ATO Advice and Guidance Issue List

The following documents are scheduled to issue in the week commencing 27 June 2022.
 

Taxation ruling

TR 2022/1 Income tax: effective life of depreciating assets (applicable from 1 July 2022)
This Ruling updates Taxation Ruling TR 2021/3 Income tax: effective life of depreciating assets (applicable from 1 July 2021) to include new effective lives determined by the Commissioner for depreciating assets used in casino operations, clothing manufacturing, salt manufacturing and refining and wooden furniture and upholstered seat manufacturing which will apply from 1July 2022. This Ruling explains the methodology used by the Commissioner in making effective life determinations and provides 'safe harbour' effective lives which can be used to work out an asset's depreciation deduction for tax purposes.
Publication date: 29 June 2022


 

Taxation determinations

TD 2022/9 Income tax: is section 951A of the US Internal Revenue Code a provision of a law of a foreign country that corresponds to sections 456 or 457 of the Income Tax Assessment Act 1936 for the purpose of subsection832-130(5) of the Income Tax Assessment Act 1997?
This Determination considers the interaction of section 951A of the United States (US) Internal Revenue Code (IRC), referred to as the 'global intangible low-taxed income' (GILTI) regime, with Australia's hybrid mismatch rules in Division 832 of the Income Tax Assessment Act 1997 (ITAA 1997).
The Determination explains the ATO's view that section 951A of the US IRC does not correspond to sections 456 or457 of the Income Tax Assessment Act 1936 (the operative provisions of Australia's controlled foreign companies (CFC) regime). Rather, section 951A and other related provisions of the US IRC are widely considered to be a US 'minimum tax regime' for which there is no equivalent in Australia.
As US GILTI does not correspond to Australia's CFC provisions, a payment that is included in GILTI will not be taken to be 'subject to foreign income tax' in the US for purposes of the hybrid mismatch rules in Division 832 of the ITAA1997.
Publication date: 29 June 2022


 

TD 2022/10 Income tax: what are the reasonable travel and overtime meal allowances for the 2022-23 income year?
This Determination sets out the amounts that the Commissioner considers are reasonable (reasonable amounts) for the substantiation exception in Subdivision 900-B of the Income Tax Assessment Act 1997 for the 2022-23 income year in relation to claims made by employees for:

  • overtime meal expenses - for food and drink when working overtime
  • domestic travel expenses - for accommodation, food and drink, and incidentals when travelling away from home overnight for work (particular reasonable amounts are given for employee truck drivers, office holders covered by the Remuneration Tribunal and Federal Members of Parliament), and
  • overseas travel expenses - for food and drink, and incidentals when travelling overseas for work.

Publication date: 29 June 2022

 

Employees guide for work expenses - update

The Employees guide for work expenses has been updated to include:

  • additional and up to date information on working from home expenses, including a change to the heading for this information from 'home office expenses' to 'working from home expenses'
  • references to Taxation Rulings TR 2021/1 Income tax: when are deductions allowed for employees' transport expenses? and TR 2021/4 Income tax and fringe benefits tax: employees: accommodation and food and drink expenses travel allowances, and living-away-from-home allowances, and Practical Compliance Guideline PCG 2021/3 Determining if allowances or benefits provided to an employee relate to travelling on work or living at a location - ATO compliance approach, and
  • information on when employees can claim a deduction for COVID-19 tests.

Publication date: 29 June 2022

 

Practical compliance guideline - update

PCG 2018/9 Central management and control test of residency: identifying where a company's central management and control is located
This update extends the transitional compliance approach period that applies to certain foreign incorporated companies where such companies have been impacted in their efforts to change their governance arrangements.
Publication date: 29 June 2022


 

Withdrawals

TR 2010/3 Income tax: Division 7A loans: trust entitlements

PS LA 2010/4 Division 7A: trust entitlements
These documents are being withdrawn with effect from 1 July 2022. Draft Taxation Determination TD 2022/D1 Income tax: Division 7A: when will an unpaid present entitlement or amount held on sub-trust become the provision of 'financial accommodation' was published on 23 February 2022. When finalised, this Determination will contain the ATO view and compliance approach on this issue and will apply to trust entitlements created on or after 1 July 2022.
An entity may continue to rely on TR 2010/3 and PS LA 2010/4 in respect of trust entitlements conferred on or before 30 June 2022. That is, the Commissioner will not devote compliance resources to arrangements conducted in accordance with TR 2010/3 in respect of trust entitlements arising on or before 30 June 2022. In addition, the Commissioner will not devote compliance resources to sub-trust arrangements conducted in accordance with PS LA 2010/4 in respect of trust entitlements arising on or before 30 June 2022, even though those sub-trust arrangements may commence after 30 June 2022.
Publication date for TR 2010/3 withdrawal: 30 June 2022
Publication date for PS LA 2010/4 withdrawal: 1 July 2022


 

TR 2021/3Income tax: effective life of depreciating assets (applicable from 1 July 2021
This Ruling is being withdrawn from 1 July 2022 and is replaced by TR 2022/1 Income tax: effective life of depreciating assets (applicable from 1 July 2022). To the extent that the views contained in TR 2021/3 still apply, they have been incorporated into TR 2022/1.
Publication date: 29 June 2022


 

Synthesised texts of the MLI and Australian tax treaties - updates

Synthesised text of the MLI and the Agreement between Australia and the Kingdom of Belgium
Synthesised text of the MLI and the Convention between Australia and the Government of the United Kingdom of Great Britain and Northern Ireland
Publication date: 1 July 2022


 

Class ruling

CR 2022/59 Cedar Woods Properties Limited - bonus share plan
Publication date: 29 June 2022


 

Addendum

CR 2013/14 Goods and services tax: goods and services supplied by dentists
This Ruling has been amended to update the list of goods and services in Attachment A and to address other minor issues.
Publication date: 29 June 2022


 

Please note that this list is subject to change.