Scott Morrison’s second budget contained a number of changes to current tax legislation, with tax integrity a key priority for the next 12 months.
Here’s our round up of the most significant developments:
- The multinational anti-avoidance law will be amended to prevent the use of foreign trusts and partnerships in corporate structures for tax minimisation, with retrospective effect from 1 January 2016.
- Hybrid mismatch rules used by banks to minimise tax in cross border transactions will be prohibited from 1 January 2018.
- The government will provide $28.2m to the ATO to target serious and organised crime in the tax system. The ATO’s Black Economy Taskforce audit and compliance activities will be extended until 30 June 2018.
- The taxable payments reporting system will be extended to contractors in the courier and cleaning industries from 1 July 2018.
- Sales suppression technology and software, used to understate business income by deleting electronic transactions, will be prohibited.
- The $20,000 instant asset write-off for small business will be extended by 12 months to 30 June 2018, for businesses with an aggregated annual turnover of less than $10m.
- Access to the small business CGT concessions will be tightened from 1 July 2017 to deny eligibility for assets which are unrelated to the small business.
- The use of limited recourse borrowing arrangements will be included in a member’s total superannuation balance and transfer balance cap from 1 July 2017.
- Businesses that employ foreign workers on certain skilled visas will be required to pay a levy that will provide revenue for a new Skilling Australians Fund from March 2018.
Wolters Kluwer is hosting two webinars for tax and accounting professionals looking for a more detailed debrief on the implications of this year’s budget: 2017 Budget General Tax Overview (16 May) and 2017 Budget Top Tax Takeaways for Accountants in Practice (18 May). Spots are filling up fast register now!