The current threshold for which a valid GST tax invoice must be held in order to claim input tax credits is $82.50 GST inclusive. This threshold imposes large administrative costs on businesses. Propose the threshold be increased to $150 GST inclusive.
The current time and value limits for correcting prior period GST debit errors range from 12 - 18 months and $10K to $450K depending on GST turnover. Where these limits are exceeded however, taxpayers are required to correct every impacted Business Activity Statement (BAS) lodged in the previous four years. This increases compliance costs for both taxpayers and the ATO. Propose therefore that both the time and value limits... more »
There is currently little guidance provided to the mining industry on Research and Development (R&D) and its interactions with the tax system. Propose that the ATO provide consistent levels of R&D guidance/advice across all industries in order to provide clarity and certainty.
Currently, a Self-Managed Superannuation Fund (SMSF) can remain an Australian superannuation fund even where its central management and control is temporarily outside of Australia for up to two years. However, this timeframe is too short in the context of modern work arrangements. Propose the exemption be increased to allow a fund's central management and control to be temporarily outside Australia for up to four years.... more »
The ATO should consider reviewing the usefulness and relevancy of its advice and guidance in respect of schemes to provide certain benefits (section 45B of the ITAA 1936) and update it as required.
Need further guidance from the ATO with respect to Employee Share Schemes (ESS) and whether interests in certain common kinds of foreign vehicles (such as a limited liability company) qualify as 'shares' or 'ordinary shares' under the ESS rules, in particular, subsections 83A-10(1) and 83A-45(2) of the ITAA 1997.
For large withholders, the total salary and wages amount recorded at label W1 on a Business Activity Statement (BAS) is not used for the purposes of any calculations within the BAS. However, conducting the calculations required in order to complete this label can be administratively burdensome. Propose that the requirement to complete this label be removed for large withholders.
Currently excise applies to crude oil and condensate produced from onshore petroleum fields. Production below a threshold of 30 million barrels per field is excise-free, but producers must still register as manufacturers of excisable goods. This means that onshore producers must meet the ongoing verification, administrative and compliance requirements imposed by the excise regime. Decrease the unnecessary compliance burden... more »
Section 105A of the Customs Act 1901 applies a maturation requirement for imports of brandy, whisky and rum that mirrors section 77F1 of the Excise Act 1901. This requirement imposes an unnecessary administrative burden on both the importers of these spirits and the Department of Immigration and Border Protection and effectively works against the movement of goods between countries. Furthermore, the broad definition of... more »
The inclusion of deferred tax liabilities in the tax cost setting process adds complexity to the consolidations regime and results in a mismatch of tax and commercial outcomes. Propose deferred tax liabilities be excluded from the entry and exit tax cost setting calculations.
In order for income of a Superannuation fund to be treated as exempt current pension income (ECPI) and therefore be exempt from income tax, section 295-385 of the Income Tax Assessment Act 1997 requires the trustee of the fund to obtain an actuary's certificate. Obtaining such a certificate is burdensome both from a timing and compliance cost perspective. Propose a statutory formula be developed in place of this requirement.... more »
The rules governing the Superannuation Guarantee Charge (SGC) regime are complex and onerous to the extent that many SME's ignore SGC for late super remissions. These rules should be substantially simplified in order to provide clarity and improved compliance.
The Interests on Overpayments (IOP) regime needs to be overhauled. The current system is difficult to understand and administratively complex.
There is considerably uncertainty in the automotive industry as to which dealer incentives are subject to GST and which are not. Amend GST law to provide clarity by ensuring all dealer incentives are subject to GST.
Each State has its own system with inconsistent record keeping requirements in relation to Royalties. To ease compliance burdens and reduce uncertainty, consider developing a 'pro-forma' system that each of the States could adopt.