PWC'S MONTHLY TAX UPDATE - KEEPING YOU UP TO DATE ON THE LATEST AUSTRALIAN AND INTERNATIONAL TAX DEVELOPMENTS - PWC AUSTRALIA
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www.pwc.com.au PwC’s Monthly Tax Update Keeping you up to date on the latest Australian and international tax developments June 2021
PwC’s Monthly Tax Update
Corporate Tax Update
Extension of temporary full The patent box concession is proposed to apply
from income years starting on or after 1 July 2022,
expensing and loss carry back but only in respect of granted patents which were
In the 2021-22 Federal Budget, it was announced applied for after 11 May 2021.
that the temporary full expensing measures, For further details, refer to PwC’s Federal Budget
allowing eligible businesses to deduct the full cost of Insights and Analysis.
eligible depreciating assets, and the temporary loss
carry back measure will be extended by one year. Other Federal Budget innovation
This will allow the full cost of eligible depreciating measures
assets acquired from 7:30pm (AEDT) on In other 2021-22 Federal Budget measures, the
6 October 2020 and first used or installed ready for Government announced that it will introduce a
use by 30 June 2023, instead of the original 30 per cent refundable Digital Games Tax Offset for
deadline of 30 June 2022, to be deducted. For eligible businesses that spend a minimum of AUD
further details on temporary full expensing, refer to 500,000 on qualifying Australian games
PwC’s Tax Alert. expenditure. The offset will not be available for the
The extension of the temporary loss carry back development of games that contain gambling
measures will allow eligible companies to carry back elements or that cannot obtain a classification
tax losses from the 2022-23 income year to offset rating. The Government will consult with industry
previously taxed profits as far back as the 2018-19 from mid-2021 to inform the criteria and definition of
income year. Refer to PwC’s Tax Alert for further qualifying expenditure.
details on the temporary loss carry back measures. Furthermore, taxpayers will have the option to self-
Changes to tax treatment of ESS assess the effective life of intangible depreciating
assets or to depreciate the asset over its statutory
The Government has announced as part of the effective life. It is proposed to apply to eligible
2021-22 Federal Budget a number of changes to the assets such as patents, registered designs,
existing employee share schemes (ESS) rules and copyrights and in-house software acquired on or
regulatory requirements which are intended to after 1 July 2023.
remove unnecessary impediments and compliance
burdens. One of the main changes is that it will For further details, refer to PwC’s Federal Budget
remove the cessation of employment as a taxing Insights and Analysis.
point for ESS. This measure will ensure that Junior Minerals Exploration
employees that leave their employment will not be
subject to tax on unvested awards. The proposed Incentive extended
measure also contains a number of changes to The Federal Government has announced that it will
disclosure and licensing requirements that will extend the Junior Minerals Exploration Incentive
include the removal of these requirements for many (JMEI), which was due to end in 2020-21, for four
companies where they do not charge or lend to the more years. The JMEI is a tax credit arrangement
employees to whom they offer ESS. which allows junior mineral exploration companies
For further details, refer to PwC’s Federal Budget to turn losses generated from expenditure on
Insights and Analysis. greenfields minerals exploration in Australia into tax
credits that can be distributed to Australian resident
Patent box regime for medical and investors. The extension of the program will see it
biotech innovations continue through to the 2024-25 income year with
AUD 100 million in additional funding. For further
The Government announced in the 2021-22 Federal details, refer to PwC’s Federal Budget Insights and
Budget that it will introduce a “patent box tax Analysis.
regime” to encourage innovation in Australia by
taxing corporate income derived from certain Technical amendments to tax laws
medical and biotech patents at a concessional Exposure draft legislation and regulations have
effective corporate tax rate of 17 per cent been released covering proposed minor and
(compared to the current headline corporate tax rate technical amendments to taxation laws.
of 30 per cent for large businesses and 25 per cent
for small to medium companies from 1 July 2021).
June 2021
PwC 2PwC’s Monthly Tax Update
The exposure draft materials contain a number Board of Tax to review dual-
of amendments, including the following taxation
measures: agency administration model
clarification that a country by country reporting The Board of Taxation will conduct a review into the
(CbC) entity is to provide a statement on the dual-agency administration model for the R&D tax
global operations and pricing policies of other incentive, further to the government’s
members of the CBC reporting group for the announcement in the 2021–22 Federal Budget. The
income year to which the statement relates Board’s aim is to identify opportunities to reduce
rather than the previous income year duplication between the Australian Taxation Office
(ATO) and Industry Innovation and Science
clarification of how a company may change its
Australia (IISA), simplify administrative processes,
loss carry back choice
or otherwise reduce the compliance costs for
ensuring a franking credit arises for a company applicants.
in particular circumstances where the company’s
tax offset refund is subsequently reduced The Board has been requested to report to the
Government by 30 November 2021.
clarification that capital works are included within
the requirement to spend AUD 100 million on Report on Australia as a
certain assets for the purposes of the alternative
test for eligibility for the temporary full expensing
technology and financial centre
measure; and The Senate Select Committee on Australia as a
expanding the operation of the modified tax cost Technology and Financial Centre has tabled its
setting rule currently applying to finance leases second interim report on financial and regulatory
to cover all leases where the joining entity is a technology. The report contained a number of
lessor or lessee of a depreciating asset. recommendations including the following tax related
measures:
Comments on the exposure draft materials were
due on 25 May 2021. the research and development tax incentive be
amended to allow the use of different
R&D activities and coal assessment methodologies and allow for
quarterly payments to successful applicants
exploration
the Government consider the establishment of a
The Full Federal Court in Coal of Queensland Pty separate software-specific tax incentive scheme,
Ltd v Innovation and Science Australia [2021] and
FCAFC 54 has found that a series of activities that
potentially would make the extraction and the Government consider abolishing interest
processing of coal deposits within an exploration withholding tax, consistent with
area economically viable did not constitute core or recommendations from the Johnson Review.
supporting research and development (R&D) The Committee has also published an issues paper
activities. The activities included conducting outlining the committee’s intended direction for the
surveys, drilling to validate survey results and final phase of the inquiry and some specific areas of
providing samples for analysis by experts. interest. This paper seeks options to replace the
The Full Court found that the experts agreed before offshore banking unit (OBU) regime with an
the Administrative Appeals Tribunal that the outcome Incremental Business Activity Rate (IBAR) as set
of the activities “could have been determined in out in the Low Report (Making Australia an
advance and did not generate any new knowledge” Internationally Competitive Financial Centre &
which was supported by the evidence. Attracting Asia-Pacific Business Headquarters to
Australia, January 2021) and how Australia can
Online R&D portal market its strengths to position itself globally as a
technology and finance centre having regard to the
A new R&D tax incentive portal is available for
competitiveness of Australia’s existing tax and
companies to apply to register eligible R&D activities
regulatory regimes, especially as applied to inbound
using a redesigned online registration form. The
international investment, imports, and immigration.
online registration form includes rewritten questions
The deadline for submissions to this latest paper is
with updated ‘help’ text and has primarily been
30 June 2021.
designed to help companies demonstrate their
eligibility for the R&D tax incentive. The final report of the select committee is due on
30 October 2021.
June 2021
PwC 3PwC’s Monthly Tax Update
Deduction allowed for when income, profits or capital gains are derived by
the receiver acting as the entity’s agent, the receiver
exploration rights must retain enough money to pay the resulting
The Federal Court has held that a party to joint taxation liability. This obligation to retain only applies
venture agreements in relation to a natural gas to money that has come to the receiver in their
project was entitled to a tax deduction under capacity as agent for the entity. Once an income tax
Division 40 of the Income Tax Assessment Act 1997 assessment has been made, the obligation to retain
(Cth) (ITAA 1997) for the cost of acquiring an remains ongoing. The Determination applies to
additional proportional interest in statutory titles years of income commencing both before and after
collectively held by the project’s participants (which 19 May 2021, its date of issue.
conferred authority to explore for petroleum) in Shell
Energy Holdings Australia Limited v Commissioner
Applying for a director ID
of Taxation [2021] FCA 496. This case considers a The following legislative instruments extend the
range of issues such as what is a mining, quarrying application period in which an individual is required
or prospecting right (MQPR), what is use of an to apply for a Director Identification (ID) Number if
MQPR, what is exploration or prospecting and when the individual becomes an eligible officer in the
is an MQPR ‘first used’ for exploration and period starting when the director ID legislation
prospecting. commences and ending 31 October 2021:
The Court concluded that from the time of approval Corporations (Transitional) Director Identification
and registration in early November 2012, the Number Extended Application Period 2021, and
taxpayer became the holder of intangible assets Corporations (Aboriginal and Torres Strait
comprising the additional proportional interest in Islander) (Transitional) Director Identification
each of the statutory titles that it had acquired under Number Extended Application Period 2021.
the Asset Exchange Agreement with another project
The introduction of a director ID requirement is one
participant for consideration of cash and an
Government initiative to promote good corporate
assignment of other petroleum interests. The
conduct, and to deter and penalise illegal
intangible assets were depreciating assets because
phoenixing. The director ID will require all
each was a mining, prospecting or quarrying right,
company directors to confirm their identity via a
specifically because each intangible asset was an
unique identifier.
interest in the statutory titles which conferred a right
to explore for petroleum. Specifically, these instruments provide that
new eligible officers can apply for a director ID
Receiver’s obligation for post- under the Corporations Act 2001 (Cth) until
appointment tax liabilities 30 November 2022, if the individual becomes an
eligible officer in the period from 4 April 2021 to
The ATO has finalised Taxation Determination 31 October 2021, and for new directors appointed
TD 2021/5 which considers a receiver’s obligation to under the Corporations (Aboriginal and Torres Strait
retain money for post-appointment tax liabilities Islander) Act 2006 (Cth) before 31 October 2022 to
under section 254 of the Income Tax Assessment obtain a director ID as late as 30 November 2023.
Act 1936 (Cth). The Commissioner considers that
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 Amy Etherton, Newcastle
Financial Services Tax Leader Partner
+61 (3) 8603 3119 +61 (2) 4925 1175
liam.collins@pwc.com amy.etherton@pwc.com
June 2021
PwC 4PwC’s Monthly Tax Update
Employment Taxes Update
Victorian payroll tax changes In other forthcoming SG changes, in the 2021-22
Federal Budget, the Government announced that,
As part of the 2021-22 Victorian State Budget, effective from the start of the first financial year after
delivered on 20 May 2021 by Treasurer Tim Pallas, enactment of the enabling legislation (expected to
a number of payroll tax measures were announced. have occurred prior to 1 July 2022), the existing
This includes the following changes effective from AUD 450 per month minimum salary or wages
1 July 2021: threshold that resulted in low income employees not
the payroll tax-free threshold will increase from receiving any SG support will be removed.
AUD 650,000 to AUD 700,000
New South Wales payroll tax relief
the regional employer rate of payroll tax will
reduce from 2.02 to 1.2125 per cent. for new jobs
the threshold for reporting payroll tax annually The Payroll Tax Amendment (Jobs Plus) Bill 2021
will increase from AUD 40,000 to AUD 100,000. has been introduced into and passed by the New
South Wales (NSW) Parliament with amendments.
Furthermore, from 1 January 2022, a new revenue
The measure operates to exempt employers from
mechanism will be introduced to provide funding for
liability to payroll tax on wages that are subject to
mental health services in the form of a Mental
Jobs Plus agreements. The amendments made to
Health and Wellbeing Levy which will be
the Bill include a reduction in the threshold number
implemented as a payroll tax surcharge on wages
of jobs required to apply for relief (i.e. reduces the
paid in Victoria. For businesses with national
threshold from 30 to 20 jobs for areas outside the
payrolls over AUD 10 million a year, the rate is 0.5%
metropolitan area). For a summary of the NSW Jobs
and an additional 0.5 per cent for businesses with
Plus program, refer to our previous Tax Alert. The
national payrolls above AUD 100 million. The
legislation also provides that wages funded by the
surcharge rates will be paid on the Victorian share
Aged Care Workforce Retention Grant Opportunity
of wages above the relevant threshold. Existing
program continue to be exempt from payroll tax.
payroll tax exemptions for private schools, hospitals,
charities, local councils, and wages paid for parental New South Wales wage theft
and volunteer leave will apply for the levy.
legislation
Legislation to give effect to effect to these
measures, State Taxation and Mental Health Acts The Tax Administration Amendment (Combating
Amendment Bill 2021, has already been introduced Wage Theft) Bill 2021 has been introduced to the
into the Victorian Parliament. NSW Parliament to give effect to the Government’s
previous announcement to crack down on
Super guarantee changes coming wage theft.
The legislated increase to the superannuation The Wage Theft Bill amends the Taxation
guarantee (SG) rate to ten per cent from the existing Administration Act 1996 (NSW) to provide further
9.5 per cent will take effect from 1 July 2021. This measures to deter the underpayment of wages,
increase will require employers to contribute an including by increasing penalties for certain offences
additional half per cent to meet their SG obligations and creating an offence of knowingly evading or
for the financial year ending 30 June 2022. Whether attempting to evade tax, and by allowing:
this constitutes an additional employer funding further powers to the Chief Commissioner of
requirement or is funded from existing remuneration State Revenue to allow payroll tax liabilities to be
costs will depend on whether employers operate a reassessed and recovered after five years in
‘salary plus superannuation’ arrangement certain circumstances of underpayment of wages
(incremental additional superannuation cost) or a
tax officers to disclose information to the
‘total employment cost’ arrangement (funds the
Commonwealth Fair Work Ombudsman in
superannuation increment by way of a reduction to
certain circumstances, and
existing salary entitlements).
information to be publicly disclosed in certain
We strongly recommend that employers should start
circumstances.
planning how this SG increase will be implemented
and communicated to employees. For a discussion No FBT on airport car parking
of some of the issues to consider refer to our
In Virgin Australia Airlines Pty Ltd v Commissioner
previous Tax Alert.
of Taxation [2021] FCA 523, the Federal Court has
found that aircrafts (not the home base airports)
June 2021
PwC 5PwC’s Monthly Tax Update
were the primary place of employment for flight and FBT purposes in relation to sporting teams and staff
cabin crew which resulted in the employer not liable that have resided in Australia for more than
to pay fringe benefits tax (FBT) for car parking 183 days as a result of the circumstances that have
facilities that were located near home base airports eventuated from the COVID-19 pandemic. The
and provided to flight and cabin crew. The Court measure will apply to the 2020-21 and 2021-22
found that the amount of time spent performing income and fringe benefits tax years.
duties at the home base terminal (or any other
terminal which is visited by crew on a particular day) QLD payroll tax on common law
is far outweighed by the time spent performing employment arrangements
duties on the aircraft(s) during a daily roster.
In Compass Group Education Hospitality Services
Business premises can include an aircraft and that
Pty Ltd & Anor v Commissioner of State Revenue
was considered to be the primary place of their
(Qld) 2021 QCA 98 the Queensland Court of Appeal
employment “from which or at which the employee
has found that the taxpayers did not procure the
performs duties”.
services of their employees under employment
FBT car parking threshold for agency contracts but rather they were common law
employers. Under the arrangement, the taxpayers
2021-22 FBT year entered into contracts to provide to a school and
The Australian Taxation Office has advised that the hospital suitably qualified staff to perform agreed
car parking threshold for the FBT year commencing services, supervise the staff and ensure compliance
1 April 2021 is AUD 9.25 (up from AUD 9.15). For with occupational health and safety requirements.
this and other key FBT thresholds for the year The Court rejected the appellants’ contentions that
commencing 1 April 2021, refer to this ATO listing. since the payroll tax law applies to a common law
employer, and the dictionary definition of “wages”
FBT and New Zealand sporting does not apply in respect of an employment agency
teams contract, they were entitled to an exemption under
section 13J of the Payroll Tax Act 1971 (QLD). The
As part of the 2021-22 Federal Budget, the
Court found that the employees’ remuneration for
Government announced that it would ensure that
their services was subject to QLD payroll tax.
New Zealand maintains primary taxing rights for
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Norah Seddon, Sydney Adam Nicholas, Sydney Greg Kent, Melbourne
Partner Partner Partner
+61 (2) 8266 5864 +61 (2) 8266 8172 +61 (3) 8603 3149
norah.seddon@pwc.com adam.nicholas@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
Global Tax Update
Latest news from international tax and transfer pricing
ATO early engagement service engagement process to provide certainty to foreign
investors investing in Australia. The new early
for inbound investors engagement service is intended to operate within
As part of the 2021-22 Federal Budget, the commercial timeframes, integrate with the tax
Government has announced that the Australian aspects of the Foreign Investment Review Board
Taxation Office (ATO) will introduce a new early approval process and be tailored to the needs of
June 2021
PwC 6PwC’s Monthly Tax Update
each investor. With consultation during May and the PCG and in particular the importance of
June 2021, the new service is expected to be maintaining robust documentation and evidence for
available from 1 July 2021. arrangements. Refer to PwC’s Tax Alert for more
information.
Update to information exchange
countries for MITs ATO’s approach to permanent
As part of the 2021-22 Federal Budget, the establishments and COVID-19
Government announced that the list of countries The ATO has updated Taxation Ruling TR 2002/5
with which Australia has an exchange of information which considers what is ‘a place at or through which
agreement for the purposes of applying the lower a person carries on any business’ in the definition of
managed investment trust (MIT) withholding tax will permanent establishment (PE) in subsection 6(1) of
be updated to include further countries. the Income Tax Assessment Act 1936 (Cth).
Specifically from 1 January 2022, residents of The ruling has been updated to provide an example
Armenia, Cabo Verde, Kenya, Mongolia, of the international travel restrictions in response to
Montenegro and Oman (new “information exchange COVID-19 as an extraordinary circumstance where
countries”) will be eligible for the 15 per cent a presence in Australia of more than six months
withholding tax rate on fund payments from MITs may not constitute temporal permanence giving rise
instead of the default withholding tax rate of 30 per to a permanent establishment. The updated ruling
cent. applicable to certain fund payments made to a notes that temporal permanence remains a question
recipient in an “information exchange country”. of fact and degree.
Tax treaty update Draft update to OECD Model
As part of the 2021-22 Federal Budget, it was Tax Convention
announced that AUD 6 million in funding would be The Organisation for Economic Cooperation and
provided for the Treasury and ATO to accelerate the Development (OECD) has issued a draft update to
program of tax treaty negotiations. its commentary on the Model Tax Convention on
The Joint Standing Committee on Treaties has Income and on Capital. The update is in relation to
tabled a report supporting three treaty actions, Article 9 on the taxation of transactions between
including a new tax information exchange associated enterprises, and is intended to clarify its
agreement with Timor-Leste. A new tax information application, especially as it relates to domestic laws
exchange agreement with Timor-Leste will allow the on deductions for interest. These changes are
two countries to exchange information for the expected to be included in the next update to the
purpose of administering taxes associated with the Model Tax Convention.
Timor Sea Maritime Boundaries Treaty.
OECD and COVID-19
ATO compliance guidance on The OECD has also issued the following reports on
intangible arrangements tax administrators and tax policy responses to
The ATO has issued draft practical compliance COVID-19:
guideline PCG 2021/D4 on cross-border Tax Administration: Digital Resilience in the
arrangements connected with intangibles. The draft COVID-19 Environment, which considers the
PCG covers a broad range of issues including impact of digitalisation of tax administration in
intangible transfers, the development, dealing with the COVID-19 crisis, with a
enhancement, maintenance, protection and particular focus on taxpayer services,
exploitation (DEMPE) functions, and the compliance risk management, remote working,
characterisation of intangible payments. There is a IT systems and providing support for wider
significant focus on transfer pricing, and the ATO government.
notes that numerous other Australian tax laws may Tax Policy Reforms 2021 – Special Edition on
also be relevant, including capital gains tax (CGT), Tax Policy during the COVID-19 Pandemic,
withholding tax, the general anti-avoidance rules which provides an overview of the tax measures
(GAAR), and diverted profits tax (DPT). introduced during the COVID-19 crisis across
The draft PCG outlines a framework for how the almost 70 jurisdictions, including all OECD and
ATO proposes to assess whether arrangements G20 countries and 21 additional members of the
involving intangibles will be considered high, OECD/G20 Inclusive Framework on Base
medium or low risk. Any taxpayer that has related Erosion and Profit Shifting.
party arrangements involving intangibles, or those
that are considering potential new intangible
arrangements, should consider the ATO’s views in
June 2021
PwC 7PwC’s Monthly Tax Update
Other OECD updates 28 per cent and changing international tax rules.
Refer to this PwC Insight for further details.
In other OECD news:
The Taxing Wages 2021 annual report analyses Excise relief for small distillers
taxes paid on wages in OECD countries. The and brewers
report covers income taxes, social security The federal government has announced that eligible
contributions, payroll taxes and cash benefits, brewers and distillers will be able to receive a full
and illustrates how these taxes and benefits are remission of excise paid up to an annual cap of AUD
calculated in each member country and 350,000. This is an increase from the entitlement of
examines how they impact household incomes. a refund of 60 per cent up to an annual cap of AUD
A report on the Impact of the Growth of the 100,000.
Sharing and Gig Economy on VAT/GST Policy
and Administration is aimed at assisting tax Heavy vehicle road user charge
authorities in designing and implementing an In the 2021-22 Federal Budget, the government
effective value added tax policy response to the announced that it will increase the heavy vehicle
growth of the sharing and gig economy. road user charge from 25.8 cents per litre to
The Conference of the Parties to the Multilateral 26.4 cents per litre from 1 July 2021. As the Road
Convention to Implement Tax Treaty Related User Charge is collected via the Fuel Tax Credit
Measures to Prevent Base Erosion and Profit System, it will result in a decrease in Fuel Tax Credit
Shifting (MLI) has approved an opinion in entitlements for business operating fleets of heavy
accordance with Article 32 of the MLI. The on-road vehicles.
opinion contains a series of guiding principles for
addressing questions about the interpretation Regulations to facilitate free trade
and implementation of the MLI agreements
Update to UN Model Convention The Customs Amendment (Product Specific Rule
Modernisation) Regulations 2021 have been made
The Committee of Experts on International
to facilitate consequential amendments following the
Cooperation in Tax Matters of the United Nations
Customs Amendment (Product Specific Rule
(UN) has approved recommended language to be
Modernisation) Act 2021 (the PSR Modernisation
adopted in the UN Model Tax Convention (MTC) in
Act). The PSR Modernisation Act amends the
response to Automated Digital Services (ADS). The
Customs Act 1901 (Cth) to facilitate and streamline
OECD has been working to achieve consensus in
the way in which the product specific rules of origin
G20 member states and the 139 countries that
(PSRs) of six of Australia’s free trade agreements
comprise the Inclusive Framework on redesigning
(FTAs) are given effect domestically. These six
the existing tax system to meet the challenges of the
FTAs are the:
digitalising economy (Pillar One and Pillar Two
proposals). The UN’s tax committee has Australia‑United States Free Trade Agreement
recommended an alternative set of rules, about (AUSFTA)
which countries could bilaterally agree for ADS. Thailand‑Australia Free Trade Agreement
Accordingly, this update will only have an impact (TAFTA)
when two contracting states negotiate (or Australia‑New Zealand Closer Economic
renegotiate and amend) a tax treaty between them. Relations Agreement (ANZCERTA)
Therefore, it may have less widespread effect than
any consensus to which countries agree in Australia‑Chile Free Trade Agreement (ACLFTA)
discussions being led by the OECD in conjunction Malaysia‑Australia Free Trade Agreement
with the G20 and the Inclusive Framework (MAFTA); and
member countries. Refer to this PwC Insight Korea‑Australia Free Trade Agreement (KAFTA).
for further details.
The purpose of the Regulations is to repeal the
US Tax updates relevant parts of each regulation that prescribe
PSRs for each agreement. The Regulations also
On 28 April 2021, United States President Joe
make technical amendments to each regulation to
Biden called on Congress to enact the newly
align them more closely with the FTA they
released USD1.8 trillion “American Families Plan”
implement, to reflect modern drafting practice and
and the previously released USD2.3 trillion
for consistency across the regulations.
“American Jobs Plan”. These tax plans are intended
to be paid for by tax increases on higher income
individuals, increasing the corporate tax rate to
June 2021
PwC 8PwC’s Monthly Tax Update
Duty import where goods are purposes of item 21 to schedule 4 of the Customs
Tariff Act 1995 that can be imported into Australia
re-exported for repair or alteration, and are to be re-exported, at
The Customs By-laws No 2100073 and No 2100072 the dutiable rate of “Free”. Where the imported item
have been made to prescribe goods for the is classified as a superyacht, it must be re-exported
within 12 months of the date of entry.
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.j.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 (4) 0367 8059 +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
GST legislative determinations on decreasing adjustment relating to the acquisition
of EFTPOS interchanges services so long as the
EFTPOS interchange services requirements of the determination are satisfied.
The following legislative instruments have been The Goods and Services Tax: Waiver of Tax
made by the Commissioner of Taxation relating to Invoice Requirement (eftpos Interchange
goods and services tax (GST) and the acquisition of Services Reports) Determination 2021 that
EFTPOS interchanges services: provides that a tax invoice is not required to be
The Goods and Services Tax: Waiver of held before attributing an input tax credit for
Adjustment Note Requirement (eftpos EFTPOS interchange services so long as the
Interchange Services Reports) Determination requirements of the determination are satisfied.
2021 that provides that an adjustment note is not These instruments commenced on 21 May 2021.
required to be held before attributing a
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Matt Strauch, Melbourne Michelle Tremain, Perth Adrian Abbott, Sydney
Indirect Tax Leader Indirect Tax Leader Partner
+61 (3) 8603 6952 +61 (8) 9238 3403 +61 (2) 8266 5140
matthew.strauch@pwc.com michelle.tremain@pwc.com adrian.abbott@pwc.com
Jeff Pfaff, Brisbane Brady Dever, Sydney Mark Simpson, Sydney
Partner Partner Partner
+61 (7) 3257 8729 +61 (2) 8266 3467 +61 (2) 8266 2654
jeff.pfaff@pwc.com brady.dever@pwc.com mark.simpson@pwc.com
Suzanne Kneen, Melbourne
Partner
+61 (3) 8603 0165
suzanne.kneen@pwc.com
June 2021
PwC 9PwC’s Monthly Tax Update
Personal Tax Update
Reforms for individual to AUD 126,000. For further details, refer to PwC’s
Federal Budget Insights and Analysis.
tax residency
As part of the 2021-22 Federal Budget it was
Other Federal Budget measures
announced that the individual tax residency rules In other 2021-22 Federal Budget measures the
would be replaced with a new, modernised Government announced that:
framework, following the review undertaken by the the exclusion that prevents the first AUD 250 of
Board of Taxation ‘Reforming Individual Tax self-education expenses being deductible for
Residency Rules - A Model for Modernisation’. income tax purposes will be removed with effect
Under the proposed residency test, an individual will from the first income year after the date of Royal
be an Australian tax resident if they are physically Assent of the enabling legislation
present in Australia for 183 or more days in a year.
New Zealand maintains primary taxing rights in
This primary test will be supplemented by secondary
relation to sporting teams and support staff that
tests looking at objective criteria, such as whether
have resided in Australia for more than 183 days
an individual has the right to permanently reside in
as a result of the circumstances that have
Australia, whether they have Australian
eventuated from the COVID-19 pandemic. The
accommodation or have family located in Australia,
measure will apply to the 2020-21 and 2021- 22
that may deem the individual to be a tax resident.
income years.
The measure will have effect from the first income
year after the date of Royal Assent of the enabling Superannuation benefits paid to
legislation. For further details, refer to PwC’s ex-defence force members
Federal Budget Insights and Analysis.
The ATO has issued draft legislative instruments
Low and middle income tax MS 2021/D1 and MS 2021/D2 that specify
alternative methods for calculating the tax-free and
offset extended taxable components of superannuation benefits paid
The Government announced in the 2021-22 Federal to ex-defence force members. These instruments
Budget that it will extend the Low and Middle follow the decision of the Full Federal Court in
Income Tax Offset until 30 June 2022 from the Federal Commissioner of Taxation v Douglas [2020]
previous expiry date of 30 June 2021. This benefit FCAFC 221 that found certain invalidity benefits to
ranges from AUD 255 for taxpayers earning less be superannuation income streams benefits or
than AUD 37,000 and up to AUD 1,080 for workers superannuation lump sum benefits.
earning between AUD 48,000 and AUD 90,000. The
Comments on the draft legislative instruments are
tax offset then phases out for taxpayers earning up
due by 2 June 2021.
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Simon Le Maistre, Melbourne Glen Frost, Sydney Amy Etherton, Newcastle
Partner Partner Partner
+61 (3) 8603 2272 +61 (2) 8266 2266 +61 (2) 4925 1175
simon.le.maistre@pwc.com glen.frost@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
Victorian Budget COVID-19. Whilst reform of state taxes has, in more
recent times, been the focus for some States and
The 2021-22 Victorian State Budget was delivered Territories, the Treasurer considered this topic to be
on 20 May 2021 by Treasurer Tim Pallas. As with “off the agenda” for the time being while Victoria’s
the previous Victorian Budget, the 2021-22 Budget budgetary position “settles in”. Instead, this Budget
focuses on recovery from the economic impact of
June 2021
PwC 10PwC’s Monthly Tax Update
focuses on Victoria’s economic recovery, with a the land tax concession reserved for charities,
heavy emphasis on tax increases. clubs and associations will no longer apply to
The Victorian Government is expecting Victoria’s private gender-exclusive clubs
economy to grow by 6.5 per cent in 2021-22. the vacant residential land tax exemption for new
Taxation revenue is expected to grow by an annual developments will be extended to apply for up to
average rate of 6.9 per cent a year over the forward two years.
estimates, reflecting an improved outlook and what A new windfall gains tax is also set to apply from
the Government refers to as “targeted revenue 1 July 2022, equivalent to an amount of up to
initiatives”. Net debt is expected to reach AUD 50 per cent associated with planning decisions to
102.1 billion this financial year and grow to AUD rezone land that create an uplift in land valuations
156.3 billion by the end of the forward estimates. above AUD 100 000. The tax will be applied to the
From a duties perspective, the following measures total value uplift for windfalls above AUD 500,000,
were announced: with the tax phasing in from AUD 100,000.
for contracts entered into from 1 July 2021, a The State Taxation and Mental Health Acts
new duty rate will be introduced for “high value” Amendment Bill 2021 has already been introduced
transactions (for all types of dutiable into the Victorian Parliament to give effect to most of
transactions). The duty payable will be increased these and other measures (other than the windfall
from a maximum general rate of 5.5 per cent to gains tax, for which only limited details are currently
AUD 110,000 plus 6.5 per cent of dutiable value available). See also the employment taxes section
in excess of AUD 2 million. Relevant of this update for the payroll revenue measures
arrangements entered into before this date are announced in the Budget. Further information about
expected to be grandfathered. the Victorian budget is available in this Tax Alert.
the off-the-plan concession eligibility threshold Northern Territory Budget
for land transfer duty will increase to AUD 1
million for home buyers (for contracts entered The 2021-22 Northern Territory Government Budget
into from 1 July 2021 to 30 June 2023). was delivered on 4 May 2021 by Treasurer Michael
Consistent with the eligibility requirements, the Gunner. The focus of the Budget is “Leading the
property must be the principal place of residence Comeback” and bringing more investment to the
for at least one of the purchasers. Northern Territory with land releases, the
introduction of dedicated Commissioners for
from 21 May 2021 to 30 June 2022, a
Infrastructure, Investment, and Major Projects, and
concession of 100 per cent of land transfer duty
building a manufacturing precinct, as well as support
payable will be available for contracts entered
for opportunities for growth through resources,
into to purchase new residential property in the
renewables, tourism and parks. For the 2021-22
Melbourne region with a dutiable value of up to
Budget, there is an estimated AUD 1.36 billion
AUD 1 million when the property has been
deficit. Net debt is projected to be AUD 9 billion in
unsold for 12 months or more since completion.
2021-22, increasing to AUD 11.41 billion by 2024-
A 50% concession will be available for contracts
25.
entered into from 1 July 2021 to 30 June 2022
for purchases of new residential property that From a tax perspective, changes to revenue policy
have been unsold for less than 12 months. This in the 2021‑22 Budget will mainly affect gambling
concession does not apply to any foreign taxes, with an increase to the maximum annual tax
purchaser additional duty. cap applicable to bookmakers and betting
exchanges from 500,000 to 1 million revenue units;
From a land tax perspective, from 1 January 2022:
a reduction in the rate of bookmaker and betting
a new land tax rate will be introduced. The rate exchange tax on gross monthly profits from ten to
will increase by: five per cent and an expansion of bookmaker and
– 0.25 percentage points to 1.55 per cent for betting exchange tax to total monthly betting profits,
taxable landholdings exceeding AUD 1.8 including sports and other betting, in addition to
million; and racing betting.
– 0.3 percentage points to 2.55 per cent for Other changes to revenue laws introduced prior to
taxable holdings exceeding AUD 3 million the 2021‑22 Budget include:
the land tax-free threshold will increase from narrowing the types of expenditure able to be
AUD 250,000 to AUD300,000. However, no deducted as operating costs from mineral royalty
change will be made to the tax-free threshold for payments for mining companies
properties held through a trust (The trust rate modernising the delegation provisions contained
scale will remain unchanged) in the Mineral Royalty Act 1982 (NT), and
June 2021
PwC 11PwC’s Monthly Tax Update
amending the Taxation Administration Act 2007 approach should also apply in the statutory context
(NT) to improve the legislative framework of the amended stamp duty laws (in New South
governing special tax return arrangements for Wales and elsewhere, that now include the express
conveyancing agents. deeming provisions) or the income tax legislation.
In addition, two stamp duty concessions – the For further information please see this Tax Alert.
Territory home owner discount and the senior,
pensioner and carer concession – will expire on
30 June 2021. NSW Ruling on Build to Rent land
NSW landholder duty and wind tax arrangements
farm assets Revenue New South Wales (Revenue NSW) has
released Revenue Ruling G 014 setting out when an
The Supreme Court of New South Wales has held in eligible build to rent property will qualify for the 50
SPIC Pacific Hydro Pty Ltd v Chief Commissioner of per cent reduction in land value for land tax
State Revenue (NSW) [2021] NSWSC 395 that wind purposes. This concession applies from the 2021
farm assets were tenant's 'fixtures' and were land tax year to 2040. The Ruling sets out
accordingly, dutiable assets. The assets consisted requirements relating to the labour force used in the
of wind farm turbines, a switchyard, substation, construction, how a proportionate reduction in the
control building, hardstands, meteorological masts concession may be applied and the restrictions on
and roads. The Court found that the relevant subdivision that apply.
authorities showed that whether an item of plant or
equipment on land is a chattel or a fixture depends Victorian land tax exemption
on the degree and object of annexation (i.e.
The Victorian Court of Appeal has held in Lifestyle
objective intention with which the item was put in
Investments 1 Pty Ltd v Commissioner of State
place), and that the wind towers and other
Revenue [2021] VSCA 107 that two parcels of land
generation and transmission infrastructure were
used as caravan parks were not wholly exempt from
fixtures because they were substantially attached to
land tax on the basis the land was only used in part
the land, and were affixed to the land for the
as registered caravan parks.
purposes of its better enjoyment or use as a wind
farm. The whole of each parcel of land was registered as
a caravan park in accordance with the Residential
Note that the particular acquisition in this case
Tenancies (Caravan Parks and Movable Dwellings
predated the amendments to the Duties Act 1997
Registration and Standards) Regulations 2010,
(NSW) in the form of section 147A that provides that
however each caravan park was developed on a
land for the purposes of landholder duty includes
staged basis and some stages were still under
anything fixed to the land, regardless of whether it is
development at the time of the land tax assessment.
a fixture at common law (and similar amendments
had previously been made in most other Australian The majority of the Court of Appeal considered that
States and Territories). As a result, the while registration of the land as a caravan park was
fixture/chattel classification has limited future necessary to attract the exemption in section 77 of
relevance in a stamp duty context. However, the the Land Tax Act 2005 (Vic), section 77 also
classification of assets as fixtures or chattel required that the whole of the land was actually
continues to be important in determining whether used as a caravan park. To the extent that the
assets are Taxable Australian Real Property under whole of the land was not used as a caravan park,
Division 855 of the Income Tax Assessment Act an apportionment was required to be carried out to
1997 (Cth). determine the extent of the land subject to the land
tax exemption.
This decision also raises a number of questions
about the appropriate valuation methodology to be Northern Territory special
used when valuing fixtures from both a stamp duty
and income tax perspective. Both the Commissioner
arrangements
and the taxpayer had put forward valuations using a The Taxation Administration Amendment Bill 2021
Depreciated Optimised Replacement Cost (DORC) has passed the Northern Territory Parliament. The
methodology. However, the Court rejected this Bill contains improvements to the special
approach based on the statutory context, preferring arrangement provisions in the Taxation
instead a profit rental approach. This is a departure Administration Act 2007 (NT) where the
from the valuation approach commonly used for Commissioner of Territory Revenue may grant a
most leasehold improvements and non-building taxpayer approval to access certain exemptions for
plant and equipment on freehold land for both stamp lodging returns. It provides the Commissioner of
duty and income tax purposes and creates Territory Revenue with further powers to grant
uncertainty regarding whether this alternative special arrangements and imposes penalties for
June 2021
PwC 12PwC’s Monthly Tax Update
failing to comply with an approved special a number of minor and technical amendments to
arrangement. clarify and simplify tax administration, including
among other things, rectifying an error in drafting
Australian Capital Territory that applies duty to acquisitions of interests in
revenue legislation short- and long-term commercial leases;
clarifying when duty must be paid on the
The Revenue Legislation Amendment Bill 2021
acquisition of an option over dutiable property;
(ACT) was introduced and passed the Australian
excluding corporations and trustees from
Capital Territory Parliament. The Bill, makes a
exemptions on land tax involving an owner’s
number of amendments to ACT taxation legislation
principal place of residence.
including:
the removal of the current expiry date of South Australian land tax for
30 June 2021 for the affordable community discretionary trusts
housing land tax exemption
The Land Tax (Discretionary Trusts) Amendment
conveyance duty concessions for pensioners Bill 2021 (SA) has been introduced to the South
who have a disability purchasing residential Australian Parliament to provide an additional
shares in not-for-profit supportive housing 12 months for trustees of discretionary trusts to
properties nominate designated beneficiaries to avoid land tax
the application of penalty tax provisions under surcharges. The Bill was introduced to address
the Taxation Administration Act 1999 (ACT) to issues caused by delays in taxpayers receiving their
overdue and unpaid rates on land owned by land tax assessments for the 2020-21 year.
corporations and trusts, and
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 Matthew Sealey, Sydney
Partner Partner Partner
+61 (8) 9238 3001 +61 (2) 8266 1055 +61 (2) 400 684 803
rachael.munro@pwc.com cherie.mulyono@pwc.com matthew.sealey@pwc.com
Superannuation Update
Federal Budget superannuation expand the superannuation “downsizer” scheme
that allows an individual to make a non-
measures concessional contribution from the proceeds of
A number of measures were announced as part of selling their principal residence that was owned
the 2021-22 Federal Budget in relation to for ten or more years so that it applies to
superannuation including: individuals aged 60 years or over (in place of the
existing minimum 65 year age limit). This
increase to the amount of voluntary contributions
measure is proposed to apply from the start of
that can be released under the First Home Super
the first financial year after enactment of the
Saver Scheme that allows for home buyers to
amending law (expected to be 1 July 2022).
save for a deposit inside of their superannuation
fund, from AUD 30,000 to AUD 50,000. This abolish the work test for individuals aged
measure is proposed to apply from the start of between 67 and 74 years so they will be able to
the first financial year after enactment of the make non-concessional contributions (including
amending law (expected to be 1 July 2022). The under the bring-forward rules) or under salary
Government will also make minor technical sacrifice arrangements subject to the existing
changes to the legislation underpinning the cap rules. This measure is proposed to apply
Scheme, which will apply retrospectively from from the start of the first financial year after
1 July 2018. enactment of the amending law (expected to be
1 July 2022).
June 2021
PwC 13PwC’s Monthly Tax Update
relax the residency requirements for SMSFs and Draft law for calculating exempt
small APRA Regulated Funds (SAFs) through an
extension of the central management and control current pension income
safe harbour test from two years to five years Treasury has released exposure draft law and
and remove the active member test for both explanatory materials that seek to give effect to the
SMSFs and SAFs. This measure is proposed to Government’s 2019-20 Budget measure to reduce
apply from the start of the first financial year after costs and simplify reporting for superannuation
enactment of the amending law (expected to be funds by streamlining some administrative
1 July 2022). requirements for the calculation of exempt current
allow members of SMSFs with legacy pensions pension income (ECPI). Specifically, the draft law
such as market-linked, life-expectancy and provides amendments to the Income Tax
lifetime products to convert these products into Assessment Act 1997 (Cth) to:
contemporary pensions such as the Account provide choice for superannuation fund trustees
based pension product. Individuals will be able to to use their preferred method of calculating
exit these products with any reserves for a two- ECPI, where the fund is fully in the retirement
year period following the enactment of the phase for part of the income year, but not for the
enabling legislation. entire income year, and
For further details of these measures, refer to PwC’s remove a redundant requirement for
Federal Budget Insights and Analysis. superannuation funds to obtain an actuarial
certificate when calculating ECPI, where the fund
Supporting draft regulations for is fully in the retirement phase for all of the
Your Future, Your Super reforms income year.
The Your Future, Your Super reforms that are Comments can be made on the proposed measures
scheduled to commence on 1 July 2021, require by 18 June 2021.
trustees of registrable superannuation entities and
self-managed superannuation funds (SMSFs) to act Super data transformation
in the best financial interests of beneficiaries, limit reporting and APRA guidance
the creation of multiple superannuation accounts for
The Australian Prudential Regulation Authority
new employees, hold underperforming funds to
(APRA) has published frequently asked questions
account and strengthen protections around the
(FAQs) on the Reporting Standards of phase 1 of
retirement savings of members, among a series of
the Superannuation Data Transformation. Under the
other reforms. The primary legislation to support the
new reporting standards, the due date for the first
reforms are included in the Treasury Laws
submission of the majority of all the new
Amendment (Your Future, Your Super) Bill 2021,
superannuation forms is 30 September 2021. APRA
which is currently before Parliament.
expects to continue to release FAQs on a regular
Exposure draft regulations and the accompanying schedule until that first due date.
explanatory statement to support the measures
APRA has also released further information to assist
have been released for comment. The proposed
entities, including superannuation funds, in
regulations aim to:
preparing for APRA Connect which is the new data
Outline the methodology for the annual collection solution for reporting entities to lodge
performance test and re-opening test, as well as entity information and regulatory data with APRA.
requirements for notifications to members. The first data collections to be introduced in APRA
Prescribe the definition of a “stapled fund”, Connect once it goes live will be the Superannuation
including tie-breaker rules for determining which Data Transformation collections. A test environment
fund is to be an employee’s stapled fund where is planned to be available from 17 June 2021 with
they have multiple existing funds. entities expected to log in and become familiar with
Specify the formulas as a basis for ranking its functionality from this date.
products on the YourSuper comparison tool. SMSFs and pension payments
Set out the manner in which the portfolio
The Australian Taxation Office (ATO) has released
holdings disclosures are organised.
guidance for SMSFs that are making account based
Prescribe the information that must be included pension payments. The guidance confirms that once
with the notice of an Annual Members’ Meeting. a pension commences, there is an ongoing
Further strengthen the prohibition on funds requirement for the trustee of a complying
offering inducements to employers. superannuation fund to ensure the pension
Comments were due by 25 May 2021. standards in the super laws, including meeting the
June 2021
PwC 14PwC’s Monthly Tax Update
minimum pension payment requirements, are
satisfied.
Let’s talk
For a deeper discussion of how these issues might affect your business, please contact:
Naree Brooks, Melbourne Marco Feltrin, Melbourne Abhi Aggarwal, Brisbane
Partner Partner Partner
+ 61 (3) 8603 1200 + 61 (3) 8603 6796 + 61 (7) 3257 5193
naree.brooks@pwc.com marco.feltrin@pwc.com abhi.aggarwal@pwc.com
Alice Kase, Sydney Matthew Strauch, Melbourne Ken Woo, Sydney
Partner Partner Partner
+ 61 (2) 8266 5506 + 61 (3) 8603 6952 + 61 (2) 8266 2948
alice.kase@pwc.com matthew.strauch@pwc.com ken.woo@pwc.com
Legislative Update
Federal Parliament resumed sittings on redundant, employee for the purpose of
11 May 2021, which was the day that the assisting that employee to gain new
Federal Budget was handed down. Since our last employment (applicable to benefits provided
update, the following new Commonwealth tax and on or after 2 October 2020)
superannuation legislation has been introduced into – extend the operation of the junior minerals
Federal Parliament: exploration incentive for a further four years
Treasury Laws Amendment (2021 Measures to continue to encourage mineral exploration
No. 3) Bill 2021, which was introduced into the companies to undertake greenfields minerals
House of Representatives on 13 May 2021, exploration in Australia through to the 2024-
amends the income tax law to: 25 income year
– increase the low-income threshold for the – provide a targeted capital gains tax (CGT)
Medicare levy and Medicare levy surcharge in exemption for CGT events that occur on
line with movements to the Consumer Price entering into, varying or terminating formal
Index; written arrangements under which an older
– make certain payments to thalidomide person or person with a disability acquires,
survivors exempt from income tax; varies or disposes of a granny flat interest
(applicable from the first 1 July after the Bill
– make certain disaster recovery grants non- receives Royal Assent)
assessable non-exempt income; and
– amends the International Tax Agreements Act
– provide for certain entities to become 1953 (Cth) to disregard days spent in
deductible gift recipients. Australia due to COVID-19 by New Zealand
Treasury Laws Amendment (2021 Measures No sportspersons on teams participating in
4) Bill 2021, which was introduced into the cross-border competitions and their support
House of Representatives on 26 May 2021, staff in determining whether income derived
proposes amendments to tax law to give effect to from such competitions is taxable in Australia
a number of 2020-21 and 2021-22 Federal – make the low and middle income tax offset
Budget announcements including measures to: available in the 2021-22 income year.
– provide employers with an exemption from
fringe benefits tax on providing training or
education to a redundant, or soon to be
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
June 2021
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