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    [202034] Proposed guidance for illicit alcohol arrangements

    Registered

    November 2020

    Expected completion of consultation

    November 2020

    Consultation status

    Targeted consultation is being undertaken.

    Consultation purpose

    To seek feedback on the ATO's proposed guidance about arrangements involving retail sales of illicit alcohol.

    Description

    This proposed guidance forms part of the ATO’s broader strategy to address the illicit alcohol risk.

     

    The guidance will draw the attention of taxpayers to the current focus and activities being undertaken by the ATO in relation to illicit alcohol behaviours, with a specific focus on retailers who are deliberately or negligently selling illicit alcohol.

    Who we are consulting

     

    Consultation lead

    Naomi Schell, Private Wealth
    naomi.schell@ato.gov.au
    Phone (08) 8218 9226

    [202032] Superannuation guarantee letter to employers – User Testing

    Registered

    November 2020

    Expected completion of consultation

    December 2020

    Consultation status

    Targeted consultation is underway.

    Consultation purpose

    To test the tone, clarity of meaning and potential barriers for a proposed superannuation guarantee letter to small business employers.

    Description

    The ATO is user testing a proposed superannuation guarantee letter to small business employers to identify opportunities for refinement to improve the user experience.

    Who we are consulting

    Small business representatives

    Consultation lead

    Brendan Harwood, Enterprise Strategy and Design
    brendan.harwood@ato.gov.au
    Phone (03) 9275 9519

    [202031] Single Touch Payroll and JobMaker Hiring Credit

    Registered

    October 2020

    Expected completion of consultation

    January 2021

    Consultation status

    Targeted consultation is underway.

    Consultation purpose

    To seek feedback on impacts for Single Touch Payroll (STP) reporting for JobMaker Hiring Credit.

    Description

    On 6 October 2020 as part of the 2020–21 Budget, the government announced a new incentive for businesses to employ additional young job seekers called the JobMaker Hiring Credit. The JobMaker Hiring Credit will be administered by the ATO.

     

    This measure is subject to the passage of legislation.

     

    To be eligible, employers must:

    • hold an Australian business number (ABN)
    • be up-to-date with their tax lodgement obligations
    • be registered for pay as you go (PAYG) withholding
    • be reporting through STP.

     

    Who we are consulting

    Digital service provider industry representatives

    Consultation lead

    Sonia Lark, Enterprise Solutions and Technology
    sonia.lark@ato.gov.au
    Phone (02) 4725 7460

    [202026] COVID-19 commercial leasing income tax and GST obligations for landlords and tenants

    Registered

    October 2020

    Expected completion of consultation

    February 2021

    Consultation status

    Targeted consultation will be undertaken.

    Consultation purpose

    To obtain feedback on the proposed COVID-19 commercial leasing income tax (IT) and GST obligations fact sheets for landlords and tenants.

    Description

    As part of the COVID-19 stimulus package, the Federal Government issued a national mandatory Code of Conduct (Code) for commercial leasing.

     

    The Code applies to commercial tenants with an annual turnover of up to $50 million that are also eligible to receive JobKeeper payments for eligible employees. The Code contains 14 principles that apply to negotiating amendments in good faith to existing leasing arrangements.

     

    The fact sheets are to assist small and medium businesses comply with their GST and IT obligations in line with the Code. The fact sheets will:

    • clarify IT and GST consequences for commercial landlords and tenants that negotiate rent waivers or deferrals of commercial lease payments covered by the Code
    • assist small and medium businesses to pay the right amount of tax as a result of negotiating commercial lease arrangements during the COVID-19 pandemic.

     

    Who we are consulting

     

    Consultation lead

    Adriana Vontelas, Public Groups and International
    adriana.vontelas@ato.gov.au
    Phone (02) 9374 2547

    [202023] Fuel Tax Credits – Basic Heavy Vehicle Apportionment Method proposed Practical Compliance Guideline

    Registered

    September 2020

    Expected completion of consultation

    October 2020

    Consultation status

    Targeted consultation is being undertaken.

    Consultation purpose

    To obtain feedback on the simplified apportionment in the proposed Fuel Tax Credits – Basic Heavy Vehicle Apportionment Method Practical Compliance Guideline.

    Description

    Fuel tax credit entitlement is reduced by the amount of the road user charge to the extent that the fuel is used for travel on a public road. This requires an apportionment between the fuel used for travel on a public road and that used for other purposes.

     

    The Practical Compliance Guideline will consist of simple formulas to allow small claimants in the transport industry to calculate their fuel tax credit entitlement.

    Who we are consulting

    Fuel Schemes Stakeholder Group

    Consultation lead

    Anthony Barnard, Private Wealth
    anthony.barnard@ato.gov.au
    Phone (03) 9285 1974

    [202020] Excise Guidelines for the Alcohol Industry – Excise Refund Scheme

    Registered

    August 2020

    Expected completion of consultation

    November 2020

    Consultation status

    Targeted consultation is underway.

    Consultation purpose

    To obtain feedback on the proposed updates to Chapter 7 of the Excise Guidelines for the Alcohol Industry.

    Description

    The updates will provide detailed explanations of when an alcohol manufacturer has manufactured an alcoholic beverage, and when alcohol manufacturers are legally and economically independent for the purposes of the Excise Refund Scheme.

    Who we are consulting

     

    Consultation lead

    Tony Giannaros, Excise Centre, Private Wealth
    wetnewmeasures@ato.gov.au
    Phone (08) 7422 2438

    [202017] Intangibles arrangements proposed Draft Practical Compliance Guideline

    Registered

    July 2020

    Expected completion of consultation

    November 2020

    Consultation status

    Targeted consultation has been extended to seek further feedback on changes made to the proposed Draft Practical Compliance Guideline based on initial consultations.

    Consultation purpose

    To obtain feedback on the proposed draft Intangibles Arrangements Practical Compliance Guideline and seek input on the design, content and structure prior to publication of the draft for public consultation.

    Description

    The Practical Compliance Guideline will set 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 (GAAR) and the diverted profits tax provisions. The capital gains tax and capital allowances provisions are discussed in this guideline where these may be considered alongside, or relevant to, the ATO's transfer pricing, GAAR or diverted profits tax risk assessment.

     

    See Advice under development – [4006] Intangibles arrangements.

    Who we are consulting

    Tax professionals

    Consultation lead

    Marian Georgievski, Public Groups and International
    Christopher Ferguson, Public Groups and International
    PGIIntangiblesMigration@ato.gov.au

    [202015] Effective life review of assets

    Registered

    July 2020

    Expected completion of consultation

    March 2021

    Consultation status

    Consultation with relevant industry participants will be undertaken until March 2021.

    Consultation purpose

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

    • Casino operations
    • Medical and surgical equipment manufacturing
    • Other non-metallic mineral mining
    • Horse training (racing) industry.

     

    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 2020/3 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 2021. 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 2021.

     

    See Effective life reviews in progress.

    Who we are consulting

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

     

    Consultation lead

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

     

    Kim Dziedzic (Medical and surgical equipment manufacturing), Capital Allowances Team, Advice and Guidance, Public Groups and International
    kim.dziedzic@ato.gov.au
    Phone (07) 3213 5764

     

    Andrey Chichkanov (Other non-metallic mineral mining), Capital Allowances Team, Advice and Guidance, Public Groups and International
    andrey.chichkanov@ato.gov.au Phone (07) 3149 5368

     

    Susan Li (Horse training – racing industry), Capital Allowances Team, Advice and Guidance, Public Groups and International
    susan.li@ato.gov.au Phone (07) 3119 9891

    [201936] Online services for business

    Registered

    November 2019

    Expected completion of consultation

    December 2020

    Consultation status

    Co-design activities are being undertaken.

    Consultation purpose

    To understand the current experience for small business (including sole traders), SMSF approved auditors, not-for-profits, medium and large business, superannuation funds and insolvency practitioners who use the Business Portal, to help inform the future design of online services for business.

    Description

    The ATO is exploring the user experience to identify opportunities to improve the future design of online services for business.

    Who we are consulting

    • Small business (including sole traders)
    • SMSF auditors
    • Insolvency practitioners
    • Not-for-profits
    • Medium business
    • Large business
    • Superannuation funds

     

    Consultation lead

    Kim Dimmick, Transition Manager, Small Business
    kim.dimmick@ato.gov.au
    Phone (07) 3213 5439

    [201931] Strengthening the ABN system

    Registered

    October 2019

    Expected completion of consultation

    June 2021

    Consultation status

    The ATO has engaged in joint consultation sessions with Treasury and will further engage with stakeholders to co-design administrative solutions for the two new conditions.

    Consultation 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:

    • ABN holders
    • Intermediaries, including digital service providers and small businesses
    • Industry groups

     

    Consultation lead

    Nicola Black, Director, Commonwealth Business Registry Service
    nicola.black@ato.gov.au
    Phone (08) 7422 2620

     

    Simon Lovering, 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 of consultation

    November 2020

    Consultation status

    Further consultation on GST related issues is underway.

    Consultation 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, which may include withholding and reporting obligations. This guidance will complement the guidance that has been published for Super funds and Individuals who are recipients of the remediation payments.

     

    See Advice under development – [3999] Compensation payments made by financial institutions.

    Who we are consulting

    Financial institutions

    Consultation lead

    Dean Lynch, Client Engagement Director, Public Groups and International
    dean.lynch2@ato.gov.au
    Phone (02) 9374 8567

    [201923] Disclosure of business tax debts

    Registered

    August 2019

    Expected completion of consultation

    December 2020

    Consultation 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.

     

    Further targeted consultation is currently taking place with community representatives and the Inspector-General of Taxation and Taxation Ombudsman.

     

    The ATO is taking all feedback into consideration while progressing through the design process.

    Consultation 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).

     

    See Advice under development – [3994] Disclosure of business tax debts.

    Who we are consulting

    • Community
    • Businesses
    • Inspector-General of Taxation and Taxation Ombudsman

     

    Consultation lead

    Terry Muggeridge, Director, Debt and Lodgment Integration
    DisclosureOfBusinessTaxDebts@ato.gov.au
    Phone (08) 9268 6126

      Last modified: 16 Nov 2020QC 54486