Income Tax Point-in-Time Service Updates

The Income Tax Point-in-Time Service has been updated to include the latest amendments from the following Acts:

• Family Assistance Legislation Amendment (Jobs for Families Child Care Package) Act 2017 (Act 22);

• Treasury Laws Amendment (2016 Measures No. 1) Act 2017 (Act 25);

• Treasury Laws Amendment (2017 Measures No. 1) Act 2017 (Act 26); and

• Treasury Laws Amendment (Combating Multinational Tax Avoidance) Act 2017 (Act 27).

Act 22 of 2017

The purpose of the Act is to introduce key aspects of the Jobs for Families Child Care Package announced in the 2015-16 Budget. The Act will, through the introduction of a new Child Care Subsidy (CCS), and enhancements to the operating requirements of approved child care providers, support improved affordability, accessibility and flexibility to child care for families and support families’ engagement with the workforce. 

Recognising the needs of vulnerable and disadvantaged families, and the benefits that a quality child care and early learning can have on children’s early development, the Act also introduces the Additional Child Care Subsidy (ACCS). ACCS provides improved and targeted support to those families who require it most, such as: families with children at risk of serious abuse or neglect; families experiencing temporary financial hardship; grandparent carers; parents seeking to return to work; and low-income households.

The Act comprises:

Schedule 1—Main Amendments 

Amendments to the A New Tax System (Family Assistance) Act 1999 will improve the affordability, accessibility and flexibility of child care for families through:
a new simpler Child Care Subsidy (CCS) to improve affordability. The CCS will replace the current poorly targeted child care subsidies with the objective of supporting parents who want to work or work more. 

Amendments to the A New Tax System (Family Assistance) (Administration) Act 1999 will improve the availability of flexible care arrangements to suit the needs of families by ensuring greater access and choice in care options from a broader range of service types (including for example provisions that could enable the capacity to pay subsidies in future for care provided by nannies following the Nanny Pilot Programme).

Schedule 2—Contingent and consequential amendments

This Schedule contains amendments contingent on the passage of other Acts currently before Parliament.

This Schedule also contains provisions to ensure that related legislation such as the A New Tax System (Goods and Services Tax) Act 1999 , the Fringe Benefits Assessment Act 1986 and the Income Tax Assessment Act 1997 align with the changes to family assistance law through minor consequential amendments.

Schedule 3—other amendments

This Schedule contains amendments that commence on Royal Assent or from 1 July 2016. Among other matters, the Schedule enables the Secretary to reassess service approvals at any time from 1 July 2016. Schedule 3 also closes enrolment advances and allows for their recovery.

Schedule 4—Application, saving and transitional amendments

This Schedule contains provisions relating to: the cessation date of eligibility to CCB and CCR and the commencement of CCS and ACCS; the saving of certain laws in relation to CCB and CCR (to ensure, for example, that debts and reviews can continue to be dealt with); and transitional provisions to enable existing claimants and recipients to be eligible for CCS and for services to transition to the CCS system from 3 July 2017.

Act 25 of 2017

An Act to amend the law relating to insurance, corporations, taxation and financial services, and for related purposes.

Act 26 of 2017

Schedule 1 to this Act makes minor technical changes to the income tax law to ensure the National Innovation and Science Agenda measures contained in Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 operate in accordance with their original policy intent.

Act 27 of 2017

Schedule 1 to this Act amends the Income Tax Assessment Act 1936 (ITAA 1936) , the Taxation Administration Act 1953 (TAA 1953) and associated Acts to introduce a new diverted profits tax (DPT). If the DPT applies, the Diverted Profits Tax Act 2017 will impose tax on the amount of the diverted profit at a rate of 40 per cent.

The DPT aims to ensure that the tax paid by significant global entities properly reflects the economic substance of their activities in Australia and aims to prevent the diversion of profits offshore through contrived arrangements. It will also encourage significant global entities to provide sufficient information to the Commissioner of Taxation (Commissioner) to allow for the timely resolution of tax disputes.

The amendments made by Acts 22, 25, 26 and 27 of 2017 have been updated in the Point-in-Time Income Tax Service current to 18 April 2017. (NB: Subscription required).

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