Income Tax Point-in-Time Service Updates

Friday 13 December 2019 @ 3.28 p.m.

The Income Tax Point-in-Time Service has been updated to include the Medical and Midwife Indemnity Legislation Amendment Act 2019 (Act No 105 of 2019) and the Treasury Laws Amendment (International Tax Agreements) Act 2019 (Act No 107 of 2019).

Act 105 of 2019

The Medical and Midwife Indemnity Legislation Amendment Act 2019 gives effect to the Government’s commitment in the 2018-19 Mid-Year Economic and Fiscal Outlook (MYEFO) to maintaining and improving the Indemnity Insurance Fund (IIF), supporting the long-term stability and affordability of medical indemnity premiums for medical practitioners, while ensuring health care quality, patient safety and the sustainability of the overall medical system.

The Act makes amendments to:

  • simplify the current legislative structure underpinning the Government’s support for medical indemnity insurance;
  • repeal redundant legislation;
  • remove the existing contract requirements for the Premium Support Scheme (PSS) and incorporate the necessary requirements in legislation;
  • require all medical indemnity insurers to provide universal cover to medical practitioners;
  • maintain support for high cost claims and exceptional claims made against allied health professionals and enable exceptional cost claims to be made, which is provided for in a separate scheme to medical practitioners;
  • support high cost claims and exceptional cost claims made against private sector employee midwives not covered under the MPIS;
  • clarify eligibility for the Run-off Cover Schemes (ROCS) and permit access for medical practitioners and eligible midwives retiring before the age of 65;
  • cause an actuarial assessment to report on the stability and affordability of Australia’s medical indemnity market, with the report to be laid before each House of Parliament; and
  • streamline reporting obligations and improve the capacity for monitoring and information sharing.

Act 107 of 2019

On 28 March 2019, Australia and Israel signed a new tax treaty, which reduces tax impediments to bilateral trade and investment. In particular, the tax treaty alleviates double taxation by lowering withholding tax rates (on cross border interest, dividend and royalty payments) and also includes OECD/G20 base erosion and profit shifting (BEPS) recommendations to target international tax avoidance practices.

This Act amends the Agreements Act to give force of law to the Convention between the Government of Australia and the Government of the State of Israel for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (the Convention). This process is part of Australia’s domestic procedure for implementing its tax treaties.

This Act also introduces a domestic source of income rule to ensure that Australia can exercise its taxing rights under the Convention and future international tax agreements.

These new amendments have been updated in the Point-in-Time Income Tax Service current to 11 December 2019. (NB: subscription required).

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