Income Tax Point-in-Time Service Updates

Tuesday 5 December 2023 @ 2.25 p.m.

The Income Tax Point-in-Time Service has been updated to include the Treasury Laws Amendment (2023 Measures No. 1) Act 2023 (Cth) (Act No 101 of 2023) and the Disability Services and Inclusion (Consequential Amendments and Transitional Provisions) Act 2023 (Cth) (Act No 103 of 2023).

Act 101 of 2023

This Act amends the law relating to corporations, financial services, sustainability standards and taxation, and for related purposes. Schedule 1 to the Act makes various technical amendments to the Corporations Act 2001 (Cth), including amendments to:

  • allow ASIC to approve applications from one or more licensees to register on the Financial Advisers Register the same relevant provider; and
  • allow assisted decision-making to be used for any purpose for which ASIC may make decisions in the performance or exercise of ASIC's functions or powers to register a relevant provider.

Schedule 2 to the Act amends the Australian Securities and Investments Commission Act 2001 (Cth) in order to confirm the functions and responsibilities of the Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board (AUASB) and the Financial Reporting Council (FRC).

Schedule 3 to the Act implements various recommendations of the Independent Review of the Tax Practitioners Board (TPB), including recommendations to update and modernise the objects clause of the Tax Agent Services Act 2009 (Cth) and to create financial independence for the TPB from the Australian Taxation Office. It is intended that these amendments will improve the effectiveness and independence of the TPB, enhance community confidence, and support high standards in the tax profession whilst streamlining the regulation of tax practitioners.

Schedule 4 to the Act improves the integrity of the income tax system by aligning the tax treatment of off-market share buy-backs undertaken by listed public companies with the tax treatment of on-market share buy-backs. It also amends the income tax law in respect of selective share cancellations to ensure alignment of tax treatment across capital management activities for listed public companies.

Schedule 5 to the Act amends the Income Tax Assessment Act 1997 (Cth) to prevent certain distributions that are funded by capital raisings from being frankable. This ensures that arrangements cannot be put in place to release franking credits that would otherwise remain unused where they do not significantly change the financial position of the entity.

Act 103 of 2023

This Act makes various amendments to existing Commonwealth legislation that are consequential to the repeal of the Disability Services Act 1986 (Cth) (the DS Act) and its replacement by the Disability Services and Inclusion Act 2023 (Cth) (the DSI Act), which received the Royal Assent on 4 December 2023.

The Act also sets out savings provisions and transitional arrangements for the transition period between the repeal of the DS Act and the implementation of the DSI Act. Critically, grant agreements made under the DS Act will continue to operate under the provisions of the DS Act until they conclude. All new grant agreements and financial arrangements will be made under the DSI Act.

These amendments have been updated in the Point-in-Time Income Tax Service current to 5 December 2023 (NB: subscription required).

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