Further changes to Australian Employee Share Scheme rules announced - 1 July 2009
The Assistant Treasurer has issued a press release and policy statement (Press Release) setting out the Government’s “final” tax treatment of shares and rights acquired under employee share schemes. The Press Release contains some welcome changes from the initial proposal and the consultation paper and draft legislation that was released on 5 June 2009.
New Australia - NZ double tax agreement signed - 29 June 2009
The Australian and New Zealand governments today announced that the two countries have signed a new tax treaty to replace the existing 1995 treaty and 2005 protocol.
Major NSW Stamp Duty changes announced - 18 June 2009
The NSW government has announced significant changes to the stamp duties laws which will impact on financiers, borrowers, property development and the secondary market for landowning entities.
Employee share schemes: Options paper and draft legislation for Budget changes released - 9 June 2009
On Friday 5 June 2009, the Federal Government released its options paper and draft legislation for the proposed amendments to the taxation of employee share schemes announced in the recent Federal Budget, for public consultation. The options paper and draft legislation contain significant changes to the existing rules relating to the taxation of employee share schemes. These are likely to significantly alter the way in which offerings of shares and options are designed and undertaken.
Bamford: Landmark decision in taxation of Australian trusts - 3 June 2009
The Full Federal Court today handed down the much anticipated decision in Bamford v Commissioner of Taxation. The case deals with the basis upon which beneficiaries of trusts should be assessed for tax purposes. The decision is of significant importance to those involved in the administration of trusts and the funds management industry more generally, particularly in the lead up to year end distributions.
Managed investment trusts and capital gains - Treasury Discussion Paper released - 1 June 2009
The Treasury has today released a Discussion Paper setting out further details of the long awaited changes to be made to the taxation of gains and losses on the disposal of certain investments by managed investment trusts (MITs). These changes were announced by the Government as part of the Federal Budget on 12 May 2009.
Proposed employee share scheme amendments - key issues to consider - 25 May 2009
The Federal Government's announcement yesterday that it would fast track a consultation process on its proposed amendments to employee share schemes, as set out in the recent Federal Budget, is welcome news.
China issues new corporate restructuring tax rules - 15 May 2009
China has released new rules on the tax treatment of various types of corporate reorganisations, including equity and asset acquisitions, mergers, debt restructurings and enterprise spin-offs. These rules fill a gap that has existed since China’s new Corporate Income Tax Law (CIT Law) became effective on 1 January 2008 and provide clarity and guidance on what tax treatment applies during a restructure and how to qualify for the available tax benefits.
2009 Federal Budget measures - Significant changes for managed funds - 15 May 2009
In addition to the changes dealing with superannuation, the Federal Budget announcements contained significant changes, which are likely to have a widespread impact on the operation of managed funds in Australia and the global product which may be offered in Australia.
Important changes to the employee share scheme tax concession - 14 May 2009
As part of the 2009/10 Federal Budget announcements on Tuesday 12 May, the Treasurer issued a press release indicating that new measures would be introduced to remove some tax concessions, and limit others, for employees who acquire shares and options under employee share schemes.
2009 Budget overview- tax highlights at a glance - 12 May 2009
The 2009 - 2010 Budget was released by the Treasurer this evening, Tuesday 12 May 2009. As expected there were a number of major revenue and expenditure measures which will have a significant impact on business.
Permanent establishments: new Interpretative Decision issued - 1 May 2009
A new Interpretative Decision (ATO ID 2009/21) issued by the Australian Taxation Office highlights some important tax issues which need to be considered by US and other foreign resident taxpayers that lease substantial equipment in Australia.
Commonwealth Government inquiry into contribution of the not-for-profit sector - 23 April 2009
The Australian Government is seeking to improve its understanding of the contribution of not-for-profit organisations as a means of informing policy and identifying better ways of working with the sector. This may lead to significant changes in the laws regulating not for profit organisations.
Genuine redundancy payments: final Taxation Ruling issued - 24 April 2009
The Commissioner of Taxation has issued Taxation Ruling TR 2009/2 (Ruling), which highlights some important issues to be considered in determining whether payments made to employees on the termination of their employment qualify for treatment as a genuine redundancy payment.
New draft regulation on solvency clauses for debt/ equity tax rules - 22 April 2009
The Assistant Treasurer, Chris Bowen MP, has released a draft regulation for consultation which seeks to deal with the issue of solvency clauses in subordinated note issuance facilities and whether the notes are to be treated as debt for the purposes of the debt/equity tax rules.
Government announces extension of APRA's supervisory and enforcement powers - 2 March 2009
Today the Assistant Treasurer and the Minister for Superannuation and Corporate Law announced that the Government proposes to introduce a Bill to regulate the non-operating holding companies (NOHCs) of life companies.
Small Business and General Business Tax Break - details revealed - 27 February 2009
The Treasurer has released for public comment the draft legislation and explanatory materials for the Small Business and General Business Tax Break announced on 3 February 2009 as part of the Government’s Nation Building and Jobs Plan.
Henry Review calls for final public submissions - 26 February 2009
Businesses now have their last opportunity to make submissions to the Henry Review of the Tax System, with a series of meetings announced for all capital cities to obtain public views.
Government announces drawdown relief for pensioners and annuitants - 18 February 2009
Today the Treasurer and the Minister for Superannuation and Corporate Law issued a joint press release announcing relief from the requirements for minimum drawdown amounts for certain pensions and annuities.
Key legal and tax issues arising from “straddle contracts” in a tax consolidation environment - 12 February 2009
The importance of the legal construction and drafting of contracts for the sale or purchase of CGT assets in a tax consolidation environment has again been emphasised with the recent release by the Australian Taxation Office of a new tax determination (TD 2008/29).
New super guarantee draft ruling: Can overtime be "ordinary time earnings"?
The ATO has released a Draft Superannuation Guarantee Ruling (SGR 2008/D2) explaining the meaning of the terms “ordinary time earnings” and “salary or wages”. The ATO says that overtime and paid parental leave can both be included in an employee’s ordinary time earnings. Both views represent significant departures from the existing ruling and are likely to increase minimum superannuation contributions for many employers who have relied on the ruling.
Federal Court Decision: Liquidators not personally liable for GST - 15 December 2008
On 12 December, Logan J of the Federal Court handed down his decision in a GST “test case”. The case involved the sale of “new residential premises” (which attracted GST) by a liquidator that had been appointed to a company. The question was which entity is liable for the GST on the sale: the liquidator (personally) or the company?
Tax System Review Panel releases consultation papers - 10 December 2008
Australia’s Future Tax System Review Panel headed by Dr Ken Henry, which is undertaking a major review of the tax system, today released three further consultation papers for public input. The papers report on the submissions received to date, provide some discussion of what the Panel believes are the major issues and outline further questions which the Panel seeks input on in order to complete their final report in December 2009.
Amendments affecting CGT scrip for scrip roll-overs for corporate restructures - 9 December 2008
A Bill that modifies the scrip for scrip roll-over provisions to prevent a market value cost base from arising for any “qualifying interest” acquired by an acquiring entity under an arrangement that is taken to be a “restructure" has been introduced into Federal Parliament.
The new VAT rules and planned changes - 9 December 2008
On 11 November 2008 the State Council issued the Interim Regulation of the People’s Republic of China on Value Added Tax (the new “VAT Rules”). The new VAT Rules take effect from 1 January 2009 and are part of the greater tax transformation plan (“Transformation Plan”).
Prevention of double taxation for rights provided through employee share trusts- 5 December 2008
Proposed amendments introduced to Parliament on 3 December 2008 will extend the tax relief granted earlier this year to the transfer of shares from employee share trusts to employees in satisfaction of rights or options granted under employee share schemes.
TOFA Legislation Introduced into Parliament - 4 December 2008
The Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2008 (TOFA) was today introduced into the House of Representatives following the previous release of the exposure draft legislation in October. The Bill contains a comprehensive set of principles and rules for the tax-timing and character treatment of gains and losses from financial arrangements and represents Stages 3 and 4 of the TOFA legislative provisions.
Tax issues affecting rights issues, share purchase plans, demergers and returns of capital - 28 November 2008
A recent class ruling issued by the Commissioner of Taxation (CR 2008/61) has highlighted an important tax issue that may arise in relation to any rights issues, share purchase plans, demergers or returns of capital you are undertaking.
Government releases consultation paper on superannuation clearing house & lost members - 14 November 2008
Today the Minister for Superannuation and Corporate Law released a two-part consultation paper entitled Superannuation Clearing House and the Lost Members Framework. The issues canvassed in the paper are far-reaching and will be relevant to employers, superannuation trustees, administrators and custodians.
NSW State Mini-Budget released - 11 November 2008
The Treasurer, the Hon. Eric Roozendaal MLC, has delivered the 2008-09 NSW Mini-Budget to the NSW Parliament today. The Budget seeks to support the State's tax revenue base by deferring some of the state taxes that were shortly due to be abolished and increasing the rate of land tax on certain premium properties.
Tax review of managed investment trust arrangements - 29 October 2008
The Board of Taxation has today released its long awaited “Review of the Tax Arrangements Applying to Managed Investment Trusts” discussion paper which reviews the current regime applying to trusts as collective investment vehicles and assesses possible alternative taxation models.
Legislative amendments to restore the tax treatment of rights issues - 3 October 2008
An Act to restore the original income tax treatment of rights issued by issuing entities to existing shareholders or unitholders to acquire relevant interests in those entities received Royal Assent on 20 September 2008.
Taxation of Financial Arrangements: new exposure draft legislation released - 1 October 2008
On 1 October 2008, the Assistant Treasurer, Chris Bowen MP, released revised exposure draft legislation in the form of the Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2008 and related explanatory material in relation to TOFA Stages 3 and 4 (TOFA). The proposed new TOFA provisions contain a comprehensive set of principles and rules for the tax-timing and character treatment of gains and losses from financial arrangements.
Changes to GST Margin Scheme Rules - 26 September 2008
A Bill setting out a range of proposed margin scheme amendments was yesterday introduced into Parliament. The amendments had previously been announced in May as part of the Federal Budget.
Superannuation for temporary residents - Bills introduced - 26 September 2008
Following an extensive consultation period which commenced with the release of a discussion paper on 5 May 2008, the Government yesterday introduced legislation into the House of Representatives which addresses the number of lost accounts and unclaimed money in the superannuation system which is referable to temporary residents who have departed Australia.
Managed Funds - changes to the eligible investment rules (Division 6C) - 26 September 2008
The Government has introduced into Parliament changes to the rules which govern the types of eligible investment business (eg. investing in land and securities) with which certain ‘public unit trusts’ need to comply in order to maintain their “flow through” character and prevent being taxed as companies (i.e. as public trading trusts - Division 6C).
Australia’s National Innovation Report- Key Points for Corporate Counsel - 11 September 2008
On 9 September 2008, the Federal Government released a major report on Australia’s National Innovation System. The Report was prepared by a panel chaired by Dr Terry Cutler, which included respected economists and research industry experts. This Alert identifies the specific key recommendations and issues raised by the Report which would have a legal impact on major corporations.
ATO changes view on GST and residential development costs - 21 August 2008
The ATO has recently published a new interpretative decision, ATO ID 2008/114, which sets outs its revised view on the entitlement of a developer of "new residential premises", to input tax credits (GST credits) where the developer temporarily leases the premises.
Australian tax system review - Treasury Discussion Paper issued - 6 August 2008
The Federal Government has released the Treasury Discussion Paper on the proposed reform of Australia’s tax system prepared by a team led by Treasury Secretary, Dr Ken Henry. The paper boosts the prospect of a future cut in Australia’s corporate tax rate by emphasising that the Australian rate is now above the OECD average.
Changes to Division 6C - Trading Trusts - 29 July 2008
The release of draft legislation on proposed changes to the operation of the rules for Public Trading Trusts, is likely to cause a widespread review of the investment profile of funds.
New Tax Rules - Distributions of managed investment trust income to foreign investors - 27 June 2008
A new final withholding tax regime has been enacted (Tax Laws Amendment (Election Commitments No.1) Act 2008) which applies to distributions of Australian source net income from Australian managed investment trusts to foreign investors.
Tax highlights - NSW Budget - 3 June 2008
The Treasurer, the Hon Michael Costa, today handed down the NSW Budget. The budget result for 2008-9 is expected to be a surplus of $268 million.
High Court decision overturns GST treatment of forfeited deposits - 22 May 2008
In a unanimous decision, the High Court has held that GST does apply to a forfeited deposit. This overturns the earlier decision of the Full Federal Court, which specified that GST does not apply to a forfeited deposit.
Offshore funds - release of CFC/FIF issues papers - 21 May 2008
The Board of Taxation this week released issues papers on possible reforms to Australia’s foreign source income anti-tax-deferral regimes. The closing date for submissions in relation to the issues papers, and the earlier position paper released on 12 March 2008, is 20 June 2008.
2008-09 Budget changes affecting employee share and option schemes - 15 May 2008
Proposed changes in the 2008-09 Budget may affect both participants and administrators of employee share and option schemes. Participants may be affected by the proposed changes to the election requirements, particularly if they are seeking to obtain the benefit of the 50% capital gains tax (CGT) concession. Administrators of employee option warehouse trusts will welcome the proposed CGT relief to prevent double taxation.
2008 Budget overview - tax highlights at a glance - 13 May 2008
The 2008 - 2009 Budget by the new Labor Government was released this evening Tuesday 13 May 2008. As expected there were a number of major revenue and expenditure measures which will have a significant impact on business.
The Producer Offset: the financier’s perspective - May 2008
The new tax relief system brought in by the Australian Screen Production Incentive introduced a new range of tax measures for the motion picture industry in Australia, consisting of various refundable tax offsets.
Commissioner may not be able to restrict GST refunds - 4 March 2008
The Federal Court decision in KAP Motors Pty Ltd v Commissioner of Taxation [2008] FCA 159 concerns the ability of a taxpayer to recover GST that has mistakenly been paid to the Tax Office in circumstances where the taxpayer has not made a "supply".
Amendments to Taxation treatment of Asset financing: Division 250 Introduced - 17 August 2007
Division 250 contains the long awaited amendments to the taxation treatment of asset financing arrangements between taxpayers and tax preferred end users.
Waiver of Legal Professional Privilege - 7 June 2007
Following on from our recent presentation at the Mallesons Corporate Counsel CPD Program on Legal Professional Privilege and Tax Audits, we wish to advise of a significant case handed down on 29 May 2007 which considered the concept of the waiver of legal professional privilege.
Latest proposed changes to the section 128F interest withholding tax exemption - 16 May 2007
On 10 May 2007, Tax Laws Amendment (2007 Measures No. 3) Bill 2007 (Bill) was introduced to Parliament. The Bill includes proposed amendments which narrow the scope of the interest withholding tax (IWT) exemption in section 128F of the Income Tax Assessment Act 1936 (section 128F exemption) in relation to “debt interests” which are not in the form of debentures.
New changes to Capital Gains Tax for foreign residents - 8 December 2006
On 7 December 2006, the Australian Parliament passed the Tax Laws Amendment (2006 Measures No. 4) Bill 2006. The Act amends the capital gains tax (CGT) provisions of the Income Tax Assessment Act 1997 (Cth) as they relate to foreign residents. The changes take effect from the date of Royal Assent of the Act, which is expected to be on about 15 December 2006.
New South Wales Duties (Abolition of State Taxes) Bill - 19 June 2006
On 6 June 2006, the State Taxes Bill was introduced into the New South Wales Parliament as part of the State Budget. It significantly amends the mortgage duty provisions. These will apply from 1 July 2006 until the abolition of mortgage duty on 1 January 2011. The proposed amendments may impact on deals you are currently doing where securities are to be executed or funding is to be provided on or after 1 July 2006.
Congestion Levy Bill - 10 October 2005
The Congestion Levy Bill 2005 was introduced into the Victorian Parliament on Wednesday 5 October 2005. The levy comes into effect on 1 January 2006 and will affect the owners and operators of car parks in the central Melbourne area.
Banking and finance alert - 22 July 2005
The Treasury introduced the Corporations Amendment Bill (No. 1) 2005 following submissions from industry bodies and Mallesons. The Bill seeks to clarify the liability of directors of corporate trustees when there are insufficient trust assets to discharge the trust's debt, following the controversial decision in Hanel v O'Neill. This alert highlights issues for trustee corporations and directors to consider in light of these proposed amendments.
Commercial property alert - June 2005
The State Revenue Legislation Amendment Bill 2005 was introduced into the New South Wales Parliament last Friday. The Bill is currently being considered by the Lower House of Parliament.
Taxation alert - 24 March 2005
On 17 March 2005, the Federal Government introduced into Parliament the Tax Laws Amendment (2005 Measures No.2) Bill 2005 (Cth) to counter certain residential property planning arrangements. These arrangements use the going concern, farm land, GST grouping, joint venture or associates rules to reduce or eliminate the GST liabilities on the supplies of real property. This Alert outlines these amendments and what developers should be doing now.
Taxation alert - 8 March 2005
GST transitional relief for supplies made under long term non-reviewable contracts will come to an end on 30 June 2005. All such supplies made from 1 July 2005 will be subject to GST. This alert provides an update on our December 2004 publication about the end of GST transitional relief for supplies made under long-term non-reviewable contracts.
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