GST Point-in-Time Service Updates

The GST Point-in-Time Service has been updated to include the Treasury Laws Amendment (2018 Measures No. 5) Act 2019 (Cth) (Act 15 of 2019), the Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 (Cth) (Act 16 of 2019), the Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Act 2019 (Cth) (Act 34 of 2019), the Treasury Laws Amendment (2019 Measures No. 1) Act 2019 (Cth) (Act 49 of 2019), the new principal A New Tax System (Goods and Services Tax) Regulations 2019; and the Treasury Laws Amendment (Goods and Services Tax) Regulations 2019, the Treasury Laws Amendment (Professional Standards Schemes) Regulations 2019 and the Taxation Administration Amendment (Serious Financial Crime Taskforce) Regulations 2019.

Act 15 of 2019

Schedule 1 to this Act amends income tax Acts to make a number of technical refinements to the income tax law so that the new tax system for managed investment trusts operates as intended.

Schedule 4 repeals subsection 51(3) of the Competition and Consumer Act 2010 (CCA) and subsection 51(3) of Schedule 1 to the CCA (the Competition Code). The amendments remove the exemption for conditional licensing or assignment of IP rights such as patents, registered designs, copyright or eligible circuit layout rights from prohibitions on restrictive trade practices.

Schedule 5 makes changes relating to small business access to justice.

Act 16 of 2019

The Act contains amendments that will protect individuals' retirement savings from erosion, ultimately increasing Australians’ superannuation balances.

Schedule 1 to this Act prevents trustees of superannuation funds from charging certain fees and costs exceeding 3 per cent of the balance of a MySuper or choice product annually where the balance of the account is below $6,000.

Schedule 2 to this Act prevents trustees from providing opt out insurance to new members aged under 25 years, members with balances below $6,000 and members with inactive MySuper or choice accounts, unless a member has directed otherwise, or they are engaged in a dangerous occupation.

Schedule 3 to this Act requires the transfer of all superannuation savings with balances below $6,000 to the Commissioner if an account, related to a MySuper or choice product has been inactive for a continuous period of 13 months.

Act 34 of 2019

Schedules 1 and 5 to this Act amend the ITAA 1997, the ITAA 1936 and the TAA 1953 to improve the integrity of the income tax law for arrangements involving stapled structures and to limit access to tax concessions for foreign investors by increasing the MIT withholding rate on fund payments that are attributable to non-concessional MIT income to 30 per cent.
An amount of a fund payment will be non-concessional MIT income if it is attributable to income that is:

• MIT cross staple arrangement income; 
• MIT trading trust income;
• MIT agricultural income; or
• MIT residential housing income.

Schedule 2 to this Act amends the ITAA 1997 to improve the integrity of the income tax law by modifying the thin capitalisation rules to prevent double gearing structures.

Schedule 3 to this Act amends the ITAA 1936 to improve the integrity of the income tax law to limit access to tax concessions for foreign investors by limiting the withholding tax exemption for superannuation funds for foreign residents.

Schedule 4 to this Act will amend the ITAA 1936 and the ITAA 1997 to improve the integrity of the income tax law to limit access to tax concessions for foreign investors by codifying and limiting the scope of the sovereign immunity tax exemption.

Act 49 of 2019

Schedule 2 of this Act and the Excise Tariff Amendment (Supporting Craft Brewers) Act 2019amend the Excise Tariff Act and the Excise Act to extend concessional rates of excise to brewers that supply draught beer in kegs or other containers that have a capacity of 8 litres or more that are designed for use with a pressurised gas delivery system or pump delivery system.

Schedule 3 to the Act amends the ITAA 1997 to continue to provide the Global Infrastructure Hub Ltd (the Hub) with an exemption from the liability to pay income tax on its ordinary and statutory income.

Schedule 4 to the Act makes a number of miscellaneous amendments to legislation in the Treasury portfolio. These amendments are part of the Government’s commitment to the care and maintenance of the Treasury portfolio legislation. These amendments make minor technical changes to correct spelling errors, bring provisions in line with drafting conventions and repeal inoperative provisions. The Schedule also makes minor technical amendments to remove administrative inefficiencies and clarifies the law to ensure that it operates in accordance with policy intent.

A New Tax System (Goods and Services Tax) Regulations 2019

The purpose of the A New Tax System (Goods and Services Tax) Regulations 2019 (the Regulations) is to remake and improve the operation of the A New Tax System (Goods and Services Tax) Regulations 1999 before they ‘sunset’.

The Regulations remake and improve the A New Tax System (Goods and Services Tax) Regulations 1999 by repealing redundant provisions, simplifying language and restructuring provisions for ease of navigation.

The Regulations broadly follow the numbering of the 1999 Regulations.

Treasury Laws Amendment (Goods and Services Tax) Regulations 2019

These regulations repeal the A New Tax System (Goods and Services Tax) Regulations 1999 before they sunset on 4 April 2019, and amend the A New Tax System (Wine Equalisation Tax) Regulations 2000 and the Customs Regulation 2015 to make consequential amendments to reflect the replacement of those regulations with the A New Tax System (Goods and Services Tax) Regulations 2019.    

Treasury Laws Amendment (Professional Standards Schemes) Regulations 2019

These regulations update the list of prescribed professional schemes that have capped civil liability for misleading and deceptive conduct under the Australian Securities and Investments Commission Act 2001, the Competition and Consumer Act 2010 and the Corporations Act 2001. This provides consistency across Commonwealth and state and territory laws.    

Taxation Administration Amendment (Serious Financial Crime Taskforce) Regulations 2019

This instrument amends the Taxation Administration Regulations 2017 to prescribe the Serious Financial Crime Taskforce. The Serious Financial Crime Taskforce has been extended for a further four years from 1 July 2019 and will now be formally led by the Australian Taxation Office. The amendments made by Schedule 1 to the Regulations enable the ongoing disclosure of information between taskforce agencies under the new governance arrangements. 

These amendments and the new principal Regulation have been updated in the Point-in-Time GST Service current to 10 May 2019. (NB: Subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.