Tax news, views & clues – July 2017

  • Higher education HELP changes announced – A package of reforms affecting the Higher Education Loan Program (HELP) is expected to take effect generally from 1 January 2018.
  • Super reforms from 1 July 2017 – Superannuation changes related to the new $1.6 million transfer balance cap are now coming into effect.
  • Draft legislation: LRBA integrity measures for pension cap – Exposure draft legislation has been released proposing integrity measures for limited recourse borrowing arrangements (LRBAs) as part of the super reforms.
  • Senate Committee holds corporate tax avoidance hearing – A public hearing was recently held in Perth as part of the inquiry into corporate tax avoidance and minimisation.
  • Higher education HELP changes: faster repayments and threshold changes – The Minister for Education and Training has announced a package of higher education reforms to be confirmed in the Federal Budget.
  • Deductions for super funds: major ruling update – The ATO has issued Addendum to Taxation Ruling TR 93/17 to clarify and update the Commissioner’s views on deductions available for superannuation funds.
  • Bill to reduce corporate tax rate – The Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 has been introduced.
  • Budget updates – Information about the announcements on introducing a charge for foreign owners of under-used residential property, restricting foreign ownership within new developments and introducing tougher residency rules for pensioners.
  • Transfer pricing – The Full Federal Court has found Chevron Australia’s loan arrangement with a related US company was not at arm’s length. The ATO has also released draft information about its compliance approach to related-party financing arrangements.
  • Car expenses for transporting equipment disallowed – A taxpayer been denied deductions for work-related car expenses.
  • Draft legislation: financial complaints and dispute resolution – A new one-stop shop for financial disputes, the Australian Financial Complaints Authority (AFCA), will be established.