The following public advice and guidance issues have been completed.
[3702] Capital allowances – composite items
Purpose
This Ruling addresses the issue of whether an asset that is made up of a number of parts or components (that is, the composite item) is itself a depreciating asset, or whether one or more of its components are separate depreciating assets.
Outcome
Taxation Ruling TR 2024/1 Income tax: composite items – identifying the relevant depreciating asset for capital allowances published on 31 January 2024.
[3718] Corporate limited partnership ‘credits’
Purpose
This Ruling clarifies when a corporate limited partnership 'credits' an amount to one of its partners within the meaning of section 94M of the Income Tax Assessment Act 1936.
Outcome
Taxation Ruling TR 2024/2 Income tax: when does a corporate limited partnership ‘credit’ an amount to a partner in that partnership? published on 21 February 2024.
[3887] Infrastructure privatisation framework [new]
Purpose
This guidance outlines the ATO’s position on the taxation of social infrastructure Public Private Partnerships (PPPs).
Outcome
Taxation of PPPs for social infrastructure projects was published on 10 April 2024.
[3950] OECD hybrid mismatch rules
Purpose
This guidance addresses the Commissioner’s view on key aspects of the ‘subject to foreign income tax’ definition, with particular focus on treatment of intra-group payments between members of the same US consolidated group.
Outcome
Hybrid mismatch rules, which explains how the hybrid mismatch rules work and when they apply, published on 25 January 2024.
[4006] Intangibles arrangements
Purpose
The Guideline sets out the ATO's compliance approach to international arrangements connected with the development, enhancement, maintenance, protection and exploitation of intangible assets; specifically, the potential application of the transfer pricing, general anti-avoidance rule and the diverted profits tax provisions.
Outcome
Practical Compliance Guideline PCG 2024/1 Intangibles migration arrangements published on 24 January 2024.
[4054] Fringe benefits tax and electric vehicles
Purpose
This Guideline considers both fringe benefits tax and income tax issues and provides a methodology to enable users of electric vehicles to determine an approximate cost for the electricity when charging an electric vehicle at home.
Outcome
Final Practical Compliance Guideline PCG 2024/2 Electric vehicle home-charging rate: calculating electricity costs when charging a zero or low emissions vehicle at an employee's or individual's home published on 1 February 2024.
[4057] Deductibility of self-education expenses
Purpose
This Ruling provides an update of Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business (withdrawn) 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 also includes content from Taxation Ruling TR 92/8 Income tax: deductibility of self education expenses (withdrawn) regarding why certain legs of travel are or are not deductible.
Outcome
Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual published on 21 February 2024.
[4065] Liability of a legal personal representative of a deceased person [new]
Purpose
This Guideline has been updated to provide improved certainty for legal personal representatives when finalising less complex estates.
Outcome
An update to Practical Compliance Guideline PCG 2018/4 Income tax – liability of a legal personal representative of a deceased person was published on 10 April 2024.
[4096] Supplies of combination food
Purpose
The Determination provides the Commissioner’s view on the meaning of 'food that is a combination of one or more foods’ for the purposes of paragraph 38-3(1)(c) of A New Tax System (Goods and Services Tax) Act 1999 following the Administrative Appeals Tribunal decision in Chobani Pty Ltd and Commissioner of Taxation [2023] AATA 1664.
Outcome
Goods and Services Tax Determination GSTD 2024/1 Supplies of combination food published on 28 February 2024.
[4100] Deductibility of settlement payment
Purpose
This Decision impact statement outlines the ATO’s response to the Federal Court decision on Commissioner of Taxation v Wood [2023] FCA 574 which concerned whether a payment made by the taxpayer to settle litigation after his relevant employment ended was deductible under section 8-1 of the Income Tax Assessment Act 1997.
Outcome
The Decision impact statement – Commissioner of Taxation v Wood was published on 21 February 2024 and no further updates will be made.
[4119] Victorian Taxi Reform Fairness Fund Payments
Purpose
The Decision impact statement on Bains and Commissioner of Taxation [2023] AATA 2477 outlined the ATO's response to the Administrative Appeals Tribunal's 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.
Outcome
Taxi licence holders – payments and levies has been updated to provide current advice on tax obligations for taxi industry assistance payments.
[4125] Frozen foods marketed as prepared meals
Purpose
The Decision impact statement outlines the ATO’s response to the Federal Court decision on Simplot Australia Pty Limited v Commissioner of Taxation [2023] FCA 1115, which concerned whether 6 frozen food products were of a kind 'marketed as a prepared meal' and therefore taxable under paragraph 38-3(c) of the A New Tax System (Goods and Services Tax) Act 1999.
Outcome
The Decision impact statement – Simplot Australia Pty Limited v Commissioner of Taxation published on 8 November 2023 and no further updates will be made. Work continues on reviewing impacted advice and guidance outlined in the Decision impact statement.
[4138] Sale of residential premises – profit-making purpose [new]
Purpose
This Decision impact statement outlines the ATO's response to the Administrative Appeals Tribunal decision, which concerned the deductibility under section 8-1 of the Income Tax Assessment Act 1997 of a loss incurred by an individual on the sale of her home which she acquired with the purpose of making a profit in a commercial manner.
Outcome
The Decision impact statement on Bowerman and Commissioner of Taxation published on 13 March 2024 and no further updates will be made.