On 25 September 2014, Tax and Superannuation Laws Amendment (2014 Measures No 4) Bill 2014 was passed by the Senate without amendment.
The Bill amends:
- ITAA 1997 to amend the statutory debt limits for the thin capitalisation rules; increase the de minimis threshold for thin capitalisation limits; provide for a new gearing debt test for inbound investors; prevent the double counting of certain non-taxable Australian real property assets that can distort the application of the Principal Asset Test; and clarify the meaning of ‘permanent establishment’;
- ITAA 1936 and ITAA 1997 to make non-portfolio returns on equity to Australian resident companies exempt of Australian income tax;
- ITAA 1997 and Taxation Administration Act 1953 to require taxpayers to be issued with an annual tax receipt for the income tax assessed to them; and
- 15 Acts to make style changes, repeal redundant provisions, correct anomalous outcomes and make technical corrections.
For further details, see the Explanatory Memorandum.
The Bill now awaits Royal Assent.