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  • Business

    [201931] Strengthening the ABN system

    Registered

    October 2019

    Expected completion

    June 2020

    Status

    The ATO will engage in joint consultation sessions with Treasury.

    Purpose

    To work in partnership with key stakeholders to explore and co-design solutions for the administrative approach to strengthening the Australian Business Number (ABN) system to disrupt black economy behaviour.

    Description

    In the 2019-20 Federal Budget, the government announced that it will strengthen the ABN system to disrupt black economy behaviour by requiring ABN holders:

    • from 1 July 2021, with an income tax return obligation, to lodge their income tax return
    • from 1 July 2022, to confirm the accuracy of their details on the Australian Business Register annually.

    The new conditions will make ABN holders more accountable for meeting their government obligations, while minimising the regulatory impact on businesses doing the right thing.

    Who we are consulting

    Including but not limited to:

     

    Contact

    Simon Lovering, Relationship Manager, Commonwealth Business Registry Service
    simon.lovering@ato.gov.au
    Phone (08) 8208 3016

    [201927] Guidance on compensation payments made by financial institutions

    Registered

    October 2019

    Expected completion

    December 2019

    Status

    Consultation commenced on 17 October 2019 with representatives of financial institutions that are impacted.

    Purpose

    To discuss scenarios where uncertainty of the GST and income tax consequences of compensation payments has been identified.

    Description

    There are multiple taxation consequences for the payment of compensation that arise from the behaviours identified in the Banking Royal Commission.

     

    We are currently considering developing high-level guidance for publication on ato.gov.au for payers of the compensation. This guidance will complement the guidance that has been published for Super funds and Individuals who are recipients of the remediation payments.

    Who we are consulting

    Financial institutions

    Contact

    Katherine Leung, Client Engagement Director, Public Groups and International
    katherine.leung@ato.gov.au
    Phone (02) 9374 2400

    [201923] Disclosure of business tax debts

    Registered

    August 2019

    Expected completion

    December 2019

    Status

    Feedback on the consultation paper on the ATO’s administrative approach to the disclosure of business tax debt information to credit reporting bureaus closed 6 September 2019.

     

    The ATO is taking this feedback into consideration whilst progressing through the design process and will undertake further targeted consultation if required.

    Purpose

    To seek comment on the ATO’s administrative approach to the disclosure of business tax debt information to credit reporting bureaus.

    Description

    In the 2016–17 Mid-Year Economic and Fiscal Outlook, the government announced its intention to allow the ATO to report to credit reporting bureaus (CRBs), the tax debt information of entities that consistently do not engage with the ATO to manage those tax debts.

     

    The purpose of allowing the ATO to report an entity’s tax debt information to CRBs is to:

    • support more informed decision making within the business community
    • reduce the unfair advantage obtained by entities that do not pay their tax on time and who do not engage with the ATO in managing their tax debts
    • encourage entities to engage with the ATO to manage their tax debts.

    Under the ATO’s phased implementation approach, the measure will be implemented gradually to ensure systems, safeguards and process are robust.

     

    As part of the gradual implementation, the initial phase will focus on raising community awareness of the measure and its implications. Initially, only companies that meet defined criteria and who have significant high risk tax debts will be reported. Gradually, implementation will be expanded to other entity types such as partnerships, trusts and sole traders. The measure does not apply to individuals who do not have an Australian business number (ABN).

    Who we are consulting

    • Community
    • Businesses

     

    Contact

    Tara Mclachlan, Director, Operational Policy, Assurance and Law
    taxdebttransparency@ato.gov.au
    Phone (07) 3149 5339

    [201922] Improving the 2020 Company Tax Return (CTR) Instructions

    Registered

    July 2019

    Expected completion

    November 2019

    Status

    Consultation with tax practitioners, digital service providers and small business has been completed. Interviews with medium and large businesses that commenced in September are continuing in November.

    Purpose

    To seek advice and feedback on improving the 2020 CTR instructions.

    Description

    The CTR instructions format has remained fundamentally unchanged from the original paper product that was produced until 2015.

     

    The intention is to review and revise the CTR instructions and make modifications to:

    • improve the online useability
    • remove duplicate information
    • streamline the guidance to assist in more timely preparation and completion of the CTR.

     

    Who we are consulting

     

    Contact

    Dimce Ristevski, Change Manager, Public Groups and International
    dim.ristevski@ato.gov.au
    Phone (02) 6216 1718

    [201921] Extension of the Reportable Tax Position Schedule to large private companies and corporate groups

    Registered

    July 2019

    Expected completion

    April 2020

    Status

    Based on the feedback received on the consultation paper, and with the support from the Private Groups Stewardship Group, implementing the expansion of the RTP Schedule to include large private companies and corporate groups has been deferred until the 2020-21 financial year. Initially this was proposed to commence in the 2019-20 financial year.

     

    We are now working with industry groups and advisers from the Private Groups market to co-design the RTP schedule for implementation in the 2020-21 financial year.

    Purpose

    To seek feedback and comments about the implementation of Reportable Tax Position Schedule for large private companies and large private corporate groups in the 2020 income year.

    Description

    Currently all large public and multinational companies are required to complete and lodge an RTP Schedule disclosing their most contestable and material tax positions.

     

    The requirement to lodge an RTP Schedule will be extended to include large private companies and large private corporate groups in the 2020 income year.

     

    It is envisaged that the expansion of the RTP Scheduled to large private companies and corporate groups will provide a level playing field among large corporate groups by ensuring all large businesses have the same obligation to disclose their most contestable and material tax positions, irrespective of whether they are a public or private business.

     

    The extension of the RTP Schedule to large private companies and corporate groups will support the ATO's engagement with large market taxpayers and allow us to identify areas where we need to provide further clarification/certainty on the correct treatment of transactions and complex high risk tax arrangements.

    Who we are consulting

     

    Contact

    Michael Drogaris, Project Manager, Private Wealth
    michael.drogaris@ato.gov.au
    Phone (02) 9374 2323

    [201920] Effective life review of assets

    Registered

    June 2019

    Expected completion

    March 2020

    Status

    Consultation with appropriate industry participants will occur between June 2019 and March 2020. After consultation is completed draft asset lists and effective lives will be prepared and will be published 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 2020. To participate in the consultation and to influence the effective lives, or to provide comments on the draft determinations contact the relevant officers.

    Purpose

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

    • child care services industry
    • aircraft industry
    • general practice medical services
    • funeral, crematorium and cemetery services
    • supermarket and grocery stores.

     

    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 2019/5 Income tax: effective life of depreciating assets.

     

    The draft effective lives determinations will be referred to an independent review panel expected to be held in April 2020. 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 2020.

    Who we are consulting

    • Professional associations
    • Industry associations
    • Businesses
    • Suppliers
    • Manufacturers and repairers of assets used in these industries

     

    Contact

    Kim Dziedzic (General Practice medical services), Capital Allowances Team, Advice and Guidance, Public Groups and International
    kim.dziedzic@ato.gov.au
    Phone (07) 3213 5764

     

    Adam Vigar (Funeral, crematorium and cemetery services), Capital Allowances Team, Advice and Guidance, Public Groups and International
    adam.vigar@ato.gov.au
    Phone (07) 3213 5350

     

    John Di Francesco (Aircraft industry), Capital Allowances Team, Advice and Guidance, Public Groups and International
    john.difrancesco@ato.gov.au
    Phone (07) 3213 6059

     

    Susan Li (Child care services industry), Capital Allowances Team, Advice and Guidance, Public Groups and International
    susan.li@ato.gov.au
    Phone (07) 3119 9891

     

    Shirley Liao (Supermarket and grocery stores), Capital Allowances Team, Advice and Guidance, Public Groups and International
    shirley.liao@ato.gov.au
    Phone (07) 3213 5264

    [201903] e-invoicing initiative

    Registered

    February 2019

    Expected completion

    December 2019

    Status

    A summary of changesExternal Link made was published following consultation on local (domain-specific) arrangements and requirements for electronic invoicing (e-invoicing) in Australia and New Zealand (A-NZ).

     

    We will continue to consult as needed on further matters relating to the implementation of the Pan European Public Procurement On-Line (PEPPOL) framework.

    Purpose

    To seek stakeholder input on the establishment of an Australian PEPPOL authority and associated arrangements.

    Description

    The Australian and New Zealand Prime Ministers issued a joint announcementExternal Link on e-invoicing on 22 February 2019 stating the two countries' intention to adopt the Pan European Public Procurement On-Line (PEPPOL) interoperability framework as the basis for trans-Tasman e-invoicing.

     

    We are seeking input from businesses, government agencies, intermediaries and digital service providers on the establishment of an Australian PEPPOL authority and associated arrangements.

     

    Matters may include, but are not limited to the governance, semantic and technical aspects of the framework.

    Who we are consulting

    A range of stakeholders, including:

     

    Contact

    Bruce Rossel, e-invoicing Project Team, Digital Delivery
    e-invoicing@ato.gov.au
    Phone (02) 6216 1787

    [201615] Single Touch Payroll

    Registered

    April 2016

    Expected completion

    July 2020

    Status

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

     

    The ATO will continue to engage and work with industry members in targeted consultation groups and consult with broader stakeholder groups, such as digital service providers, employers and agents.

    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 came into effect on 1 March 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

    Jason Lucchese, Assistant Commissioner Single Touch Payroll, Superannuation and Employer Obligations
    singletouchpayroll@ato.gov.au
    Phone (02) 6216 2471

      Last modified: 08 Nov 2019QC 54486