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  • Latest news on tax law and policy

    This section provides details of proposed changes to tax and superannuation legislation and policy, and how the ATO proposes to administer the changes.

    Superannuation Guarantee Amnesty

    On 24 May 2018, Minister for Revenue and Financial Services announced External Linkthe commencement of a 12 month Superannuation Guarantee Amnesty (the Amnesty). The Amnesty is a one-off opportunity for employers to self-correct past super guarantee (SG) non-compliance without penalty. Subject to the passage of legislation, the Amnesty will be available from 24 May 2018 to 23 May 2019. For more information is available here.

    Budget 2018–19

    The Government handed down the 2018–19 Budget on 8 May 2018, with several proposed changes to tax and superannuation laws. You can access the Budget papers here: budget.gov.auExternal Link

    Revenue Measures

    Measure name

    Proposed start date

    Developments

    Backing Small Business Investment – further extending the immediate deductibility threshold
    (Budget Paper No. 2 – page 20)

    1 July 2018

    The Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Act 2018External Link was given Royal Assent on 21 September 2018.

    Black EconomyExternal Link Package – new and enhanced ATO enforcement against the Black Economy
    (Budget Paper No. 2 – page 23)

    2018–19

     

    Black EconomyExternal Link Package – introduction of an economy–wide cash payment limit
    (Budget Paper No. 2 – page 23)

    1 July 2019

     

    Black EconomyExternal Link Package – further expansion of taxable payments reporting
    (Budget Paper No. 2 – page 22)

    1 July 2019

    Further information on this measure is available here.

    Black EconomyExternal Link Package – removing tax deductibility of non-compliant payments
    (Budget Paper No. 2 – page 24)

    1 July 2019

    The Treasury Laws Amendment (Black Economy Taskforce Measures No. 2) Act 2018External Link was given Royal Assent on 29 November 2018

    Black EconomyExternal Link Package – combatting illicit tobacco
    (Budget Paper No. 2 – page 12)

    1 July 2019

     

    Reforms to combat illegal Phoenixing
    (Budget Paper No. 2 – page 37)

    Royal Assent

    Public consultationExternal Link on the draft legislation for this measure is now open, closing on 27 September 2018.

    Levelling the playing field for online hotel bookings
    (Budget Paper No. 2 – page 29)

    1 July 2019

    Public consultationExternal Link on the draft legislation for this measure closed on 9 August 2018.

    Removing luxury car tax on re-imported cars following refurbishment overseas
    (Budget Paper No. 2 – page 38)

    1 January 2019

     

    Alcohol Taxation – extending support for craft brewers and distillers
    (Budget Paper No. 2 – page 19)

    1 July 2019

     

    Personal income tax plan:

    • Targeted tax relief to low and middle income earners
    • Protecting middle income Australians from bracket creep
    • Ensuring Australians pay less for tax by making the system simpler

    (Budget Paper No. 2 – page 33)

     

    1 July 2018

     

    1 July 2018

     

    1 July 2024

    The Treasury Laws Amendment (Personal Income Tax Plan) Act 2018External Link was given the Royal Assent on 21 June 2018.

    Personal Income Tax – ensuring individuals meet their tax obligations
    (Budget Paper No. 2 – page 31)

    1 July 2018

     

    Superannuation – better integrity over deductions for personal contributions
    (Budget Paper No. 2 – page 39)

    1 July 2018

     

    Tax Integrity – taxation of income for an individual's fame or image
    (Budget Paper No. 2 – page 45)

    1 July 2019

     

    Tax Integrity – deny deductions for vacant land
    (Budget Paper No. 2 – page 42)

    1 July 2019

     

    Personal Income Tax – increasing the Medicare Levy low-income threshold
    (Budget Paper No. 2 – page 32)

    2017–18 income year

    The Treasury Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2018External Link was introduced to Parliament on 24 May 2018.

    A firm stance on tax and superannuation debts
    (Budget Paper No. 2 – page 19)

    1 July 2018

     

    Protecting Your Super Package – capping passive fees, banning exit fees and reuniting small and inactive superannuation accounts
    (Budget Paper No. 2 – page 35)

    1 July 2019

     

    Superannuation – increasing the maximum number of allowable members in self-managed superannuation funds and small APRA funds from four to six
    (Budget Paper No. 2 – page 40)

    1 July 2019

     

    Superannuation – three-yearly audit cycle for some self-managed superannuation funds
    (Budget Paper No. 2 – page 41)

    1 July 2019

     

    Superannuation – preventing inadvertent concessional cap breaches by certain employees
    (Budget Paper No. 2 – page 40)

    1 July 2018

    Refer to related new legislation webpage.

    The Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018External Link was introduced to Parliament 24 May 2018.

    Full Cost Recovery of Superannuation Activities
    (Budget Paper No. 2 – page 27)

    2018–19

     

    More Choices for a Longer Life – work test exemption for recent retirees
    (Budget Paper No. 2 – page 30)

    1 July 2019

     

    Better targeting the research and development tax incentive
    (Budget Paper No. 2 – page 21)

    1 July 2018

    Fact Sheet: Reforming the R&D Tax IncentiveExternal Link

    Tax Integrity – removing the capital gains discount at the trust level for Managed Investment Trusts and Attribution MITs
    (Budget Paper No. 2 – page 44)

    1 July 2019

     

    Stapled structures – tightening concessions for foreign investors
    (Budget Paper No. 2 – page 38)

    1 July 2018 (thin capitalisation elements); 1 July 2019 (remainder of the package)

    Refer to related new legislation webpage

    Company Tax – significant global entity definition amendment
    (Budget Paper No. 2 – page 26)

    1 July 2018

     

    Company Tax – income tax consolidation
    (Budget Paper No. 2 – page 25)

    Date of introduction

     

    Tax Integrity – thin capitalisation – valuation of assets and treatment of consolidated entities
    (Budget Paper No. 2 – page 46)

    1 July 2019

    Valuations that were made prior to 7.30pm (AEST) on 8 May 2018 may be relied on until the beginning of an entity’s first income year commencing on or after 1 July 2019.

    International Tax – updating the list of information exchange countries
    (Budget Paper No. 2 – page 28)

    1 January 2019

     

    Company Tax – improving the integrity of the tax treatment of concessional loans between tax exempt entities
    (Budget Paper No. 2 – page 25)

    8 May 2018

     

    Tax Integrity – extending anti-avoidance rules for circular trust distributions
    (Budget Paper No. 2 – page 43)

    1 July 2019

    Public consultationExternal Link on the draft legislation for this measure is now open, closing on 31 October 2018.

    Tax Integrity – enhancing the integrity of concessions in relation to partnerships
    (Budget Paper No. 2 – page 43)

    7:30pm (AEST) 8 May 2018

    Public consultationExternal Link on the draft legislation for this measure is now open, closing on 31 October 2018.

    Tax Integrity – clarifying the operation of the Division 7A integrity rule
    (Budget Paper No. 2 – page 41)

    1 July 2019

     

    Tax Integrity – improving the taxation of testamentary trusts
    (Budget Paper No. 2 – page 44)

    1 July 2019

     

    Company Tax – taxation of financial arrangements – regulation reform
    (Budget Paper No. 2 – page 26)

    Royal Assent

     

    Pathway to Permanent Residency for Retirement Visa Holders – establishment
    (Budget Paper No. 2 – page 14)

    2018–19

     

    Income Tax – exemption for the International Cricket Council for the ICC World Twenty20 in 2020
    (Budget Paper No. 2 – page 27)

    1 July 2018

    The Treasury Laws Amendment (Tax Integrity and Other Measures No. 2) Bill 2018External Link was introduced to Parliament 24 May 2018.

    Indirect Tax Concession Scheme – diplomatic and consular concessions
    (Budget Paper No. 2 – page 28)

    As specified by the Minister for Foreign Affairs

     

    Miscellaneous Amendments – ongoing care and maintenance of Treasury portfolio legislation
    (Budget Paper No. 2 – page 30)

    Various

     

    Personal Income Tax – income tax exemption for certain Veteran Payments
    (Budget Paper No. 2 – page 31)

    1 May 2018

     

    Philanthropy – updates to the list of specifically listed deductible gift recipients
    (Budget Paper No. 2 – page 34)

    Various

    The Treasury Laws Amendment (Tax Integrity and Other Measures No. 2) Bill 2018External Link was introduced to Parliament 24 May 2018.

    Personal Income Tax – retaining the Medicare Levy rate at 2%
    (Budget Paper No. 2 – page 32)

    1 July 2019

     

    Expense Measures

    Measure name

    Proposed start date

    Developments

    Modernising payroll and superannuation fund reporting
    (Budget Paper No. 2 – page 185)

    1 July 2019

     

    Black EconomyExternal Link Taskforce – Standing Taskforce
    (Budget Paper No. 2 – page 181)

    1 July 2018

     

    Black EconomyExternal Link Taskforce – Implementation Team
    (Budget Paper No. 2 – page 180)

    1 July 2018

     

    Black EconomyExternal Link Taskforce – increasing the integrity of the Commonwealth Procurement Process
    (Budget Paper No. 2 – page 181)

    1 July 2019

    Refer to related new measure webpage

    Black EconomyExternal Link Taskforce – consulting on a new regulatory framework for Australian Business Numbers
    (Budget Paper No. 2 – page 180)

    2018–19

     

    Delivering Australia's Digital Future – GovPass Program – accelerated implementation
    (Budget Paper No. 2 – page 167)

    2018–19

     

    Delivering Australia’s Digital Future – modernising business registers
    (Budget Paper No. 2 – page 182)

    2018–19

     

    Delivering Australia's Digital Future – data sharing and release arrangements
    (Budget Paper No. 2 – page 166)

    2018–19

     

    More Choices for a Longer life – finances for a longer life
    (Budget Paper No. 2 – page 175)

    1 July 2019

     

    Combined Lifetime Limit for Tuition Fee Assistance – amendment
    (Budget Paper No. 2 – page 86)

    1 January 2020

     

    Australian Charities and Not-for-profits Commission – funding for litigation expenses
    (Budget Paper No. 2 – page 179)

    2018–19

    No legislation required

    Tax Practitioners Board – funding
    (Budget Paper No. 2 – page 189)

    2018–19

    No legislation required

    Enterprise tax plan – reducing the corporate tax rate

    The Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Act 2018 received Royal Assent on 31 August 2018. This Act removes the ‘carrying on a business’ test from the 2017–18 income year onwards and introduces a passive income test in determining which companies are subject to the lower corporate tax rate.

    For more information see the Reducing the corporate tax rate new legislation page.

    Fodder storage assets

    The Treasury Laws Amendment (Supporting Australian Farmers) Act 2018External Link received Royal Assent on 3 October 2018. This Act enables primary producers to immediately deduct (rather than depreciate over three years) the cost of fodder storage assets, such as silos and hay sheds used to store grain and other animal feed. The measure applies to fodder storage assets used or installed ready for use on or after 19 August 2018.

    Last modified: 04 Dec 2018QC 43473