Show download pdf controls
  • Business

    • [201904] Director identification number user research [NEW]
    • [201901] Proposed public advice and guidance strategy - Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018
    • [201829] GST and financial institutions that issue credit cards
    • [201827] Replacing annual tax determinations with web content [UPDATED]
    • [201826] Tax and System Governance Assurance Tool
    • [201823] Effective life review of assets
    • [201822] Earnout arrangements
    • [201806 Professional firms - Allocation of profit guidelines and Everett Assignment web material
    • [201615] Single Touch Payroll [UPDATED]

    [201904] Director identification number user research

    Registered: February 2019

    Expected completion: April 2019

    Status

    Individuals from the community, professional associations and industry will be contacted by the ATO by telephone from 19 February 2019 through to April 2019.

    Purpose of consultation

    To further understand the user experience relating to obtaining a proposed director identification number (DIN)

    Description

    Building on previous consultation and co-design we are continuing to refine with users a future experience for the issue of a DIN to each director of any company registered or operating in Australia based on current draft legislation in Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019External Link.

    Who we are consulting

    Members of the business community, professional associations, industry and tax and legal professionals.

    Contact

    Maria Martin, Assistant Director, ATO Design

    DirectorIdentificationNumber@ato.gov.au telephone (02) 6216 5875External Link

    [201829] GST and financial institutions that issue credit cards

    Registered: December 2018

    Expected completion: March 2019

    Status

    A Consultation paper has been released that contains questions we are considering. Responses are due 15 March 2019 and can be emailed to Peter.Joseph@ato.gov.au.

    Purpose

    To assist in developing an apportionment method that can be applied by all financial institutions that issue credit cards.

    Description

    We are developing a legislative instrument under subsection 11-30(5) of the GST Act 1999 (and other equivalent provisions about claiming GST credits) to provide an apportionment method for acquisitions by credit card issuers. This consultation will assist us in developing an apportionment method that can be applied by all financial institutions that issue credit cards.

    Who we are consulting

    We are consulting through professional associations, industry representatives and individual entities.

    Contact

    Peter Joseph, Technical Director, Indirect Tax

    Peter.Joseph@ato.gov.au telephone (07) 3213 8940External Link

    [201826] Tax and System Governance Assurance Tool

    Registered: November 2018

    Expected completion: July 2019

    Status

    A workshop was held on 4 December 2018 with a number of external clients and advisors to explore how we can make the information systems risk assessment (ISRA) tool more widely available.

    The participants acknowledged the following benefits in releasing the ISRA tool externally:

    • allows the client to self-assess, can choose the timing of self-assessment and identify areas for focus early
    • are aware of what the ATO may ask should they engage in an ISRA
    • are better prepared for a conversation with ATO
    • allows the ATO to tailor compliance engagement that acknowledges good governance practice.

    The project team are current developing a prototype of the tool, based on the feedback from the group; with the intent to pilot with the working group in March-April 2019.

    Purpose

    To seek:

    • end user input into the development of the Tax and System Governance Assurance Tool (TASGATS)
    • qualitative feedback on the benefits, time and cost savings the tools would deliver, if made available

    and user test and shape external communication to raise awareness of Effective Tax Governance and Information Technology (IT) System Governance.

    Description

    The ATO has used an information system risk assessment tool over the past three years to assess the governance, and controls and health of IT systems used in the ATO’s Top 320 private groups tax performance program.

    The tool helps identify any risks that may impact on the completion and correctness of tax and superannuation reporting obligations.

    The ATO has been approached by a number of agents and clients to consider releasing the tool so taxpayers can self-assess and/or prepare for an ATO Top 320 client engagement.

    Who we are consulting

    Privately Owned and Wealthy Groups and their tax professionals

    Contact

    Sharon Sutcliffe, TASGAT Project Lead, Indirect Tax

    Sharon.Sutcliffe@ato.gov.au telephone (03) 9275 9733External Link

    [201823] Effective life review of assets

    Registered: August 2018

    Expected completion: May 2019

    Status

    Consultation with appropriate industry participants occurred between June 2018 and December 2018. Draft asset lists and effective lives are being prepared and will be published here for public comment. They will also be sent to relevant participants and professional associations for comment.

    Draft determinations will be made progressively available from February to March 2019. Comments can be provided to the relevant contacts below.

    Purpose

    To determine the effective life of assets used in the following industries:

    • aged care
    • banking
    • residential property operators including rental properties
    • scientific testing and analysis services – mineral lab assets
    • supermarket and grocery stores
    • wholesale trade – warehousing (multiple industries).

    Description

    Under section 40-100 of the Income Tax Assessment Act 1997 the Commissioner may make determinations of the effective life of depreciating assets. The determinations will be used to update and expand the effective life schedule attached to Taxation Ruling TR 2018/4.

    The draft effective lives determinations will be referred to an independent review panel expected to be held in early May 2019. The review panel checks the review process to confirm that the level of industry consultation was appropriate. If approved, the effective life determinations are expected to apply to assets purchased on or after 1 July 2019.

    Who we are consulting

    • profession associations
    • industry associations
    • businesses
    • suppliers
    • manufacturers and repairers of assets used in these industries

    Contacts

    Kim Dziedzic (Aged care), Capital Allowances Team, Advice and Guidance, Public Groups and International

    kim.dziedzic@ato.gov.au telephone: (07) 3213 5764External Link

    Scott Harris (Banking), Capital Allowances Team, Advice and Guidance, Public Groups and International

    scott.harris@ato.gov.au telephone: (07) 3213 5791External Link

    John Di Francesco (Residential property operators including rental properties), Capital Allowances Team, Advice and Guidance, Public Groups and International

    john.difrancesco@ato.gov.au telephone: (07) 3213 6059External Link

    Susan Li (Scientific testing and analysis services – mineral labs), Capital Allowances Team, Advice and Guidance, Public Groups and International

    susan.li@ato.gov.au telephone: (07) 3119 9891External Link

    Shirley Liao (Supermarket and grocery stores), Capital Allowances Team, Advice and Guidance, Public Groups and International

    shirley.liao@ato.gov.au telephone: (07) 3213 5264External Link

    Bernie Mosslar (Wholesale trade - warehousing (multiple industries)), Capital Allowances Team, Advice and Guidance, Public Groups and International

    bernard.mosslar@ato.gov.au telephone: (07) 3213 5586External Link

    [201822] Earnout arrangements

    Registered: August 2018

    Expected completion: March 2019

    Status

    A discussion paper was released for closed consultation on 24 August 2018 with comment due 26 October 2018.

    Subsequently the ATO released for public consultation the discussion paper 'Issues concerning earnout arrangements (excluding arrangements that create look-through earnout rights). The period for comment closed on 1 February 2019.

    Purpose

    The ATO is seeking feedback to:

    • identify the need and priority for public advice and guidance in the ATO’s approach to the taxation of earnout arrangements which fall outside of Subdivision 118-I of the Income Tax Assessment Act 1997.this area
    • review existing ATO guidance to identify areas which need to be clarified or changed.

    Description

    The Board of Taxation is currently conducting a post-implementation review of the tax treatment of contingent consideration (including earnouts). In light of the Board’s review, the ATO is seeking feedback on the need and priority for additional public advice and guidance on the income tax treatment of arrangements (commonly referred to as ‘earnouts’) entered into in the context of the sale of a business asset or interests in an entity carrying on a business.

    While it is expected that most standard and reverse earnout arrangements created on or after 24 April 2015 would qualify for look-through treatment under Subdivision 118-I, there are arrangements that do not satisfy the requirements of a look-through earnout right. This discussion paper focuses on such arrangements which do not qualify as look-through earnout rights under Subdivision 118-I.

    Who we are consulting

    We have consulted broadly, with the comment period closed from 1 February 2019.

    Contact

    Angela Zhang, Director, Tax Counsel Network

    FeedbackATOearnout@ato.gov.au telephone (02) 9374 2452External Link

    [201615] Single Touch Payroll

    Registered: April 2016

    Expected completion: July 2019

    Status

    The status of activity from each of the Single Touch Payroll (STP) consultation groups are available at:

    Purpose

    To:

    • raise awareness of Single Touch Payroll across industry
    • ensure we engage with a broad cross section of industry, including software developers, solution providers, associations and businesses
    • work in partnership with industry for them to help shape and influence design
    • use industry expertise and experiences as we progress the implementation of STP.

    Description

    Schedule 23 of the Budget Savings (Omnibus) Act 2016External Link contains Single Touch Payroll reporting which means:

    • employers with 20 or more employees are required to report through Single Touch Payroll-enabled software.
    • the following information must be reported on or before the day you withhold from a payment (the pay day):                              
      • payment information, including salary or wages, allowances, deductions, etc.
      • withholding amounts
      • superannuation liability information or ordinary times earnings (OTE).
    • employers who fully report all the information required through Single Touch Payroll will not have to comply with a number of other reporting obligations under the existing law. This includes providing certain payment summaries and the corresponding payment summary annual report (PSAR). They will need to provide a finalisation declaration to the ATO.
    • there is no requirement to pay PAYG withholding at the time of reporting, however an employer may make voluntary payments if they choose.
    • The Treasury Laws Amendment (2018 Measures No. 4) Bill 2018External Link, extending STP to small and micro businesses was passed by the House of Representatives on Tuesday 12 February 2019. The law change will come into effect on 1 April 2019.
    • In addition, further design elements of Single Touch Payroll and initial guidance for Phase 2 of the program are continuing through consultation with key industry working groups.

    Who we are consulting

    • intermediaries
    • software developers
    • businesses
    • industry representatives
    • super funds and clearing houses
    • employees.

    Contact

    John Shepherd, Assistant Commissioner Single Touch Payroll, Small Business
    singletouchpayroll@ato.gov.au telephone: (02) 6216 6678External Link

    Last modified: 01 Mar 2019QC 54486