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Advice under development - income tax issues

We are developing advice and guidance on the following income tax issues.

Last updated 4 November 2023

[3702] Capital allowances - composite items

Title

Final Taxation Ruling

Income tax: composite items and identifying the depreciating asset for the purposes of working out capital allowances

Purpose

The final Ruling will consolidate current ATO views into a taxation ruling.

Expected completion

To be advised

Comments

Draft TR 2017/D1 published on 18 January 2017. Due to the time that has elapsed since the release of the draft Ruling and subsequent developments in the law, a revised draft TR 2023/D2 issued on 4 October 2023. Comments period closes on 3 November 2023.

Contact

PAGPW&IC@ato.gov.au

[3718] Corporate limited partnership 'credits'

Title

Final Taxation Ruling

Income tax: when does a corporate limited partnership 'credit' an amount to a partner in that partnership?

Purpose

The final Ruling will clarify when an amount is credited within the meaning of section 94M of the Income Tax Assessment Act 1936.

Expected completion

To be advised

Comments

Draft TR 2017/D4 published on 17 May 2017.

Contact

Jo Torrens, Office of the Chief Tax Counsel

Phone: (02) 9374 2035

Jo.Torrens@ato.gov.au

[3887] Infrastructure privatisation framework

Title

Taxation of Public Private Partnerships for social infrastructure projects

Purpose

This guidance will outline the ATO's position on the taxation of 'standard-form' securitised licence structure social infrastructure Public Private Partnerships

Expected completion

Early 2024

Comments

Draft guidance was issued for consultation on 31 January 2017. Finalisation of this item has been delayed due to enactment of new legislation and priority work.

Staged updates have commenced and are planned to be released on the Legal Database.

Contact

Blake Sly, Public Groups and International

Phone: (02) 4923 1814

Blake.sly@ato.gov.au

[3898] Early stage innovation company - expense tests

Title

Final Taxation Determination

Income tax: tax incentives for early stage investors: what is an 'expense' that is 'incurred' for the early stage test?

Purpose

The final Determination will set out the Commissioner's view on the expenses taken into account in determining whether a company meets the early stage limb of the early stage innovation company tests.

Expected completion

November 2023

Comments

Draft TD 2019/D5 published on 28 August 2019. Comments period closed on 11 September 2019. Finalisation of this item has been delayed due to other priority work.

Contact

Tom Rengers, Private Wealth

Phone: (07) 3213 6955

Tom.Rengers@ato.gov.au

[3899] Division 7A - undue hardship - corporate trustees

Title

Draft Taxation Determination

Income tax: can a corporate trustee be caused to suffer undue hardship due to payment of a debt for the purposes of subsection 109G(4) of the Income Tax Assessment Act 1936?

Purpose

The draft Determination will set out the Commissioner's preliminary view on whether a corporate trustee could suffer undue hardship on payment of a debt owed to a company for the purposes of subsection 109G(4) of the Income Tax Assessment Act 1936.

Expected completion

To be advised

Comments

Finalisation of this item has been delayed due to other priority work.

Contact

Peter Glindemann, Office of the Chief Tax Counsel

Phone: (07) 3213 5401

Peter.Glindemann@ato.gov.au

[3957] Taxation privileges and immunities of international organisations and persons connected with them

Title

Final Taxation Ruling

Income tax: income of international organisations and persons connected with them that is exempt from income tax

Purpose

The final Ruling will update the ATO view in TR 92/14 Income tax: taxation privileges and immunities of prescribed International Organisations and their staff following the High Court decisions in Macoun v Commissioner of Taxation [2015] HCA 44 and Commissioner of Taxation v Jayasinghe [2017] HCA 26.

Expected completion

To be advised

Comments

The ATO is working through a technical matter and will advise of an expected publication date once the matter is resolved.

Contact

Simon Weiss, Office of the Chief Tax Counsel

Phone: (02) 6216 1943

Simon.Weiss@ato.gov.au

[4000] Royalties and software

Title

Draft Taxation Ruling

Income tax: royalties - character of receipts in respect of software

Purpose

Advice on the development and marketing of software was previously provided in TR 93/12W Income tax: computer software. There is a need to provide updated guidance on modern forms of software distribution including digital channels and cloud computing. This Ruling will provide the Commissioner's view on the circumstances in which amounts in respect of the licensing and distribution of software will be royalties as defined in subsection 6(1) of the Income Tax Assessment Act 1936.

Expected completion

January 2024

Comments

Draft TR 2021/D4 published on 25 June 2021. Having regard to comments and submissions received in relation to TR 2021/D4, the Commissioner is preparing a further draft Ruling to issue for public comment.

Contact

IntangiblesArrangements@ato.gov.au

[4055] Financial advice fees

Title

Draft Taxation Determination

Income tax: deductions for fees paid for financial advice

Purpose

This draft Determination will set out the Commissioner's preliminary view on the deductibility of financial advice fees under sections 8-1 (deductions) or 25-5 (deductions for tax-related expenses) of the Income Tax Assessment Act 1997 for individuals who are not carrying on a business.

This Determination will broaden and update TD 95/60, which will be withdrawn when the updated Determination issues.

Expected completion

November 2023

Comments

Targeted consultation was undertaken with key professional bodies and financial advice providers. Comments period closed on 6 April 2023.

Contact

Danijela Jablanovic, Individuals and Intermediaries

Phone: (07) 3213 5864

Danijela.Jablanovic@ato.gov.au

For more information, see Consultation matter [202303].

[4056] Decline in value of a depreciating asset

Title

Decision impact statement on Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2

Purpose

The Decision impact statement provides the ATO's response to the Full Federal Court decision, which concerned whether the amount of the deduction available under section 40-25 of the Income Tax Assessment Act 1997 for the decline in value of a depreciating asset was the cost of that asset by virtue of the operation of section 40-80 of the ITAA 1997.

Comments

The Decision impact statement on Commissioner on Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2 published on 31 January 2023. Comments period closed on 3 March 2023.

Contact

Nitin Gulati, Office of the Chief Tax Counsel

Phone: (02) 9285 1661

Nitin.Gulati@ato.gov.au

[4057] Deductibility of self-education expenses

Title

Final Taxation Ruling

Income tax: deductibility of self-education expenses incurred by an individual

Purpose

This Ruling will provide an update of TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business to reflect the repeal of section 82A of the Income Tax Assessment Act 1936, include new case law, and ensure consistency of language across related rulings. It will also include content from TR 92/8W Income tax: deductibility of self education expenses (now withdrawn) regarding why certain legs of travel are or are not deductible.

Expected completion

To be advised

Comments

Draft TR 2023/D1 Income tax: deductibility of self-education expenses incurred by an individual published on 27 September 2023. Comments period closed on 27 October 2023.

Contact

Stephanie Oates, Individuals and Intermediaries

Phone: (07) 3213 6625

Stephanie.Oates@ato.gov.au

[4059] Crypto guidance

Title

Web guidance

Tax treatment of crypto assets

Purpose

This guidance will provide greater certainty to the community and assist in improving tax compliance on a variety of issues relating to the use of crypto assets.

We are refreshing and enhancing current ato.gov content to include information on recent developments.

Expected completion

November 2023

Contact

Klarence Lim, Individuals and Intermediaries

Phone: (08) 9268 0845

Klarence.Lim@ato.gov.au

For more information, see Consultation matter [202309].

[4065] Liability of a legal personal representative of a deceased person

Title

Update to PCG 2018/4 Income tax - liability of a legal personal representative of a deceased person

Purpose

This Guideline is being updated to provide improved certainty for legal personal representatives when finalising less complex estates.

Expected completion

To be advised

Comments

Draft PCG 2018/4DC1 Income tax - liability of a legal personal representative of a deceased person published on 27 September 2023. Comments period closes 10 November 2023.

Contact

Danijela Jablanovic

Phone: (07) 3213 5864

Danijela.Jablanovic@ato.gov.au

For more information, see Consultation matter [202225].

[4081] Corporate collective investment vehicles

Title

Final Law Companion Ruling

Corporate collective investment vehicles

Purpose

This Ruling will represent the Commissioner's view on the operation of the Corporate Collective Investment Vehicle regime, and support the introduction of the CCIV regime.

Expected completion

To be advised

Comments

Draft LCR 2023/D1External Link The corporate collective investment vehicle regime published on 1 November 2023. Comments period closes 15 December 2023.

 

Contact

Christopher Magee, Office of the Chief Tax Counsel

Phone: (02) 9374 8373

Chris.Magee@ato.gov.au

[4119] Victorian Taxi Reform Fairness Fund payments

Title

Decision Impact Statement on Bains and Commissioner of Taxation [2023] AATA 2477.

Purpose

This Decision Impact Statement outlines the ATO's response to the AAT decision that a payment received by a Victorian taxi licence holder from the Victorian Taxi Reform Fairness Fund is not income according to ordinary concepts.

Comments

The Decision impact statement on Bains and Commissioner of Taxation [2023] AATA 2477 published on 1 November 2023. Comments period closes on 1 December 2023.

Contact

Anita Carter, Office of the Chief Tax Counsel

Phone: (07) 3213 6695

Anita.Carter@ato.gov.au

QC50315