TAXTALK MONTHLY KEEPING YOU UP TO DATE ON THE LATEST AUSTRALIAN AND INTERNATIONAL TAX DEVELOPMENTS - PWC AUSTRALIA
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www.pwc.com.au TaxTalk Monthly Keeping you up to date on the latest Australian and international tax developments May 2020
TaxTalk Monthly
Corporate Tax Update
COVID-19 and R&D incentive If the company meets the criteria it will need to
The Department of Industry, Science, Energy and lodge the schedule even if it has no disclosures.
Resources have provided the following research and Note also that the ATO is no longer notifying
developments (R&D) updates in light of COVID-19: taxpayers of their obligation to lodge the
RTP Schedule.
• Advance & Overseas Findings and COVID-19 –
The Department will accept a ‘provisional’ Inquiry into the Development of
Advance or Overseas Finding application for the
1 July 2019 – 30 June 2020 income year, due on
the Australian Corporate Bond
30 June 2020. Market
• COVID-19 and R&D registration extensions – The Standing Committee on Tax and Revenue will
The Department will accept registration inquire into and report on the Development of the
applications for 30 June 2019 (otherwise due Australian Corporate Bond Market. The Inquiry
on 30 April 2020) until 30 September 2020. will examine:
Reportable tax position 2020 • the tax treatment of corporate bonds for both
The ATO has released the 2020 Reportable Tax issuers and investors to determine whether there
Position (RTP) instructions which includes changes to are any impediments in the tax system to the
the definition of a public company, the term foreign- issue of corporate bonds compared to other
owned company and the term majority controlling forms of debt financing for business;
interest have also been defined. The 2020 RTP • related impediments within the Corporations Act
Schedule is required to be completed if the company is: to the further development of the corporate bond
• lodging a company tax return for the year ending market, including how they interact with the tax
30 June 2020 or later system; and
• is a public company or a foreign-owned company • comparable policy settings in other jurisdictions,
• has total business income of either with a focus on those jurisdictions that are major
sources of debt finance for companies operating
– AUD250 million or more in the current year
in Australia.
– AUD25 million or more in the current year and
The Committee is seeking submission by
is part of a public or foreign owned economic
28 May 2020.
group with total business income of
AUD250 million or more in the current year
or the immediate prior year.
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Chris Morris, Sydney Michael Bona, Brisbane Warren Dick, Sydney
Australian Tax Leader Global Tax Leader Tax Reporting & Strategy Leader
+61 (2) 8266 3040 +61 (7) 3257 5015 +61 (2) 8266 2935
chris.morris@pwc.com michael.bona@pwc.com warren.dick@pwc.com
Sarah Hickey, Sydney James O’Reilly, Brisbane Jason Karametos, Melbourne
Sydney Tax Market Leader Brisbane Tax Leader Industries Tax Leader
+61 (2) 8266 1050 +61 (7) 3257 8057 +61 (3) 8603 6233
sarah.a.hickey@pwc.com james.oreilly@pwc.com jason.karametos@pwc.com
Kirsten Arblaster, Melbourne Rob Bentley, Perth Alistair Hutson, Adelaide
Melbourne Tax Leader Perth Tax Leader Partner
+61 (3) 8603 6120 +61 (8) 9238 5202 +61 (8) 8218 7467
kirsten.arblaster@pwc.com robert.k.bentley@pwc.com alistair.hutson@pwc.com
Liam Collins, Melbourne Rebecca Cohen, Sydney Amy Etherton, Newcastle
Financial Services Tax Leader IUR Tax Leader Partner
+61 (3) 8603 3119 +61 (2) 8266 8476 +61 (2) 4925 1175
liam.collins@pwc.com rebecca.cohen@pwc.com amy.etherton@pwc.com
May 2020
PwC 2TaxTalk Monthly
Employment Taxes Update
JobKeeper measures now apply Superannuation Guarantee
On 30 March 2020, the Federal Government amnesty now law
announced the “JobKeeper” program, which broadly Legislation providing the once-off amnesty for
comprises a wage subsidy to help businesses keep Superannuation Guarantee (SG) non-compliance,
staff employed in the midst of the economic backdated to the original amnesty start date of
challenges arising from Coronavirus (COVID-19). 24 May 2018 has been enacted. Affected employers
The subsidy of AUD1,500 per fortnight, per eligible can take advantage of the amnesty which will cover
employee, will be paid to many affected employer SG contribution entitlements referable to the period
types (including not-for-profits and charities) and from 1 July 1992 through to 31 March 2018 provided
self-employed individuals (businesses without that voluntary disclosure is made to the Australian
employees), with effect from 30 March 2020, Taxation Office (ATO) in the period up to
who qualify. 7 September 2020. For further details on the
Following the enactment of the relevant legislation SG amnesty refer to our TaxTalk Alert.
and Rules, the JobKeeper program is now However, as a result of COVID-19, an employer’s
operative. Potentially affected employers should circumstances may change that might result in them
assess their eligibility, as well as for their not being able to pay the resulting SG liability. In this
employees, and if applicable, take steps to enrol in respect the ATO has indicated that it will work with
the program and implement and satisfy the various an affected employer to establish a flexible payment
conditions which must be satisfied in order to plan which may include the ability to extend the
remain eligible. payment plan to beyond 7 September 2020
For the latest up to date information refer to our (although it is important to note that only SG
JobKeeper payments webpage. shortfall payments made under the amnesty by
7 September 2020 will be deductible).
Payroll tax relief measures in
response to COVID-19 Salary sacrifice arrangements and
The States and Territories of Australia have super guarantee
announced their own stimulus packages to support The ATO has issued Guidance Note GN 2020/1 for
businesses impacted by COVID-19, with all offering employers, payroll software providers and
some form of relief in relation to payroll tax deferrals intermediaries who may need to change the way
and/or waivers. In addition, South Australia and they calculate SG due to new law that ensures
Western Australia have moved to ensure that the employers cannot reduce their SG obligations by
Federal Government’s JobKeeper payments will be taking advantage of contributions made by
exempt from payroll tax employees who have salary sacrifice arrangements.
For the latest up to date information refer to our Specifically, under the new law which applies from
State Tax COVID-19 updates webpage. 1 January 2020, the minimum amount of SG is
calculated on an employee’s ordinary time earnings
Cash Flow Boost measures for (OTE) base which is the sum of the employee’s
small to medium employers OTE and any OTE amounts they sacrifice in return
for super contributions. Additionally, super
As noted in our Legislative Update, the “cash flow
contributions to an employee’s fund under an
boost” program (enacted by the Boosting Cash Flow
effective salary sacrifice arrangement no longer
for Employers (Coronavirus Economic Response
count towards the SG obligations.
Package) Act 2020) is now available to provide to a
small or medium business employer entity with Update on draft ruling on car
aggregated turnover of less than AUD50 million, or
a charity or other not-for-profit employer entity of parking fringe benefits
equivalent size, with an automatic payment or credit The ATO has indicated that it will defer the
of at least AUD20,000 and up to AUD100,000 on application of Draft Taxation Ruling TR 2019/D5
activity statement obligations from March 2020 which provides revised guidance on car parking
through to September 2020. fringe benefits. Any changes in the ATO view from
For further details refer to our COVID-19 business TR 96/26 will now apply from 1 April 2021. The ATO
measures webpage. has recognised that employers will require time to
implement these changes following finalisation of
May 2020
PwC 3TaxTalk Monthly
the Ruling. For a summary of the key issues raised Productivity Commission in its report on remote area
by TR 2019/D5 refer to our TaxTalk Alert. tax concessions and payments.
FBT rates and thresholds for Single touch payroll exemption for
2020-21 certain small employers
The Australian Taxation Office (ATO) has released Draft Taxation Administration – Single Touch Payroll
the following tax determinations which provide the – 2020-21 year Withholding Payer Number
fringe benefits tax (FBT) rates and thresholds for the Exemption 2020 STP 2020/D2 proposes to exempt
2020-21 FBT year commencing on 1 April 2020: certain entities that do not have an Australian
• TD 2020/3 which provides the rates to be applied business number (ABN) but instead have a
on a cents per kilometre basis for calculating the withholding payer number (WPN) from reporting
taxable value of a fringe benefit arising from the under Single Touch Payroll (STP). Once
private use of a motor vehicle other than a car. finalised the exemption is expected to apply from
1 July 2020. Comments are due on 14 May 2020.
• TD 2020/4 which sets out the amounts that the
Commissioner of Taxation considers reasonable High Court refuses special leave
for food and drink expenses incurred by in SA payroll tax exemption case
employees receiving a living-away-from-home
allowance (LAFHA) fringe benefit. The High Court has refused the taxpayer’s
application for special leave to appeal against the
Productivity Commission decision of the Full Supreme Court of SA in South
recommendations on remote area Australian Employers’ Chamber of Commerce and
Industry Incorporated v Commissioner of State
concessions Taxation. In this matter the Supreme Court
Given the challenges faced by regional Australia, dismissed the taxpayer’s appeal against the
including as a result of the impacts of the recent disallowance of an objection concerning whether the
drought, bushfires and the Coronavirus, the Federal taxpayer was exempt from payroll tax under the
Government has announced that it will not be acting charitable purpose exemption in the Payroll Tax
on the various recommendations made by the Act 2009 (SA).
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Katie Lin, Sydney Rohan Geddes, Sydney Greg Kent, Melbourne
Partner Partner Partner
+61 (2) 8266 1186 +61 (2) 8266 7261 +61 (3) 8603 3149
katie.f.lin@pwc.com rohan.geddes@pwc.com greg.kent@pwc.com
Anne Bailey, Melbourne Stephanie Males, Canberra Maria Ravese, Adelaide
Partner Partner Partner
+61 (3) 8603 6818 +61 (2) 6271 3414 +61 (8) 8218 7494
anne.m.bailey@pwc.com stephanie.males@pwc.com maria.a.ravese@pwc.com
Paula Shannon, Brisbane Lisa Hando, Perth
Partner Partner
+61 (7) 3257 5751 +61 (8) 9238 5116
paula.shannon@pwc.com lisa.hando@pwc.com
May 2020
PwC 4TaxTalk Monthly
Global Tax Update
Latest news from international tax and transfer pricing
Practical aspects of COVID-19 Temporary changes to Australia’s
create new cross-border issues foreign investment framework
COVID-19 presents significant challenges to people In response to the COVID-19 crisis, the Australian
and organisations around the globe and the Treasurer, the Hon Josh Frydenberg. announced
disruption continues to evolve. With international that there is now no threshold amount which applies
travel restrictions one of the first measures in determining whether a particular foreign
implemented not just in Australia, but globally, this investment made on or after 10:30 pm (AEDT)
created specific tax issues with individuals or Sunday, 29 March 2020 is subject to Australia’s
businesses needing to relocate their work activities. foreign investment framework. Furthermore, to
Of particular relevance is the practical approach ensure sufficient time for screening applications, the
taken by the Australian Taxation Office (ATO) in Australian Foreign Investment Review Board (FIRB)
relation to: will work with existing and new applicants to extend
• Corporate tax residency – if the only reason a timeframes for reviewing applications from 30 days
foreign company is holding board meetings in to up to six months. These are temporary measures
Australia or directors are attending board that will remain in place for the duration of the
meetings from Australia, is because of impacts of current crisis. FIRB has also published Questions &
COVID-19, then the Commissioner will not apply Answers on these temporary changes.
compliance resources to determine if the entity’s High Court finds sufficient
central management and control is in Australia.
influence
• Permanent establishments – if a foreign
company did not otherwise have a permanent On 11 March 2020, the High Court of Australia
establishment in Australia before the impacts of handed down its decision in BHP Billiton Ltd (now
COVID-19, and the presence of the employees BHP Group Ltd) and Commissioner of Taxation,
in Australia is because they are temporarily unanimously dismissing the taxpayer’s appeal. This
relocated or restricted in their travel as a case concerned the application of the controlled
consequence of COVID-19, then the foreign company (CFC) provisions to the taxpayer in
Commissioner will not apply compliance respect of the activities of a Swiss marketing entity.
resources to determine if the foreign company Broadly, the Court had to consider whether the
has a permanent establishment in Australia. taxpayer, a UK based Plc, the marketing entity and
the Australian subsidiaries of Plc were “associates”
Businesses are also impacted in relation to for tax purposes. The Court found that relevant group
impairment of assets due to the economic companies were “associates” because there was the
consequences and/or seeking additional debt or requisite level of “sufficient influence”. The ATO has
equity, all of which can give rise to additional tax also released a statement in response to the High
implications including with respect to thin Court’s decision. For further details on the issues
capitalisation and transfer pricing. raised by this case, refer to our TaxTalk Alert.
For the latest up to date information refer to our
Other tax issues webpage. Thin capitalisation and valuing
Navigate global measures in debt capital
The ATO has issued final Taxation Determination
response to COVID-19 TD 2020/2 which deals with the requirement that an
To help any multinational business cut through the entity complies with the accounting standards in
complexity and pace of the changes made around calculating the value of its liabilities, which includes its
the globe to deal with the economic challenges debt capital. The Commissioner continues to take the
presented by COVID-19, PwC’s team of specialists view that an entity’s debt capital must be valued in its
from across the globe have collaborated to create a entirety in the manner required by the accounting
navigation tool for you to stay abreast of the standards regardless of whether it comprises debt
changes that impact your business across the interests that are classified as financial liabilities,
globe. Users can select up to five territories to equity instruments or compound financial instruments
compare COVID-19 measures. under the accounting standards.
May 2020
PwC 5TaxTalk Monthly
The Commissioner does not consider that the The OECD draft Model Rules for Reporting for
provisions operate to confine the calculation of value to Platform Operators with respect to Sellers in the
that part of the debt capital that is classified as a Sharing and Gig Economy was issued against the
financial liability under the accounting standards. The background of a number of jurisdictions that have
views expressed in the Determination apply to income already introduced certain reporting obligations on
years commencing both before and after its issue. platform operators, while others (including Australia)
are planning to introduce similar measures in the
Synthesised texts of Australia’s near future. In addition to the Model Rules, the
tax treaties OECD Forum on Tax Administration has developed
The ATO has released the synthesised text of the a Code of Conduct on providing information and
following tax treaties with Australia that are modified support to sellers on their tax obligations while
by the Multilateral Convention to Implement Tax minimising compliance burdens. The code is
Treaty Related Measures to Prevent Base Erosion intended to supplement the Model Rules, in
and Profit Shifting (the MLI): particular, where sellers are not subject to reporting
under the Model Rules.
• Synthesised Text of the MLI and the Agreement
Between Australia and Belguim which entered Other OECD developments
into force for Australia on 1 October 2019.
The following OECD developments have occurred
• Synthesised Text of the MLI and the Agreement since our last update:
Between Australia and Canada which entered
into force for Australia on 1 December 2019. • The OECD has released the public comments
received on the 2020 Review of Country-
Update to tax ruling on by-Country Reporting (BEPS Action 13)
interpreting tax agreements Minimum Standard.
The ATO has released an addendum which updates • The OECD has also released the stage 1 peer
Taxation Ruling TR 2001/13 that provides guidance review reports on dispute resolution (BEPS
on interpreting Australia’s double tax agreements. Action 14) for Brunei Darussalam, Curaçao,
Guernsey, Isle of Man, Jersey, Monaco, San
OECD guidance on COVID-19 Marino and Serbia. It has also released the
The Secretariat of the Organisation for Economic second peer review report assessing countries’
Co-operation and Development (OECD) released efforts to implement the Action 6 minimum
initial analyses on tax issues arising from standard (on preventing the granting of treaty
cross-border workers affected by the COVID-19 benefits in inappropriate circumstances).
crisis, and some countries have also started • The OECD has released BEPS Action 14 reports
publishing their own guidance. The guidance from for Austria, France, Germany, Italy,
the OECD and these countries provides welcome Liechtenstein, Luxembourg and Sweden. The
reassurance to taxpayers who were concerned that results from the peer review and peer monitoring
restrictions on travel or movement as a result of the process demonstrate positive changes across all
pandemic would change corporate residence, create seven jurisdictions, although not all show the
permanent establishments, or result in other same level of progress.
undesirable tax consequences. For further details • The Global Forum on Transparency and
refer to PwC Global Tax Policy Alert. Exchange of Information for Tax Purposes has
In addition, the OECD has also published the released the peer review reports for Brunei
following: Darussalam, Macau (China), Switzerland,
Barbados, Seychelles, Liberia, Peru and Tunisia
• An article to address the COVID-19 crisis,
assessing compliance with the international
discussing and developing solutions now and for
standard on transparency and exchange of
the future.
information on request (EOIR).
• Global reference guide on the actions
undertaken by tax administrations globally to US COVID-19 measures
support its taxpayers in light of COVID-19. A number of COVID-19 economic stimulus and
OECD update on reporting by targeted tax payment relief developments have
occurred in the United States (US), from a Federal,
sharing economy State and local level. Impacted taxes generally
The OECD has published the public comments include corporate income tax, individual income tax,
received on its draft Model Rules for Reporting for and sales and use tax.
Platform Operators with respect to Sellers in the
Sharing and Gig Economy. Comments were due on
20 March 2020.
May 2020
PwC 6TaxTalk Monthly
• Tax relief measures for businesses in the UK’s approach to tackling profit
‘Coronavirus Aid, Relief, and Economic Security
Act’ (the CARES Act) include a five-year net diversion
operating loss (NOL) carryback and a change in The UK HMRC has introduced a number of different
interest deduction limitations. For further details approaches to address what it sees as
refer to our Global Tax Insights. shortcomings in the application of the arm’s length
• The Internal Revenue Service (IRS) provides principle by some taxpayers. This initiative has
administrative relief related to COVID-19 to US resulted in a series of guidelines and compliance
taxpayers in addition to various relief measures processes for multinational entities (MNEs) with a
provided by the CARES Act. For further details UK presence, including the Diverted Profits Project
refer to our Global Tax Insights. (DPP), which seeks to minimise profit diversion
arrangements by MNEs. MNEs with UK entities
• Several US states and localities are providing
should take heed of the HMRC’s increased focus on
relief to taxpayers with tax payments due over
tackling profit diversion. Refer to this Global Tax
the next several months. PwC provides a matrix
Insights for further details.
that summarises select state and local tax relief
relating to COVID-19. EU revises list of blacklisted
2020-21 Hong Kong Budget jurisdictions
The Hong Kong Financial Secretary Paul Chan The European Union (EU) has revised its list of
Mo-po announced the 2020-21 Hong Kong Budget non-cooperative tax haven jurisdictions to include
on 26 February 2020 which outlined the Hong Kong Cayman Islands, Palau, Panama and Seychelles.
Government’s plan for the economy and proposals This will have implications for the viability of many
for taxation developments. The Budget contains a Cayman fund and holding structures, particularly for
range of measures designed to boost Hong Kong’s those funds that invest into Europe. Refer to this
financial services sector. Notable among these are article from PwC Switzerland for more detail.
proposals to waive stamp duty for exchange-traded
fund market makers and proposed tax concessions Federal Court allows custom tariff
on carried interest to encourage the setting up of concession order application
private equity funds in Hong Kong. Refer to the The Federal Court in Alstom Transport Australia Pty
PwC Hong Kong Budget website for further details. Ltd v Comptroller-General of Customs [2020]
2020-21 UK Budget FCAFC 43 has allowed the taxpayer’s appeal
against the decision of the Administrative Appeals
The United Kingdom (UK) Chancellor Rishi Tribunal which had found that the taxpayer’s
Sunak delivered the 2020-21 UK Budget on imported driverless trains were substitutable goods
11 March 2020. Alongside a £30bn package of that were produced in Australia at the time the
emergency measures to mitigate the short term application was lodged, as such, the application did
economic impact of Covid-19, the government not meet the tariff concession order (TCO) criteria
announced major investment plans as it formalised and were subject to duty. The Court found that the
promises to ‘level up’ the country. The Budget also Tribunal had adopted an incorrect approach in
contained a range of measures including a stamp arriving at its conclusion and set aside the decision.
duty surcharge for non-UK residents, review of the
UK funds regime and additional compliance Specifically, the Court found that the Tribunal failed
resources for Her Majesty’s Revenue and Customs to consider the use of the actual goods described in
(HMRC). As previously announced, a 2 per cent tax the TCO application. The Court ordered the matter
will be introduced on the revenues certain digital to be remitted to the Tribunal for re-determination
businesses earn from 1 April 2020. Refer to the according to law. The Court also observed that upon
PwC UK Budget website for further details. remittal “it may well be found that the uses to which
the applicant’s trains, as described in the TCO
application, can be put are those described by the
applicant as being “to transport passengers on a
high capacity, high frequency, driverless
metropolitan train line system”.
May 2020
PwC 7TaxTalk Monthly
Explore PwC’s global tax research and insights
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Chris Morris, Sydney Michael Bona, Brisbane Peter Collins, Melbourne
Australian Tax Leader Global Tax Leader International Tax Leader
+61 (2) 8266 3040 +61 (7) 3257 5015 +61 (3) 8603 6247
chris.morris@pwc.com michael.bona@pwc.com peter.collins@pwc.com
Michael Taylor, Melbourne Greg Weickhardt, Melbourne Nick Houseman, Sydney
Partner Partner Australian Transfer Pricing Leader
+61 (3) 8603 4091 +61 (3) 8603 2547 +61 (2) 8266 4647
michael.taylor@pwc.com greg.weickhardt@pwc.com nick.p.houseman@pwc.com
Angela Danieletto, Sydney Jayde Thompson, Sydney Jonathan Malone, Sydney
Partner Partner Partner
+61 (2) 8266 0973 +61 403 678 059 +61 (2) 8266 4770
angela.danieletto@pwc.com jayde.thompson@pwc.com jonathan.r.malone@pwc.com
Gary Dutton, Brisbane & Sydney Ben Lannan, Melbourne
Australian Trade Leader Partner
+61 (7) 3257 8783 +61 (3) 8603 2067
gary.dutton@pwc.com ben.lannan@pwc.com
Indirect Tax Update
Guidance on expansion of Determination 2020 specifies the requirements for
making valuations for the purpose of applying the
estimates regime to GST, LCT margin scheme. The requirements apply to
and WET valuations for taxable supplies of real property made
on or after 1 March 2010. This determination also
The Australian Taxation Office (ATO) has released
specifies requirements for the Commissioner to
Practical Compliance Guideline PCG 2020/2 which
make valuations for the purposes of applying the
explains how the Commissioner of Taxation will
margin scheme in specified circumstances for
administer the recent changes made by the
taxable supplies of real property made before and
Treasury Laws Amendment (Combating Illegal
on or after 1 March 2010.
Phoenixing) Act 2020 (Cth). These amendments,
which apply from 1 April 2020, bring goods and Taxpayer not entitled to Input
services tax (GST), luxury car tax (LCT) and wine
equalisation tax (WET) within the existing estimates
tax credits
and director penalty regimes that have historically The Administrative Appeals Tribunal in Dobie v
applied to PAYG withholding or superannuation Commissioner of Taxation [2020] AATA 292 has
guarantee charge liabilities. This Guideline focuses held that a taxpayer, which operated a hairdressing
on the expansion of the estimates regime which business, was not entitled to input tax credits and
enables the Commissioner to make an estimate of was also liable to an administrative penalty for
certain unpaid and overdue tax-related liabilities and failing to exercise reasonable care and behaving
recover the amount of the estimate. The Guideline recklessly. The taxpayer failed to prove that any
includes the relevant factors that the Commissioner creditable acquisitions were made during the
is to take into account in making a reasonable relevant periods The Tribunal also found that the
estimate of an unpaid net amount. taxpayer failed to discharge their onus of proof in
terms of demonstrating, on the balance of
GST determination for margin probabilities, that they were carrying on an
scheme valuation requirements enterprise from 30 June 2011 and that they were
entitled to be registered for GST.
A New Tax System (Goods and Services Tax)
Margin Scheme Valuation Requirements
May 2020
PwC 8TaxTalk Monthly
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Michelle Tremain, Perth Adrian Abbott, Sydney Jeff Pfaff, Brisbane
Indirect Tax Leader Partner Partner
+61 (8) 9238 3403 +61 (2) 8266 5140 +61 (7) 3257 8729
michelle.tremain@pwc.com adrian.abbott@pwc.com jeff.pfaff@pwc.com
Brady Dever, Sydney Mark Simpson, Sydney Matt Strauch, Melbourne
Partner Partner Partner
+61 (2) 8266 3467 +61 (2) 8266 2654 +61 (3) 8603 6952
brady.dever@pwc.com mark.simpson@pwc.com matthew.strauch@pwc.com
Suzanne Kneen, Melbourne
Partner
+61 (3) 8603 0165
suzanne.kneen@pwc.com
Personal Tax Update
Claiming deductions for running ATO releases high wealth private
expenses while working from groups tax gap
home due to COVID-19 The Commissioner of Taxation Chris Jordan has
The Australian Taxation Office (ATO) has released announced the income tax performance for
PCG 2020/3 which provides a simpler alternative for high wealth private groups for the first time. The
claiming deductions for additional running expenses ATO estimates the 2016–17 high wealth private
incurred whilst working from home due to groups net income tax gap to be 7.7 per cent or
COVID-19. The new arrangement will allow people approximately AUD770 million. Having regard to the
to claim a rate of 80 cents per hour for all their tax performance information already released
running expenses, rather than calculating costs for across other markets, the results reveal that over
specific running expenses. Multiple people living in 92 per cent of the high wealth private groups’
the same house can claim this new rate. For income tax was paid voluntarily or with little
example, a couple living together could each intervention from the ATO in 2016-17.
individually claim the 80 cents per hour rate. Under Full Federal Court allows
this guidance, it is also not a requirement to have a
dedicated work from home area. deductions for share losses and
Deductions for work expenses legal fees
The majority of the Full Federal Court in
The ATO has released Taxation Ruling TR 2020/1 Greig v Commissioner of Taxation [2020] FCAFC 25
which provides an updated view on circumstances has granted the taxpayer’s appeal and held that the
where work-related expenses will be deductible to taxpayer was entitled to claim a deduction for losses
an employee. This ruling considers the deductibility on shares that was incurred by reason of the
of work expenses in a number of scenarios and compulsory transfer and cancellation of the
provides illustrative examples of how to practically taxpayer’s shareholding, and also for the associated
apply these principles under a range of different fact legal fees incurred following the relevant company
patterns. Refer to our PwC TaxTalk Alert for being put into voluntary administration.
further details.
Draft work-related car expense Tribunal finds foreign citizen is
deductions rate determination not Australian tax resident
The Administrative Appeals Tribunal (AAT) in
The ATO has issued draft legislative determination Schiele v Commissioner of Taxation [2020]
MVE 2020/D1 which sets out the cents per kilometre AATA 286 has held that a foreign citizen from
rate for calculating work-related motor vehicle Germany, that came to Australia on a Working
expense deductions at 72 cents per kilometre for the Holiday visa (subclass 417), was not a ‘resident’ for
income year commencing 1 July 2020. Comments Australian income tax purposes. The Tribunal found
were due on 14 April 2020. that the taxpayer did not satisfy the relevant
residency tests and that their usual place of abode
was in Germany and not Australia. There was also
no evidence provided to the Tribunal to establish
May 2020
PwC 9TaxTalk Monthly
that the taxpayer intended to take up residency in citizen and not an Australian tax resident, they were
Australia. Accordingly, as the taxpayer was a foreign not entitled to claim the tax-free threshold.
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Glen Frost, Sydney Martina Crowley, Melbourne Amy Etherton, Newcastle
Partner Partner Partner
+61 (2) 8266 2266 +61 (3) 8603 1450 +61 (2) 4925 1175
glen.frost@pwc.com martina.crowley@pwc.com amy.etherton@pwc.com
Samantha Vidler, Brisbane Matt Gurner, Perth Alistair Hutson, Adelaide
Partner Partner Partner
+61 (7) 3257 8813 +61 (8) 9238 3458 +61 (8) 8218 7467
samantha.vidler@pwc.com matthew.gurner@pwc.com alistair.hutson@pwc.com
State Taxes Update
State tax measures in response to bushfire affected local government and alpine
resort areas.
COVID-19
The States and Territories of Australia have
Victoria Duties rulings
announced various stimulus packages to support The State Revenue Office of Victoria has issued the
businesses impacted by COVID-19, with all offering following Duties Rulings:
some form of relief in relation to land tax and some • Revenue Ruling DA-055v2 identifies the
offering some form of waiver or refunds of rates and concessions and assistance available to
licencing fees. taxpayers in meeting their obligations under the
For the latest up to date information refer to our Duties Act 2000 (Vic). The ruling sets out various
State Tax COVID-19 updates webpage. lodgment concessions and examples on the
calculation of duty, it also identifies certain duty
Relief measures for bushfire concessions that may apply, including where a
victims landholder’s land holdings include leasehold
estates, fixtures owned separately from land,
The following States have announced stamp duty and/or primary production land. This ruling
and land tax relief measures for bushfire victims: replaces DA-055 to clarify the operation of the
• The NSW Government has announced that it will anomalous duty outcome concession under
provide stamp duty relief for people who have s89E of the Duties Act 2000 on relevant
lost their homes in the NSW bushfires, and acquisitions in landholders whose Victorian land
choose to buy a home elsewhere in NSW holdings comprise interests in fixtures held
instead of rebuilding. Purchasers of replacement separately from the land on which they are
homes will only start paying stamp duties when located.
the amount of duty payable exceeds AUD55,000. • Revenue Ruling DA-056v2 explains the meaning
Eligible people who have already paid their of the term “interest” and explains how and when
stamp duty will be able to apply for a refund. an interest may be acquired. The ruling also sets
• RevenueSA has released Revenue Ruling out who may be liable for duty on an acquisition
SDALT001 which details a number of stamp duty of an interest in a landholder and in what
and land tax measures for those impacted by the circumstances an acquisition may be exempt
bushfires in a specified bushfire area. Notably, from duty under the Duties Act 2000 (Vic). This
individuals purchasing a home to replace a ruling replaces DA-056 to clarify the operation of
property destroyed by the bushfires in SA have s89D(a) of the Duties Act 2000 and confirm the
up to 20 January 2024 to access stamp continued availability of the exemption under s42
duty relief. of the Duties Act 2000 in light of the decision in
• Victoria has enacted tax relief measures for GJ Grantham Pty Ltd v Commissioner of State
bushfire victims which include a 50 per cent land Revenue [2019] VCAT 1275.
transfer duty concession on transfers entered
into on or after 27 January 2020 for the
acquisition of commercial or industrial property in
May 2020
PwC 10TaxTalk Monthly
QLD updated Revenue Rulings after the partnerships had dissolved, declarations
that title to particular partnership property was held
The Queensland Office of State Revenue has on trust in the relevant proportions for each former
updated the following rulings: partner were dutiable transactions within the
• Public Ruling DA105.4.3 which deals with the meaning of s 11(1) of the Duties Act 2008 (WA).
concession for transfer duty for dutiable
transactions involving transfers of property used
NSW – Taxpayer not liable to pay
to carry on a family primary production business duty as no goodwill transferred
to certain relatives. The ruling clarifies the terms The Supreme Court of NSW in Favotto Family
of an administrative arrangement whereby the Restaurants Pty Ltd v Chief Commissioner of State
concession operates such that “defined relatives” Revenue (NSW) [2020] NSWSC 120 found for the
include a first cousin or the spouse of a first taxpayer and held that it did not have an obligation
cousin. The meaning of “first cousin” for this to pay duty under the Duties Act 1997 (NSW) as
purpose is also provided. On 3 February 2020, there was no transfer of goodwill in the transaction
the expanded administrative arrangement was in respect of two McDonald’s restaurant businesses.
approved for an additional 12 months The Court instead found the transaction resulted in
commencing 23 May 2019. All other conditions the taxpayer having a contractual right or conferring
of the concession continue to apply. of authority to operate the business and use of the
• Public Ruling TAA060.2.5 which sets out the McDonald’s system, and as such, was not liable to
general manner in which the Commissioner of pay duty. Specifically, the transactions generated
State Revenue will decide whether to remit new contractual rights in the forms of limited
penalty tax and the extent of any remission. licences and did not (whether in terms or in their
According to the ruling, each case would be effect) convey any pre-existing proprietary rights.
considered on its merits with regard to a
taxpayer’s conduct and the circumstances No primary production land tax
surrounding the case. It does not apply to exemption applied
reassessments of transfer duty and mortgage
Two recent cases have considered whether the
duty relating to concessions for homes.
relevant primary production land tax
WA duty concession for strata exemptions applied:
titles subdivisions • The Supreme Court of NSW in Young v Chief
Commissioner of State Revenue [2020]
The WA Treasurer, the Hon Ben Wyatt, has
NSWSC 330 has held that the taxpayer, a family
announced that amendments will be introduced to
trust trustee registered as proprietor of land
ensure transfer duty relief will continue for Western
parcels, failed to prove that the dominant use of
Australians who subdivide their property using a
the land was for the maintenance of horses to
strata titles scheme and there is no change in land
sell them or their natural increase or bodily
ownership. The amendments follow a State
produce in accordance with s10AA(3)(b) of the
Administrative Tribunal decision in February 2019
Land Tax Management Act 1956 (NSW). As
that changed how duty applied to these
such, each parcel of land did not qualify for
transactions. These changes will apply from the
primary production land tax exemption. There
date the strata titles reforms come into operation,
was insufficient objective indication that the
which is proposed to occur on 1 May 2020.
dominant purpose of the use of the land during
High Court finds WA duty payable the tax years was for the purpose of selling
horses or their progeny, and instead the
on dissolution of partnership evidence tended to strongly favour the
The High Court by majority, has allowed the conclusion that the horses were maintained on
Western Australian Commissioner of State the land during tax years for recreational or
Revenue’s appeal from the Court of Appeal of the lifestyle reasons.
Supreme Court of Western Australia in Rojoda Pty • The Supreme Court of Victoria has found in
Ltd V Commissioner of State Revenue [2018] Annat Pty Ltd as trustee for the Annat Family
WASCA 224 and found that duty was payable in Trust v Commissioner of State Revenue [2020]
relation to the winding up of two partnerships. The VSC 108 that although around 50 per cent of the
majority held that, in relation to the two partnerships, land was used for primary production, such use
a partner held title to partnership property on trust was not sufficient to impart the whole of the land
for their fellow partners, each of whom had a with the requisite character of being used
non-specific interest in relation to all of the primarily for the business of primary production.
partnership property. The majority also held that
May 2020
PwC 11TaxTalk Monthly Let’s talk For a deeper discussion of how these issues might affect your business, please contact: Rachael Cullen, Sydney Barry Diamond, Melbourne Stefan DeBellis, Brisbane Partner Partner Partner +61 (2) 8266 1035 +61 (3) 8603 1118 +61 (7) 3257 8781 rachael.cullen@pwc.com barry.diamond@pwc.com stefan.debellis@pwc.com Rachael Munro, Perth Cherie Mulyono, Sydney Partner Partner +61 (8) 9238 3001 +61 (2) 8266 1055 rachael.munro@pwc.com cherie.mulyono@pwc.com May 2020 PwC 12
TaxTalk Monthly
Superannuation Update
Covid-19 and early release of 20 April 2020 via ATO Online through myGov. Any
amounts released from a fund are tax-free. It is
superannuation strongly recommended that individual financial
As noted in the Legislative Update, the Coronavirus advice be sought before applying for early release of
Economic Response Package Omnibus Act 2020, superannuation.
among other things, provided for the early release of Affected funds should also refer to this ATO
superannuation to allow affected individuals to have information in relation to the specific implementation
up to AUD10,000 released from their measures associated with this relief.
superannuation during the 2019-20 financial year
and another AUD10,000 in the 2020-21 financial
Temporarily reducing
year from 1 July 2020 until 24 September 2020. superannuation minimum
To apply for early release, an Australian or New drawdown rates
Zealand citizen or permanent resident must satisfy
one or more of the following requirements: In addition, the Coronavirus Economic Response
Package Omnibus Act 2020, provides temporary
• be unemployed support for retirees by reducing superannuation
• be eligible to receive a job seeker payment, minimum drawdown requirements for
youth allowance for jobseekers, parenting account-based pensions and similar products by
payment (which includes the single and 50 percent for the 2019-20 and 20-21 income years.
partnered payments), special benefit or farm This concession is intended to reduce the need for
household allowance, or retirees to sell investment assets to fund minimum
drawdown requirements.
• on or after 1 January 2020, either the individual:
– was made redundant Other COVID-19 superannuation
– had working hours reduced by 20 per cent or developments
more, or The following superannuation developments have
occurred in response to COVID-19 including:
– was a sole trader whose business was
suspended or had a reduction in turnover of • Unclaimed super money reporting and payment
20 per cent or more. deferral – The ATO has announced that it will be
granting a deferral of the scheduled statement
In addition, Treasury Laws Amendment (Release of day and payment day for 31 December
Superannuation on Compassionate Grounds) unclaimed money day accounts. This will be a
Regulations 2020 was made to allow the following deferral of the 30 April 2020 due date to
temporary residents affected by the adverse 31 October 2020.
economic effects of coronavirus to have up to • Extension of self-managed superannuation fund
AUD10,000 released from their superannuation or (SMSF) annual return obligations – the ATO is
retirement savings account on automatically applying a deferral for the
compassionate grounds: lodgment of 2019 SMSF annual returns that
• those who hold a student visa that has been held were ordinarily due on 15 May and 5 June 2020
for 12 months or more and are unable to meet until 30 June 2020.
immediate living expenses • To help superannuation trustees understand
• those who hold a Subclass 457 (Temporary their new and ongoing responsibilities during this
Work (Skilled)) or Subclass 482 (Temporary Skill period of disruption, Australian Prudential
Shortage) visa who have had their working hours Regulation Authority (APRA) and ASIC have
reduced to zero but are still employed by their published superannuation frequently asked
employer, or questions (FAQs) on each agency’s website.
• other temporary visa holders who are unable to • APRA is launching a new data collection process
meet immediate living expenses to assess the progress and impact of the
Government’s temporary early release of
Temporary residents may only make an application superannuation scheme. From the week
for release in the financial year ending 30 June 2020 commencing 27 April 2020, registrable
and only apply for one payment of up to superannuation entity (RSE) licensees will be
AUD10,000. asked to complete and submit APRA’s new Early
Eligible individuals who wish to access the early Release Initiative (ERI) data collection form
release of super for COVID-19 can do so from weekly until further notice.
May 2020
PwC 13TaxTalk Monthly
Draft legislation to improve ATO speeches on SMSF
flexibility of super for older regulation
Australians A number of speeches dealing with SMSFs were
The Federal Government has released a package of given by the ATO at the SMSF Association 2020
exposure draft legislation to provide greater National Conference:
flexibility for individuals over 65 years of age in • ATO Deputy Commissioner James O’Halloran in
making voluntary superannuation contributions a speech at the conference discussed the
(concessional and non-concessional) from regulation of SMSFs in Australia, including
1 July 2020. These measures were first announced discussion on the following topics: the Royal
in the 2019-20 Federal Budget and seek to amend Banking Commission, the SMSF journey,
the relevant tax and superannuation law to: technology and the SMSF sector, SMSF
• increase the age at which the work test starts to statistics, cybersecurity, real-time reporting and
apply for voluntary concessional and data, and areas of interest for SMSFs.
non-concessional superannuation contributions • ATO Assistant Commissioner Dana Fleming
from the age of 65 to 67 years presented an update at the conference on
• increase the cut-off age for spouse contributions practical issues within SMSFs including the
from 69 to 74 years, and ATO’s current SMSF enforcement approach, and
the SMSF trustee risk strategies and treatments.
• allow individuals aged 65 and 66 to make up to
three years of non-concessional superannuation Key super rates and thresholds
contributions under the bring-forward rule. The ATO has released key superannuation rates
Comments on the draft law were due by and thresholds for the 2020-21 year. Some of these
3 April 2020. key superannuation rates and thresholds include:
ATO concerns with SMSF and • concessional contributions cap is AUD 25,000
property development • non-concessional contributions cap is
AUD 100,000
The ATO has issued SMSF Regulator’s Bulletin
• capital gains tax cap amount for non-
SMSFRB 2020/1 which outlines its concerns
concessional contributions is AUD 1.565 million
regarding an increase in the number of
self-managed superannuation funds (SMSFs) • the low-rate superannuation benefit cap is
entering into arrangements, with related or unrelated $215,000
parties, involving the purchase and development of • the untaxed plan cap amount is
real property for subsequent disposal or leasing. AUD 1.565 million
In particular, the ATO is seeing a number of • the general transfer balance cap is
arrangements in which the investment activity is AUD 1.6 million
undertaken utilising joint venture arrangements, • the defined benefit income cap is AUD 100,000
partnerships or investments through an ungeared
related unit trust or company. According to the • the Division 293 tax threshold is AUD$250,000
Bulletin, these types of investments can cause • the superannuation guarantee maximum super
concerns where they are used to inappropriately contribution base is AUD$57,090 per quarter
divert income into the superannuation environment, • the employment termination payments (ETP) cap
or if SMSF assets are used to fund property amount for life benefit termination payments
development ventures in a manner that is and death benefit termination payments is
inappropriate or detrimental to retirement purposes. AUD 215,000, and
The ATO notes that property development can be a
legitimate investment for SMSFs where it complies • the tax-free part of genuine redundancy
with the Superannuation Industry (Supervision) Act payments and early retirement scheme
1993 (Cth) and Superannuation Industry payments is AUD 10,989 and AUD 5,496 for
(Supervision) Regulations 1994 (Cth). each complete year of service.
May 2020
PwC 14TaxTalk Monthly
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Marco Feltrin, Melbourne Abhi Aggarwal, Brisbane Alice Kase, Sydney
Partner Partner Partner
+ 61 (3) 8603 6796 + 61 (7) 3257 5193 + 61 (2) 8266 5506
marco.feltrin@pwc.com abhi.aggarwal@pwc.com alice.kase@pwc.com
Mark Edmonds, Sydney Matthew Strauch, Melbourne Ken Woo, Sydney
Partner Partner Partner
+ 61 (2) 8266 1339 + 61 (3) 8603 6952 + 61 (2) 8266 2948
mark.edmonds@pwc.com matthew.strauch@pwc.com ken.woo@pwc.com
Naree Brooks, Melbourne
Partner
+ 61 (3) 8603 1200
naree.brooks@pwc.com
Legislative Update
To give effect to the Government’s first stimulus due to the Coronavirus, are unable to meet
package in response to COVID-19, the Government their obligations under the Corporations Act
introduced the following tax and superannuation or the Corporations Regulations
related Bills (all of which are now enacted):
– Super drawdowns – reduce the minimum
• Boosting Cash Flow for Employers (Coronavirus payment amounts for account-based
Economic Response Package) Bill 2020, which pensions by half for the 2019-20 and
was introduced into the House of 2020-21 financial years
Representatives on 23 March 2020, provides for
the Commissioner of Taxation to make “cash – Early release of super – provide for early
flow boost payments” of at least AUD20,000 and release of superannuation to allow affected
up to AUD100,000 for a small or medium individuals to have up to AUD10,000 released
business employer entity, or a charity or other from their superannuation during the 2019-20
not-for-profit employer entity, for those financial year and another AUD10,000 in the
employers which have aggregated turnover of 2020-21 financial year
less than AUD50 million. – Cash flow assistance for employers of
• Coronavirus Economic Response Package apprentices and trainees
Omnibus Bill 2020, which was introduced into the – Stimulus payments to certain Government
House of Representatives on 23 March 2020, allowance and income support recipients
contains a number of measures including:
– Instant asset write-off for businesses with – Provide temporary relief for financially
aggregated turnovers of less than AUD500 distressed individuals and businesses
million – increase the cost threshold below – Increase the Medicare levy low-income
which business entities can access an thresholds for individuals and families in line
immediate deduction for depreciating assets with movements in the CPI for the 2019-20
and certain related expenditure (instant asset and later income years.
write-off) from AUD30,000 to AUD150,000,
from 12 March 2020 to 30 June 2020. • Guarantee of Lending to Small and Medium
Enterprises (Coronavirus Economic Response
– Backing business investment for businesses Package) Bill 2020, which was introduced into
with aggregated turnovers of less than the House of Representatives on 23 March 2020,
AUD500 million – additional accelerated first allows Commonwealth granting of guarantees to
year depreciation deduction for new financial institutions in connection with loans
depreciation assets first held, and first made, or to be made, to SMEs if granting the
used or installed ready for use between guarantee is likely to assist in dealing with the
12 March 2020 and 30 June 2021 economic impacts of the Coronavirus.
– Flexibility in the Corporations act to establish The Government also introduced its second
a temporary mechanism to provide short-term COVID-19 response stimulus package in a special
regulatory relief to classes of persons that, sitting of Parliament during which the following
May 2020
PwC 15TaxTalk Monthly
tax-related Bills (now enacted) were introduced into • Treasury Laws Amendment (Recovering Unpaid
the House of Representatives and passed by the Superannuation) Act 2020 which implements the
Senate on 8 April 2020: one-off amnesty to encourage employers to
• Coronavirus Economic Response Package self-correct historical Superannuation Guarantee
(Payments and Benefits) Act 2020 which (SG) non-compliance. The amendments also
establishes a framework to administer the limit the Commissioner’s ability to remit penalties
Coronavirus economic response payments. for historical SG non-compliance, where an
Under the framework, the Treasurer will be able employer fails to disclose information relevant to
to make rules to provide for payments their historical SG shortfall.
administered by the Commissioner, including the Commonwealth revenue measures registered as
new JobKeeper Payments program announced legislative instruments or regulations since the last
on 30 March 2020. This allows for flexibility of monthly update include:
the payment arrangements and ensures the • Coronavirus Economic Response Package
robustness of the eligibility criteria to (Payments and Benefits) Rules 2020 provide the
appropriately respond to the impacts of rules for the JobKeeper measure under the
COVID-19. Coronavirus Economic Response Package
• Coronavirus Economic Response Package (Payments and Benefits) Act 2020 which
Omnibus (Measures No. 2) Act 2020 which, together give effect to the JobKeeper wage
among other things, contains measures to subsidy of AUD1,500 per fortnight per eligible
amend the Fair Work Act 2009 to support the employee.
practical operation of the JobKeeper scheme in • Customs (Prohibited Exports) Amendment
Australian workplaces, and amends the tax (COVID‑19 Human Biosecurity Emergency)
secrecy provisions to allow de-identified Regulations 2020 provide a temporary
protected information to be disclosed to the prohibition on the export of goods that are
Treasury for the purposes of policy development, essential to preventing the spread of COVID-19.
or analysis, in relation to COVID-19.
• Customs (Prohibited Imports) Amendment
For further information on the various COVID-19 (Tablet Presses, Encapsulators and Other
economic stimulus measures, refer to our COVID-19 Measures) Regulations 2020 amend the
business measures webpage. Customs (Prohibited Imports) Regulations 1956
The following key tax and superannuation related to extend the current provisions dealing with the
Bills were also given Royal Assent since our last granting of import permissions for tablet presses
monthly update: to complete or incomplete encapsulators and
• Treasury Laws Amendment (2018 Measures incomplete tablet presses from 1 May 2020.
No 2) Act 2020 which includes FinTech • Guarantee of Lending to Small and Medium
regulatory licensing exemptions, and proposes to Enterprises (Coronavirus Economic Response
make minor changes to venture capital and early Package) Rules 2020 defines the term ‘SME
stage investor tax concessions to ensure they entity’ for the purposes of the Guarantee of
operate as intended. Lending to Small and Medium Enterprises
• Treasury Laws Amendment (Combating Illegal (Coronavirus Economic Response Package) Act
Phoenixing) Act 2020 which implements various 2020 to refer to a business or not-for profit that
measures to address illegal phoenix activity that has an annual turnover that was less than
were announced in the 2018-19 Budget including AUD50 million in the prior year or is likely to be
a measure which allows the Commissioner of less than AUD$50 million in the current
Taxation to collect estimates of anticipated financial year.
goods and services tax (GST) liabilities including Federal Parliament is expected to next sit
the luxury car tax and the wine equalisation tax, sometime in May 2020. The Government has
and importantly make company directors announced that it will defer the 2020-21 Budget until
personally liable for their company’s GST 6 October 2020.
liabilities in certain circumstances.
May 2020
PwC 16TaxTalk Monthly
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Chris Morris, Sydney Michael Bona, Brisbane Warren Dick, Sydney
Australian Tax Leader Global Tax Leader Tax Reporting & Strategy Leader
+61 (2) 8266 3040 +61 (7) 3257 5015 +61 (2) 8266 2935
pete.calleja@pwc.com michael.bona@pwc.com warren.dick@pwc.com
Sarah Hickey, Sydney James O’Reilly, Brisbane Jason Karametos, Melbourne
Sydney Tax Market Leader Brisbane Tax Leader Industries Tax Leader
+61 (2) 8266 1050 +61 (7) 3257 8057 +61 (3) 8603 6233
sarah.a.hickey@pwc.com james.oreilly@pwc.com jason.karametos@pwc.com
Kirsten Arblaster, Melbourne Rob Bentley, Perth Alistair Hutson, Adelaide
Melbourne Tax Leader Perth Tax Leader Partner
+61 (3) 8603 6120 +61 (8) 9238 5202 +61 (8) 8218 7467
kirsten.arblaster@pwc.com robert.k.bentley@pwc.com alistair.hutson@pwc.com
Liam Collins, Melbourne Rebecca Cohen, Sydney
Financial Services Tax Leader IUR Tax Leader
+61 (3) 8603 3119 +61 (2) 8266 8476
liam.collins@pwc.com rebecca.cohen@pwc.com
Other News
ATO administrative concessions Government’s Coronavirus
in light of COVID-19 Business Liaison Unit
The Australian Taxation Office (ATO) has The Federal Government has announced the
announced that it will implement a series of creation of a new Coronavirus Business Liaison Unit
administrative measures to assist Australians in the Treasury to build on existing efforts to support
experiencing financial difficulty as a result of the confidence, employment and business continuity.
COVID-19 outbreak. Options available to assist The role of the Unit will be to engage with peak
impacted businesses may include: business groups on systemic issues relating to
• deferring the payment date of certain amounts Coronavirus to ensure these are being addressed
due through the business activity statement by Government.
(BAS), income tax assessments, and fringe National COVID-19 Coordination
benefits tax (FBT) assessments
Commission created
• allowing businesses on a quarterly reporting A new National COVID-19 Coordination
cycle for goods and services tax (GST) to opt Commission (NCCC) has been created to
into a monthly GST reporting in order to get coordinate advice to the Government on actions to
quicker access to GST refunds they may be anticipate and mitigate the economic and social
entitled to effects of the global coronavirus pandemic.
• allowing businesses to vary Pay As You Go
(PAYG) instalment amounts Federal Senate Committee on
• remitting any interest and penalties, incurred on COVID-19 established
or after 23 January 2020, that have been applied Federal Parliament has established a select
to tax liabilities, and committee which will inquire into and report on the
• working with affected businesses to help them Australian Government’s response to the COVID-19
pay their existing and ongoing tax liabilities by pandemic and any related matters. The Committee
allowing them to enter into low-interest will present its final report on or before 30 June 2022.
payment plans.
ATO appointments
Our Guidance on tax obligations and relief for
The Hon Michael Sukkar MP Minister for Housing
businesses affected by COVID-19 website which
and Assistant Treasurer has announced the
provides a summary of the relief currently available
appointment of Jeremy Hirschhorn as a Second
to businesses at both the Federal and State level,
Commissioner of the Australian Taxation Office
including the administrative concessions announced
(ATO) for a seven-year period from 16 April 2020.
by the ATO.
May 2020
PwC 17You can also read
