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Submissions

The Tax Institute is the most respected and influential contributor to the development of tax policy and administration in Australia. As part of this contribution, we prepare top level submissions on tax policy, administration and technical matters at both Federal and State levels. Non-confidential submissions prepared from 1996 onwards and covering legislation, ATO and Treasury consultative documents and papers, as well as rulings, determinations and a range of other ATO opinion and guideline documents, are available here.

  • The Tax Institute Submission | Draft Tax Ruling – Income tax: expenses associated with holding vacant land

    23 Sep 2021

    The Tax Institute welcomes the opportunity to make a submission to the Australian Taxation Office (ATO) in relation to Draft Taxation Ruling TR 2021/D5: Income Tax – expenses associated with holding vacant land (Draft Ruling).

    In the development of this submission, we have consulted with our SME and Tax Practitioner Technical Committee to prepare a considered response which represents the views of the broader membership of The Tax Institute.

    Broadly, the Draft Ruling provides a practical and useful guide for taxpayers seeking clarity around the operation and application of s 26-102 of the Income Tax Assessment Act 1997 (ITAA 1997). However, there are some areas that we consider require further guidance and examples from the ATO, including the application of the provisions to vacant land purchased by Special purpose investment vehicles that are not exempt under s 26-102(5) of the ITAA 1997.

  • The Tax Institute Submission | Review of R&D Tax Incentive Dual-Agency Administration Model

    16 Sep 2021

    As part of the 2021-22 Federal Budget, the Government announced that the Board would undertake a review to evaluate the dual-agency administration model for the Research and Development Tax Incentive (R&DTI). The terms of reference contained in the set out, among other things, the objectives of the Review.

    The R&DTI is jointly administered by the Australian Taxation Office (ATO) and Industry Innovation and Science Australia (IISA) and the Department of Industry, Science, Energy and Resources (DISER), with the ATO being responsible for the administration and processing of R&D tax offset claims, and IISA responsible for registering companies' R&D activities. The program is delivered
    by AusIndustry on behalf of IISA.

  • The Tax Institute Submission | Draft Revenue Ruling DA.047v3 | Landholder duty concessions for eligible roll-overs

    15 Sep 2021

    The Tax Institute welcomes the opportunity to provide comments to the State Revenue Office (SRO) in relation to draft revenue Ruling DA-047v3 Landholder duty - Duty concession on the interposition of a unit trust between stapled security holders and the stapled entities (Draft Ruling).

    In the development of this submission, we have closely consulted with our Victorian State Tax Committee to prepare a considered response which represents the views of the broader membership of The Tax Institute.

    The Tax Institute considers that the Draft Ruling requires further clarification regarding the application of paragraph 250DI(b) of the Duties Act 2000 (Vic) (Duties Act) and the interaction with other duty concessions.

  • The Tax Institute Submission | Venture Capital Tax Concessions Review

    15 Sep 2021

    The venture capital tax concessions programs seek to increase the level of venture capital investments in Australia and develop the skills and experience of Australian venture capital fund managers. The programs also aim to promote a culture of innovation and entrepreneurial risk-taking, by incentivising the use of investment vehicles dedicated to early-stage and later-stage start-ups and
    improving access to more and cheaper financing for these types of businesses. The programs encompass three types of investment structures that provide concessional treatment for venture capital investors. These structures are:

    • early-stage venture capital limited partnerships (ESVCLPs)
    • venture capital limited partnerships (VCLPs); and
    • Australian Funds of Funds (AFOFs),

    The Tax Institute is of the view that the programs have had a positive impact on the growth of Australian venture capital, and have played a significant part in creating a vibrant start-up environment in Australia. The substantial impact of the programs on the Australian market could not have been anticipated at the time of their inception.

  • The Tax Institute Submission | Employee Share Schemes

    25 Aug 2021

    The Tax Institute welcomes the opportunity to make a submission to the Treasury in relation to the Exposure Draft Legislation and Explanatory Materials in relation to the announced changes to certain arrangements for employee share schemes (ESS).

    Our submission is limited to comments on:

    • Treasury Laws Amendment (Measures for a later sitting) Bill 2021: Employee Share schemes – Removing cessation of employment as a taxing point (Exposure Draft Legislation); and
    • Treasury Laws Amendment (Measures for a later sitting) Bill 2021: Employee Share schemes – Removing cessation of employment as a taxing point exposure draft explanatory materials (Exposure Draft Explanatory Materials).

  • The Tax Institute Submission | Patent Box

    18 Aug 2021

    The Tax Institute welcomes the opportunity to make a submission to the Treasury in relation to the Patent Box discussion paper on policy design, July 2021 (the Discussion Paper).

    The Tax Institute supports the introduction of a patent box which is consistent and compliant with the Organisation for Economic Co-operation and Development (OECD) Base Erosion Profit Shifting (BEPS) Action 5 Minimum Standard.

    The overall success of the patent box depends on a number of factors. Businesses will require certainty that the regime is commercially viable for them to apply and rely on. This will be evident in the legislation that gives effect to the patent box as well as the way in which it is proposed to be administered. While there are aspects of the legal framework for the research and development tax incentive (R&DTI) which are a useful starting point, the patent box has nuanced requirements which require a nuanced approach.

  • The Tax Institute Submission | Draft Taxation Ruling TR 2021/D4 – Income tax: royalties – character of receipts in respect of software

    18 Aug 2021

    The Tax Institute welcomes the opportunity to make a submission to the Australian Taxation Office (ATO) in
    relation to the draft Taxation Ruling TR 2021/D4 – Income tax: royalties – character of receipts in respect of
    software (Draft Ruling).

    We invite the ATO to consider our submission and respectfully request that further action as recommended in
    this submission is taken to enhance the Draft Ruling to ensure clear guidance and practical insight is provided
    to the community. We have set out below our main concerns in relation to the Draft Ruling, in particular:

    • matters which were within the scope of Taxation Ruling TR 93/12 Income tax: computer software (TR 93/12) but are not within the scope of the Draft Ruling should be addressed in interpretive guidance and not through guidance published on the ATO’s website;
    • we consider that further clarity and guidance including practical examples are required to demonstrate the way in which the Commissioner intends to apply copyright law principles and definitions to tax law principles and definitions; and
    • we consider that the Draft Ruling should apply on a prospective basis but to the extent that it does not, clarity should be provided as to the extent that it applies retrospectively and appropriate transitional arrangements should be made.

  • The Tax Institute Submission | Retirement Income Covenant

    11 Aug 2021

    The Tax Institute welcomes the opportunity to make a submission in response to the Government’s Retirement Income Covenant position paper.

    This submission has been developed in close consultation with The Tax Institute’s Superannuation Committee to provide comments on key issues which should be considered as part of the Government’s introduction of a retirement income (RI) covenant in the Superannuation Industry (Supervision) Act 1993 which is intended to outline a fundamental obligation of trustees to formulate, review regularly and give effect to a RI strategy. Our view is that the proposed RI covenant should not apply to trustees of self-managed superannuation funds.

    Please refer to our submission for further details.

  • The Tax Institute Submission | Draft Law Companion Ruling LCR 2021/D1 — Temporary full expensing

    09 Aug 2021

    The Tax Institute welcomes the opportunity to make a submission to the Australian Taxation Office (ATO) in relation to the Draft Law Companion Ruling LCR 2021/D1 — Temporary full expensing (draft Ruling).

    We appreciate the additional time provided to lodge this submission. We have consulted with our National Technical Committees in the development of this submission to obtain a breadth of views on issues that impact the broader membership of The Tax Institute.

    We provide the following comments and recommendations for your consideration to improve the draft Ruling which provides guidance in relation to the application of the provisions for temporary full expensing (TFE) of depreciating assets introduced by the Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020 and the Treasury Laws Amendment (2020 Measures No.6) Act 2020 (JobMaker tax plan legislation).

  • The Tax Institute Submission | NSW Property Tax Proposal

    02 Aug 2021

    The Tax Institute thanks the New South Wales (NSW) Government for its continued consultation in relation to the proposal to replace stamp duty and land tax with an annual property tax. The Tax Institute’s submission in relation to the NSW Government’s consultation paper, The NSW Budget 2020-2021; Buying in NSW, Building a Future; Creating Jobs and Securing Our Future (Consultation Paper) is accessible here.

    We were pleased to see a number of the concerns and recommendations in our first submission have been taken into consideration in the NSW Property Tax Proposal Progress Paper for June 2021 (Progress Paper). We welcome the opportunity to provide further comments in respect of the Progress Paper.