Income Tax Point-in-Time Service Updates

Wednesday 31 October 2018 @ 10.41 a.m.

The Income Tax Point-in-Time Service has been updated to include the Medicare Levy Amendment (Excess Levels for Private Health Insurance Policies) Act 2018 (Cth) (Act 100 of 2018), the Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Act 2018 (Cth) (Act 109 of 2018), the Education and Other Legislation Amendment (VET Student Loan Debt Separation) Act 2018 (Cth) (Act 116 of 2018), the Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Act 2018 (Cth) (Act 121 of 2018), the Treasury Laws Amendment (Supporting Australian Farmers) Act 2018 (Cth) (Act 123 of 2018), the Treasury Laws Amendment (Tax Integrity and Other Measures) Act 2018 (Cth) (Act 124 of 2018) and the Treasury Laws Amendment (Working Holiday Maker Employer Register) Act 2018 (Cth) (Act 125 of 2018).

Act 100 of 2018

This Act amends the Medicare Levy Act 1986 to provide that the maximum voluntary excess level a policy can have to exempt the holder from the Medicare Levy Surcharge is set out in the Private Health Insurance Act 2007.
The Act also removes grandfathering provisions that provided the Medicare Levy Surcharge exemption for certain health insurance policies that pre-date the commencement of the Private Health Insurance Act 2007. Individuals will need to migrate to a policy that has an excess no more than the new maximum in order to be eligible for the Medicare Levy Surcharge exemption.

Act 109 of 2018

This Act amends the tax law to extend by 12 months to 30 June 2019 the period during which small business entities can access expanded accelerated depreciation rules. This extension provides a boost to small business activity and investment for another year.

Act 116 of 2018

The principal purpose of the Education and Other Legislation Amendment (VET Student Loan Debt Separation) Act 2018 (the Act) is to separate VET student loan debts from other forms of Higher Education Loan Program debts (HELP debts) and establish VET student loans as a separate income contingent loan administered under the VET Student Loans Act 2016 (VSL Act). The amendments in the Act operate together with amendments in the Student Loans (Overseas Debtors Repayment Levy) Amendment Act 2018.

The Act also amends the VSL Act to allow the courses and loan caps determination made by the Minister by legislative instrument under subsection 16(1) of the VSL Act (currently the VET Student Loans (Courses and Loan Caps) Determination 2016)), to incorporate, by reference, any matter contained in an instrument or other writing as in force from time to time.

Act 121 of 2018

Schedule 1 to this Act prohibits the production, distribution and possession of sales suppression tools in relation to entities that have Australian tax obligations. Schedule 1 also prohibits the use of electronic sales suppression tools to incorrectly keep tax records.

Schedule 2 to this Act requires entities providing courier or cleaning services that have an ABN to report to the ATO information about transactions that involve engaging other entities to undertake those courier or cleaning services for them.

Act 123 of 2018

An Act to allow 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. This will assist primary producers by making it easier to invest in and stockpile fodder.    

Act 124 of 2018

Schedule 1 to this Act amends the Income Tax Assessment Act 1936 (ITAA 1936) to ensure that the multinational anti-avoidance law applies appropriately to artificial or contrived arrangements involving trusts and partnerships entered into by multinational entities to avoid the taxation of business profits in Australia.

Schedule 2 to the Act amends the Income Tax Assessment Act 1997 (ITAA 1997) to include additional conditions that must be satisfied to apply the small business CGT concessions to capital gains. The new conditions ensure that the small business CGT concessions in Division 152 of the ITAA 1997 are only available for CGT assets that are either used or held ready for use in the course of a small business or are an interest in a small business.

Schedule 3 to the Act amends the income tax law and the Venture Capital Act 2002 to ensure that the venture capital tax concessions are available for investments in fintech businesses.

Schedule 4 to this Act amends the ITAA 1997 to exempt from income tax, payments received from the Commonwealth as reparation for abuse by Australian Defence Force personnel.

Act 125 of 2018

The Act gives effect to the Government’s commitment that:

  • employer registration information about working holiday maker employers will not be made publicly available; and
  • the Commissioner of Taxation will only be able to disclose protected information to the Fair Work Ombudsman for an entity that is actually or is reasonably suspected of non-compliance with a taxation law.

The amendments made by these Acts have been updated in the Point-in-Time Income Tax Service current to 23 October 2018. (NB: subscription required).

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