Bills being considered by the House of Representatives
Tax Laws Amendment (Special Conditions for Not-For-Profit Concessions) Bill 2012
This Bill was introduced into the House on 22 August 2012.
The Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Bill 2012 will:
- Re-state the 'in Australia' special conditions for income tax exempt entities, ensuring that they generally must be operated principally in Australia and for the broad benefit of the Australian community (with some exceptions).
- Standardise the other special conditions entities must meet to be income tax exempt, such as complying with all the substantive requirements in their governing rules and being a 'not-for-profit' entity (with some exceptions).
- Standardise the term 'not-for-profit', replacing the defined and undefined uses of 'non-profit' throughout the tax laws.
- Codify the 'in Australia' special conditions for deductible gift recipients ensuring that they must generally operate solely in Australia, and pursue their purposes solely in Australia (with some exceptions, such as overseas aid funds and some environmental organisations).
Tax Laws Amendment (2012 Measures No. 6) Bill 2012
This Bill was introduced into the House on 29 November 2012.
The Tax Laws Amendment (2012 Measures No. 6) Bill 2012 will:
- Make clear that native title benefits are not subject to income tax (including capital gains tax).
- Update the list of deductible gift recipients (DGRs) by adding two entities as DGRs and extending the listing of another three entities.
- Extend the immediate deductibility of exploration expenditure provided to mining and petroleum explorers to geothermal energy explorers.
- Extend the interim streaming rules for managed investment trusts until the commencement of the new tax system for managed investment trusts.
- Apply an income test to the rebate for medical expenses from 1 July 2012.
- Clarify that the definition of 'limited recourse debt' includes arrangements where, in substance or effect, the debtor is not fully at risk in relation to the debt.
- Remove the concessional fringe benefits tax treatment for in-house fringe benefits accessed by way of salary packaging arrangements.
- Make miscellaneous amendments to the taxation laws and regulations as part of the Government's commitment to uphold the integrity of the taxation system.
International Tax Agreements Amendment Bill 2012
This Bill was introduced into the House on 29 November 2012.
The International Tax Agreements Amendment Bill 2012 will:
- Give the force of law in Australia to the Protocol Amending the Agreement between the Government of Australia and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (Indian Protocol), which was signed in New Delhi on 16 December 2011.
- Give the force of law in Australia to the Agreement between the Government of Australia and the Government of the Republic of the Marshall Islands for the Allocation of Taxing Rights with Respect to Certain Income of Individuals and to Establish a Mutual Agreement Procedure in Respect of Transfer Pricing Adjustments (Marshall Islands Agreement), which was signed in Majuro on 12 May 2010.
- Give the force of law in Australia to the Agreement between the Government of Australia and the Government of the Republic of Mauritius for the Allocation of Taxing Rights with Respect to Certain Income of Individuals and to Establish a Mutual Agreement Procedure in Respect of Transfer Pricing Adjustments (the Mauritius Agreement), which was signed in Port Louis on 8 December 2010.
- Amends the Agreements Act 1953 to update certain references to some of Australia's existing taxation agreements.
Superannuation Legislation Amendment (Reducing Illegal Early Release and Other Measures) Bill 2012 and Income Tax Rates Amendment (Unlawful Payments from Superannuation Funds) Bill 2012
These Bills were introduced into the House on 29 November 2012.
The Superannuation Legislation Amendment (Reducing Illegal Early Release and Other Measures) Bill 2012 and Income Tax Rates Amendment (Unlawful Payments from Superannuation Funds) Bill 2012 will.
- Provides for civil and criminal penalties for the promotion of illegal early release schemes.
- The amendment provides that a new designated service be included to capture the roll-over of funds from a superannuation fund that is not a self managed superannuation fund (SMSF) (the transferring fund) to an SMSF (the receiving fund).
- provides for administrative consequences for contraventions relating to SMSFs by introducing powers for the Commissioner of Taxation to issue rectification and education directions and to establish an administrative penalty regime for SMSF trustees for certain contraventions of the SIS Act.
- The Income Tax Rates Amendment (Unlawful Payments from Regulated Superannuation Funds) Bill 2012 amends the law to ensure that superannuation benefits received in breach of legislative requirements are taxed at 45 per cent.
Bills being considered by the Senate
Nil.
Bills awaiting Royal Assent
Nil.