10 Jun 2021 ATO Rulings
- LCR 2021/D1 Temporary full expensing
This draft Ruling is about provisions for temporary full expensing 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 (the JobMaker Tax Plan legislation).
The final Ruling when issued will:
- outline the operation of temporary full expensing (TFE)
- provide views on interpretive issues
- explain the interaction of TFE with the instant asset write-off and backing business investment; and
- explain and illustrate how TFE applies to small business entities.
Date of effect: When final, this Ruling will be a public ruling for those who rely on it in good faith, effective both before and after its date of issue having regard to relevant application dates of the JobMaker Tax Plan legislation.
- CR 2021/40 Amaysim Australia Limited – major distribution (special dividend and return of capital)
This Ruling sets out income tax consequences for minority shareholders of Amaysim Australia Limited who received a special dividend of 26 cents per share and a return of capital payment of 24 cents per ordinary share on 27 April 2021 (the Major Distribution).
Date of effect: This Ruling applies from 1 July 2020 to 30 June 2021.
- CR 2021/41 Xplore Wealth Limited – scheme of arrangement
This Ruling sets out the tax consequences for shareholders of Xplore Wealth Limited (Xplore) who disposed of their Xplore shares to HUB24 Limited on 2 March 2021 (Implementation Date) by way of a scheme of arrangement.
Date of effect: This Ruling applies to the income year in which the Implementation Date (2 March 2021) occurred.
- PR 2021/5 Income tax: W.A. Blue Gum Project 2021
This Product Ruling sets out the Commissioner's opinion on the way in which the relevant provisions identified in the Ruling section apply to the defined class of entities that takes part in the scheme to which this Product Ruling relates. In this Product Ruling, the scheme is referred to as W.A. Blue Gum Project 2021.
Date of effect: This Product Ruling applies prospectively from 9 June 2021 (the date it is published). It applies only to the specified class of entities that enter into the scheme from 9 June 2021 until 30 June 2021, being the closing date for entry into the scheme. This Product Ruling provides advice on the availability of tax benefits to the specified class of entities for the income years up to 30 June 2031, being its period of application. It will continue to apply to those entities even after its period of application has ended for the scheme entered into during the period of application.
- STP 2021/D1 Draft Taxation Administration – Single Touch Payroll – 2021–22 year Withholding Payer Number Exemption 2021
This instrument exempts certain entities that do not have an Australian business number (ABN) but instead have a withholding payer number (WPN) from reporting under Single Touch Payroll (STP) for the 2021–22 financial year.
The effect of this instrument is to extend the existing class exemption for relevant entities, provided by the Taxation Administration – Single Touch Payroll – Exemption for Employers with a Withholding Payer Number (F2019L00437) and Taxation Administration – Single Touch Payroll – 2020–21 year Withholding Payer Number Exemption 2020 (F2020L00801) legislative instruments for an additional financial year.
Date of effect: This instrument commences on 1 July 2021. It applies retrospectively to ensure that taxpayers are not disadvantaged by not having the exemption provided by this instrument apply from the beginning of the financial year.
- TD 2015/16W Income tax: what is the car limit under section 40-230 of the Income Tax Assessment Act 1997 for the 2015-16 financial year?
Taxation Determination TD 2015/16 is withdrawn with effect from 10 June 2021. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates.
Draft guidance on Intangible Arrangements released
Draft Practical Compliance Guideline PCG 2021/D4 sets out the ATO’s compliance approach to international arrangements connected with intangible assets.
This guidance will help taxpayers understand the ATO’s compliance approach to international arrangements connected with the development, enhancement, maintenance, protection and exploitation (DEMPE) of intangible assets and/or involving the migration of intangible assets.
You can have your say on PCG 2021/D4 and provide your comments on the draft by emailing IntangiblesArrangements@ato.gov.au until 16 July 2021.
More information can be found here.
Advice under development
The ATO is developing advice and guidance on the following matters:
- Aggregated turnover issues for large business
- Capital allowances: construction of capital assets
- Car expenses – reimbursements from employer
- Corporate loss carry back tax offset – loss carry back choice
- Employee share schemes – what constitutes a ‘genuine disposal restriction’
- Expenses associated with vacant land
- Misappropriated or stolen funds
- Research and development – expenditure not at risk
- Royalties and software
- Temporary full expensing
- Self-managed super funds – education directions
- Self-managed super funds – rectification directions
- Super benefits in breach of rules
- Super guarantee – Part 7 penalties
- Forex realisation event 4
- Intangibles arrangements
- OECD hybrid mismatch rules
- Taxing US and UK resident financial institutions under US and UK taxation conventions
- GST – adjustable beds
- GST – supply of burial rights by a government agency
- GST– care services and residential accommodation
- Time limits on entitlements to tax credits
- Excise refund scheme – meaning of 'legally and economically independent'
- Excise Refund Scheme for alcohol manufacturers
- Fuel tax credits – public roads
- Luxury car tax – principle purpose
- Administration of penalties in relation to electronic sales suppression tools
- Single Touch Payroll lodgment obligations – due dates and deferrals
Capital allowances – reviews in progress
The ATO has started reviews of the following assets.
- Assets used for salt manufacturing and refining (excluding harvesting)
- Assets used in casino operations industry
- Assets used in medical and surgical equipment manufacturing industry
- Assets used in the clothing manufacturing industry
- Assets used in the fertiliser manufacturing industry
- Assets used in wooden furniture and upholstered seat manufacturing.
- E-bicycles and e-scooters
- Plastic safety screens