Regulations have been made which are intended to prepare the Income Tax Regulations 1936 for sunsetting, update the cents per kilometre method for calculating car expenses and to give superannuation funds the option to either report the amount of superannuation co-contributions and low income superannuation contributions received during a reporting period separately or as a single aggregated amount: Treasury Laws Amendment (2015 Measures No 1) Regulation 2015 (SLI 2015 No 39; registered 30 March 2015).
Updating the cents per kilometre method for calculating car expenses
The amending Regulation amends the Income Tax Regulations 1997 to specify updated rates for the 2014-2015 year to take account of increases in the consumer price index. The cents per kilometre rates for the 2014-2015 year are:
- small car: 65.00
- medium car: 76.00
- large car: 77.00.
These rates are the same as for 2013-2014.
Sunsetting of the Income Tax Regulations 1936
As part of Treasury’s initial review of the Income Tax Regulations 1936, a number of provisions in the principal law and regulations were identified as duplicative, inoperative or spent. A number of provisions contained in the regulations were also identified as being more appropriately incorporated into the primary law.
The amending Regulation consolidates duplicated regulations, repeals spent or redundant regulations and updates and modernises older regulations.
Low Income Superannuation Contribution reporting
The amending Regulation amends the Corporations Regulations 2001 to give superannuation funds the option of either separately reporting the amount of superannuation co-contributions and the amount of low income superannuation contributions (LISC) received during a reporting period or alternatively reporting these two amounts as an aggregate amount on periodic statement to members. This provides superannuation funds with continued flexibility in reporting these amounts to members and will remove the need for information technology changes to be made to reporting systems and avoid funds incurring significant compliance costs.