AAT
2015-16 Budget Measures
Current status of Budget Announcements
Current update: 14 July 2015
Contents
Click to go directly to an item
Small business company tax cut .................................................................................................................................................................................. 3
Unincorporated small businesses tax cut.................................................................................................................................................................... 4
$20,000 immediate deduction .................................................................................................................................................................................... 5
Fringe Benefits Tax exemption on electronic devices ................................................................................................................................................. 9
Capital Gains Tax rollover exemption for changes to company structures .............................................................................................................. 11
Start-up deductions ................................................................................................................................................................................................... 13
Crowd-sourced funding ............................................................................................................................................................................................. 14
Accelerated depreciation for primary producers ...................................................................................................................................................... 14
Regulation reform foreshadowed ............................................................................................................................................................................. 18
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
GST compliance ......................................................................................................................................................................................................... 19
Streamlining business registration ............................................................................................................................................................................ 20
Tax red tape reduction .............................................................................................................................................................................................. 20
GST on downloads ..................................................................................................................................................................................................... 22
N-f-p Fringe benefits tax............................................................................................................................................................................................ 24
Dividend Imputation.................................................................................................................................................................................................. 27
Multinational tax shifting .......................................................................................................................................................................................... 28
Company tax disclosure............................................................................................................................................................................................. 30
Medicare levy low-income ........................................................................................................................................................................................ 33
Family Tax Benefit A and B ........................................................................................................................................................................................ 36
Release for terminal illness ....................................................................................................................................................................................... 38
Regulatory changes ................................................................................................................................................................................................... 39
Fly-in Fly-out employees ........................................................................................................................................................................................... 46
Working holiday visa ................................................................................................................................................................................................. 47
Work-related car expenses ....................................................................................................................................................................................... 49
ODA employees income tax exemption .................................................................................................................................................................... 50
Employee Share Ownership Schemes ....................................................................................................................................................................... 53
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
Applies to
Measure
Small Business
Small business company tax
cut
Budget Announcement
Initial detailed
announcement – May 2015
As promised, the Budget cuts The 2015-16 Budget
the nominal company tax
announced that the tax rate
rate for small businesses by
for small businesses with a
1.5 per cent to 28.5 per cent. turnover of less than $2
The company tax rate will
million will be cut to 28.5 per
fall to 28.5 per cent for
cent.
companies with aggregated
annual turnover less than $2 Companies with an
aggregated annual turnover
million. Companies with an
of $2 million or above will
aggregated annual turnover
continue to be subject to the
of $2 million or above will
continue to be subject to the current 30 per cent tax rate
on all their taxable income.
current 30 per cent rate on
all their taxable income.
The changes apply from the
2015–16 income year.
See:
ATO: Growing Jobs and Small
Business - tax cuts for small
business
Latest announcement and
current status
Tax Laws Amendment (Small
Business Measures No. 1) Bill
2015
Passed Both Houses:
15/06/15
Legislation passed.
Received royal assent 22
June 2015.
Act no.: 66
Year: 2015. Will apply for the
2015-16 income year.
Summary
Amends the: Income Tax
Rates Act 1986 to reduce the
company tax rate from 30
per cent to 28.5 per cent for
companies that are small
business entities with an
aggregated turnover of less
than $2 million; and Income
Tax Assessment Act 1936,
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
Income Tax Assessment Act
1997, Income Tax Rates Act
1986 and proposed Tax and
Superannuation Laws
Amendment (2015 Measures
No. 1) Act 2015 to make
consequential amendments.
See:
Tax Laws Amendment (Small
Business Measures No. 1) Bill
2015
Small Business
Unincorporated small
businesses tax cut
Unincorporated small
businesses will receive a 5
per cent tax discount of up
to $1,000 per annum (at a
cost to the Government of
$1.8 billion);
Unincorporated businesses
will receive a five per cent
tax discount on income from
unincorporated small
business activity. The
discount will be capped at
$1,000 per individual for
Unincorporated businesses
which are not eligible for the
small business tax cut to 28.5
per cent (above) will receive
a cut in personal income tax
capped at $1000, under
changes announced in the
2015-16 Budget.
Individual taxpayers with
business income from an
unincorporated business
that has an aggregated
annual turnover of less than
This measure is not yet law.
Legislation - Tax Laws
Amendment (Small Business
Measures No. 3) Bill 2015 was introduced to
Parliament on 24 June 2015
and has received second
reading in House of
Representatives.
See:
Tax Laws Amendment (Small
Business Measures No. 3) Bill
2015
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
each income year, and
delivered as a tax offset.
$2 million will be eligible for
a small business tax
discount. The discount will
be five percent of the
income tax payable on the
business income received
from an unincorporated
small business entity.
The discount will be capped
at $1,000 per individual for
each income year and
delivered as a tax offset. The
discount applies to sole
traders, trusts and
partnerships
The start date for this
measure is the 2015–16
income year.
See:
ATO: Growing Jobs and Small
Business - tax cuts for small
business (tax discount for
unincorporated business)
Small Business
$20,000 immediate
deduction
All small businesses will
receive an immediate
The 2015-16 Budget
contained a new concession
Tax Laws Amendment (Small
Business Measures no. 2) bill
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
deduction on any asset
costing less than $20,000
bought between Budget
night and 30 June 2017 (at a
cost of $1.75 billion).
The $20,000 limit on small
business tax deductible
items can be applied to as
many items as a business
likes, up to $20,000.
Any assets over $20,000
which are not eligible for the
concessional treatment can
be added together (‘pooled’)
and depreciated at the
existing rate of 15 per cent
in the first income year, and
30 per cent per year
thereafter. If the value of the
pool is below $20,000 before
the end of June 2017, it can
be immediately deducted.
Small business work-related
portable electronic devices
will be made FBT free.
allowing small businesses to
immediately deduct the cost
of assets costing less than
$20,000.
Since the Budget further
details of the concession
have been announced.
Announcements have not so
far indicated whether there
will be a cap on the total
value of assets each under
$20,000 which can be
deducted.
Under the measure:
Small businesses
with aggregated annual
turnover of less than $2
million can immediately
deduct each asset that costs
less than $20,000.
The measure will
apply to assets acquired
from 7.30 pm on 12 May
2015 until 30 June 2017.
This replaces the
previous instant asset write-
2015
Progress of legislation:
Finally passed both Houses
15/06/15
Received Royal Assent 22
June 2015.
Act no.: 67
Year: 2015
Summary
Amends the: Income Tax
Assessment Act 1997 and
Income Tax (Transitional
Provisions) Act 1997 to
temporarily increase the
threshold under which
certain depreciating assets,
costs incurred in relation to
depreciating assets and
general small business pools
can be written off; and
Income Tax Assessment Act
1997 to: make consequential
amendments; enable
primary producers to claim
an immediate deduction for
capital expenditure on water
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
off threshold of $1,000.
Small businesses can elect to
use the ‘simplified
depreciation rules’ which
allow small businesses to
immediately deduct the cost
of assets acquired for less
than $1,000. Assets that cost
over $1,000 can be added to
a small business pool with a
percentage of the pool
balance at year end being
deducted.
Assets excluded
from these deduction rules
include horticultural plants
and in-house software
allocated to a software
development pool. In most
cases specific depreciation
rules apply to these excluded
assets.
Assets that cost
$20,000 or more (which
can't be immediately
deducted) can be deducted
over time using a small
business pool. Under the
facilities and fencing assets;
and deduct capital
expenditure on fodder
storage assets over three
years.
See:
Tax Laws Amendment (Small
Business Measures No. 2) Bill
2015
Growing Jobs and Small
Business - expanding
accelerated depreciation for
small businesses
The Government has
proposed to expand
accelerated depreciation by
allowing small businesses
with an aggregated annual
turnover of less than $2
million to immediately
deduct each asset that cost
less than $20,000. The
measure will apply to assets
acquired from 7.30pm, 12
May 2015 until 30 June
2017.
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
pooling mechanism a
deduction for 15 per cent of
the cost is allowed in the
first income year with a 30
per cent deduction allowed
for each income year
thereafter.
The balance of a
small business pool can also
be immediately deducted if
the balance is less than
$20,000 at the end of an
income year that ends on or
after 12 May 2015 but on or
before 30 June 2017
(including existing pools).
The current 'lock
out' laws for the simplified
depreciation rules (these
prevent small businesses
from re-entering the
simplified depreciation
regime for five years if they
have opted out) are
suspended until 30 June
2017.
All assets (including
new and second hand) will
This will replace the previous
instant asset write-off
threshold of $1,000.
The balance of a small
business pool can also be
immediately deducted if the
balance is less than $20,000
at the end of an income year
that ends on or after 12 May
2015 and on or before 30
June 2017 (including existing
pools).
The Government will also
suspend the current 'lock
out' laws for the simplified
depreciation rules (these
prevent small businesses
from re-entering the
simplified depreciation
regime for five years if they
have opted out) until 30
June 2017.
Assets excluded from these
depreciation rules include
horticultural plants and inhouse software allocated to
a software development
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
be eligible, except for a small
number of exclusions which
receive different
depreciation treatment. (See
excluded assets above).
Both new and
old/second hand assets are
eligible for an immediate
deduction.
GST inclusive or
exclusive? If the entity is
registered for GST then the
GST exclusive amount is
taken to be the cost of the
asset. Where the entity is
not registered for GST then
the GST inclusive amount is
taken to be the cost of the
asset.
See:
ATO: Growing Jobs and Small
Business - expanding
accelerated depreciation for
small businesses
Small Business
Fringe Benefits Tax
exemption on electronic
The Government will allow a
fringe benefits tax (FBT)
Growing Jobs and Small
Business - changes to the
pool. In most cases specific
depreciation rules apply to
these excluded assets.
Assets that cost $20,000 or
more (which can't be
immediately deducted under
other provisions) can be
deducted over time using a
small business pool. Under
the pooling mechanism a
deduction for 15 per cent of
the cost is allowed in the
first income year with a 30
per cent deduction allowed
for each income year
thereafter.
See:
ATO: Growing Jobs and Small
Business - expanding
accelerated depreciation for
small businesses
The measure is contained in
Tax Laws Amendment (Small
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
devices
exemption from 1 April 2016
for small businesses with an
aggregated annual turnover
of less than $2 million that
provide employees with
more than one qualifying
work-related portable
electronic device, even
where the items have
substantially similar
functions.
fringe benefit tax system for
work-related electronic
devices
In the 2015–16 Budget, the
Government announced that
it will allow a fringe benefits
tax (FBT) exemption from 1
April 2016 for small
businesses with an
aggregated annual turnover
of less than $2 million that
provide employees with
more than one qualifying
work-related portable
electronic device, even
where the items have
substantially similar
functions.
Currently, an FBT exemption
can apply to more than one
portable electronic device
used primarily for work
purposes, but only where
the devices perform
substantially different
functions.
Business Measures No. 3) Bill
2015.
The Bill and Explanatory
memorandum were tabled
in Parliament on 24 June
2015.
If the measure becomes law
it will commence on 1 April
2016. Until then the current
FBT law will continue to
apply.
The current law will apply to
all portable electronic
devices provided to
employees for work-related
use before 1 April 2016.
Who is eligible?
Any business that meets the
definition of a small business
entity, that is one with an
aggregated turnover less
than $2 million, may be
eligible.
What is the current law?
Currently, an FBT exemption
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
Removing the restriction
that a tax exemption is only
provided for one workrelated portable electronic
device of each type will
remove confusion where
there is a function overlap
between different products
(such as between a tablet
and a laptop).
Legislation and supporting
material
Legislation is currently being
developed for this measure.
See:
ATO: Growing Jobs and Small
Business - changes to the
fringe benefit tax system for
work-related electronic
devices
Small Business
Capital Gains Tax rollover
exemption for changes to
company structures
There will be a new small
business Capital Gains Tax
rollover relief when changing
The Government will allow
small businesses with an
aggregated annual turnover
can apply to only one
portable electronic device
used primarily for work
purposes per FBT year where
the devices have
substantially identical
functions.
What will change?
An FBT exemption will be
allowed for small businesses
providing their employees
with multiple work-related
devices after 1 April 2016,
even where the items have
substantially similar
functions.
See:
ATO: Growing Jobs and Small
Business - changes to the
fringe benefit tax system for
work-related electronic
devices
Legislation for this measure
has not yet been drafted.
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
their legal structures.
of less than $2 million to
change their legal structure
without attracting a capital
gains tax (CGT) liability at
that point, under changes
announced in the 2015-16
Budget.
See:
ATO: Growing Jobs and Small
Business - capital gains tax
roll-over relief for changes to
entity structure
CGT roll-over relief is
currently available for
individuals who incorporate
but all other entity type
changes have the potential
to trigger a CGT liability.
This measure recognises that
new small businesses might
choose an initial legal
structure that they later find
does not suit them when the
business is more established,
the Government said.
The changes apply from the
2016–17 income year.
See:
ATO: Growing Jobs and Small
Business - capital gains tax
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roll-over relief for changes to
entity structure
Small Business
Start-up deductions
Start-ups will be allowed to
immediately deduct
professional expenses
incurred when they start a
business.
See:
Budget 2015: Supporting
small business growth
The 2015–16 Budget
announced the Government
will allow a start-up
company, trust or
partnership to immediately
deduct a range of
professional expenses
associated with starting a
new business, such as
professional, legal and
accounting advice.
Previously some professional
costs associated with a new
business start-up were
apportioned over a five year
period.
This change applies from the
2015–16 income year.
The measure is contained in
Tax Laws Amendment (Small
Business Measures No. 3) Bill
2015.
The Bill and Explanatory
memorandum were tabled
in Parliament on 24 June
2015.
If the measure becomes law
it apply from the 2015-16
income year.
See:
ATO: Growing Jobs and
Small Business - allow
immediate deductibility for
professional expenses
See:
ATO: Growing Jobs and
Small Business - allow
immediate deductibility for
professional expenses
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
Small Business
Crowd-sourced funding
Obstacles to crowd-sourced
equity funding will be
reduced to help promote
small businesses access to
finance.
The Government will provide
$7.8 million over four years
from 2015-16 to the
Australian Securities and
Investments Commission to
implement and monitor a
regulatory framework to
facilitate the use of crowdsource equity funding (CSEF),
including simplified
reporting and disclosure
requirements.
Ministerial media Release:
Government step closer to
crowd source equity funding
model (February 2015)
Treasury Consultation:
Crowd-sourced equity
funding (December 2014)
See:
Budget 2015: Supporting
small business growth
Rural
Accelerated depreciation for
primary producers
The Government will allow
all primary producers to
immediately deduct capital
expenditure on fencing and
The operation of tax
depreciation measures for
farmers, announced in the
federal Budget has been
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
water facilities such as dams,
tanks, bores, irrigation
channels, pumps, water
towers and windmills.
The Government will also
allow primary producers to
depreciate over three years
all capital expenditure on
fodder storage assets such as
silos and tanks used to store
grain and other animal feed.
These changes will be for
income years commencing
on or after 1 July 2016.
Currently, the effective life
for fences is up to 30 years,
water facilities is three years
and fodder storage assets is
up to 50 years.
The measure is estimated to
have a cost to revenue of
$70.0 million over the
forward estimates.
brought forward. Instead of
starting on 1 July 2016 as
announced in the Budget the
measures will now apply to
the current financial year,
from the day the Budget was
delivered, 12 May 2015.
Agriculture Minister Barnaby
Joyce said farmers can now
claim a tax deduction on all
capital expenditure on water
facilities, fodder storage
assets and fencing incurred
since the Budget was handed
down on May 12.
“Farmers can fully deduct
the cost of water facilities
and fencing in the year they
are purchased and deduct
the cost of fodder storage
assets over three years,” Mr
Joyce said.
“Australian small businesses
got a boost on Budget night
being able to immediately
claim accelerated
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
depreciation on business
assets costing up to $20,000.
Farms with turnover of less
than $2 million qualify as a
small business and are
therefore also eligible to
immediately write-off all
asset purchases up to
$20,000.
“Following broad
consultation, stakeholders
told us they wanted to get
on with building fences,
dams and fodder storage as
soon as possible.
“Our decision to bring
forward the start date of
accelerated depreciation for
all farmers, regardless of the
size of their farm, allows
them to prepare for drought
and invest in the productivity
of their farms immediately.
See:
Ministerial Media Release:
Depreciation for farmers
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brought forward
The law commenced 7.30
pm AEST 12 May 2015 and
will cease on 30 June 2017.
See:
ATO: Growing Jobs and Small
Business - expanding
accelerated depreciation for
small businesses
Tax Laws Amendment (Small
Business Measures no. 2) bill
2015
Progress of legislation:
Finally passed both Houses
15/06/15
Received Royal Assent 22
June 2015
Act no.: 67
Year: 2015
Summary
Enable primary producers to
claim an immediate
deduction for capital
expenditure on water
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AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
facilities and fencing assets;
and deduct capital
expenditure on fodder
storage assets over three
years.
See:
Tax Laws Amendment (Small
Business Measures No. 2) Bill
2015
See:
ATO: Growing Jobs and Small
Business - expanding
accelerated depreciation for
small businesses
Small Business
Regulation reform
foreshadowed
The Government will release
a consultation paper later in
2015 on potential changes to
the Corporations Act to
reduce any unnecessarily
burdensome or restrictive
regulatory requirements for
small businesses.
See:
Budget 2015: Supporting
small business growth
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Business
GST compliance
The Government will provide
$265.5 million to the
Australian Taxation Office
over three years from 201617 to continue a range of
activities to promote GST
compliance.
The measure is estimated to
increase revenue by $2.5
billion and expenses by $2.1
billion with a net
improvement to the Budget
of $445.0 million. The
revenue includes an
additional GST component of
$1.8 billion which will be
paid to the States and
Territories. Commonwealth
tax receipts also increase as
GST compliance activity
leads to the increased
collection of unpaid debts
from income tax.
See:
Budget 2015: Making the tax
system fairer
The 2015-16 Budget
announced the existing GST
compliance program will be
extended for three years to
support the Australian Tax
Office (ATO) in identifying
fraudulent GST refunds,
under reporting of GST
liabilities, failure to lodge
GST returns and outstanding
GST debts.
The Government said the
extension will help deter the
black economy. The measure
is expected to increase GST
collections by $1.8 billion, to
be paid to the states and
territories and other revenue
by including increased
income tax collections $700
million.
The ATO will receive an
additional $265.5 million to
extend the program.
See:
Budget Paper No 2 - Budget
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Measures - Revenue: GST —
compliance programme —
three year extension
Business
Business
Streamlining business
registration
Tax red tape reduction
The Government will provide
$32.4 million over five years
from 2014-15 (including
capital of $13.5 million over
three years from 2014-15)
for the Australian Taxation
Office, Australian Securities
and Investments
Commission and the
Department of Industry and
Science, to develop a single
online portal for business
and company registration;
publish new computer code
to enable developers to
build new registration
software; and reduce the
number of business
identifiers.
See:
Budget Paper No 2: Budget
Measures: Part 2 Expenses Treasury
The Budget says the
Reducing red tape - reforms
See:
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Government will provide
$130.9 million over four
years (including capital of
$35.6 million) “to deliver an
improved experience for
clients in their dealings with
the Australian Taxation
Office (ATO).”
Red tape will be reduced and
future administrative savings
delivered through
investment in:
- a digital by default
service for provision
of information and
making payments,
- improvements to
data and analytics
infrastructure; and
enhancing
streamlined income
tax returns through
the myTax system
for taxpayers with
more complex tax
affairs.
See:
to the Australian Taxation
Office
In the 2015–16 Budget, the
Government announced it
will provide funding over
four years to deliver an
improved experience for
clients in their dealings with
the Australian Taxation
Office (ATO).
Red tape will be reduced and
future administrative savings
delivered through
investment in three
foundational initiatives: a
digital by default service for
provision of information and
making payments,
improvements to data and
analytics infrastructure and
enhancing streamlined
income tax returns through
the myTax system for
taxpayers with more
complex tax affairs.
The package of service
improvements supports the
Government's commitment
ATO: Reducing red tape reforms to the Australian
Taxation Office
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2015-16 Budget Paper No 2:
Expense Measures page 176
Business
GST on downloads
GST will be extended to
downloads from overseas
suppliers of digital products
and services imported by
consumers from 1 July2017.
The measure is estimated to
increase GST revenue of
$350.0 million over the
forward estimates period.
GST is collected by the
Commonwealth on behalf of
the states and territories and
to reduce red tape and
forms part of the
Government's digital
transformation agenda.
This measure delivers on the
Government's election
commitment.
Legislation and supporting
material
Legislation is currently being
developed for this measure.
See:
ATO: Reducing red tape reforms to the Australian
Taxation Office
The 2015-16 Budget
anounced that GST will be
extended to downloads from
overseas suppliers of digital
products and services
imported by consumers from
1 July 2017.
The measure is estimated to
increase GST revenue of
$350.0 million over the
forward estimates period.
GST is collected by the
The Government has
released draft legislation for
consultation amendments to
the goods and services tax
(GST) to ensure that digital
products and services
provided to Australian
consumers receive
equivalent GST treatment
whether they are provided
by Australian or foreign
entities.
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the change will require the
unanimous agreement of the
States and Territories prior
to the enactment of
legislation.
See:
Treasurer's Media Release:
Strengthening our taxation
system
Budget Paper No 2: Budget
Measurers - Revenue
Measures page 20
Commonwealth on behalf of
the states and territories and
the change will require the
unanimous agreement of the
States and Territories before
the enactment of legislation.
An exposure draft of the
legislation and explanatory
memorandum of the
proposed law were released
for consultation on 12 May
2015. Closing date for
submissions is 7 July 2015.
Submissions on the digital
products measure close on 7
July 2015.
Submissions on the draft
legislation closed 7 July
2015.
See:
Treasury Consultation: Tax
integrity: Extending GST to
digital products and other
services imported by
consumers
The proposed amendments:
make the supply of
anything other than goods or
real property to an entity
that is not registered or
required to be registered for
GST potentially subject to
GST if that entity is an
Australian resident;
provide that the GST
will be payable on certain
electronic supplies to which
the above applies, by the
operator of the service
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through which the supply is
made to the consumer
rather than the actual
supplier; and
allow for the making
of regulations to provide
simplified rules for
registration, tax periods and
GST returns for entities to
which the proposed
amendments apply.
Not for profit sector
N-f-p Fringe benefits tax
See:
Treasury Consultations: Tax
Integrity: Extending GST to
digital products and other
services imported by
consumers
ATO: GST - applying to digital
products and services
imported by consumers
The Budget confirms the pre- The 2015-16 Budget
Budget announcement by
confirmed the pre-Budget
Assistant Treasurer Josh
announcement by Assistant
Frydenberg that the present Treasurer Josh Frydenberg
uncapped FBT concession for that the present uncapped
food and drink,
Fringe Benefits Tax (FBT)
entertainment and travel,
concession for food, drink
Federal Treasury has
released a consultation
paper on limiting fringe
benefits tax concessions on
salary packaged
entertainment benefits in
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will be capped at $5000 a
year. The existing capped
$30,000 FBT concession
($17,000 for public hospital
employees) which can be
used for school fees,
mortgages and rent, will
remain unchanged. The
decision goes part-way to
accepting the Productivity
Commission’s 2010
recommendation that the
uncapped FBT concession be
absorbed into the capped
concession.


See:
Budget 2015 - Fairness in Tax
and Benefits
Budget Paper No 2 Revenue Measures page 22
and entertainment for not
for profit employees, will be
capped at $5000 a year.
The existing capped $30,000
FBT concession ($17,000 for
public hospital employees)
which can be used for school
fees, mortgages and rent,
will remain unchanged.
The decision goes part-way
to accepting the Productivity
Commission’s 2010
recommendation that the
uncapped FBT concession be
absorbed into the capped
concession.
Under the changes
employees will be allowed a
separate single grossed-up
cap of $5,000 for salary
sacrificed meal,
entertainment and
entertainment facility leasing
expenses (meal
entertainment benefits).
Meal entertainment benefits
exceeding the separate
AAT 2015-16 Budget Measures - Current status of Budget Announcements - Current update: 14 July 2015
the Not for Profit sector.
The draft legislation and
explanatory material put in
place the 2015-16 Budget
measures that will apply
from 1 April 2016.
“The measure will introduce
a separate single grossed-up
cap of $5,000 for salary
packaged meal
entertainment and
entertainment facility leasing
expenses (entertainment
benefits) for employees of
public benevolent
institutions, health
promotion charities and
employees of public and Not
for Profit hospitals and
public ambulance services,”
Treasury said.
“Currently these employees
can salary package
entertainment benefits with
no FBT payable by the
employer and without the
benefits being reported. All
25
grossed up cap of $5,000 can
also be counted in
calculating whether an
employee exceeds their
existing FBT exemption or
rebate cap. All use of meal
entertainment benefits will
become reportable.
Before the Budget
employees of public
benevolent institutions and
health promotion charities
had a standard $30,000 FBT
exemption cap (this will be
$31,177 for the first year of
the measure, due to the
Temporary Budget Repair
Levy) and employees of
public and not for profit
hospitals and public
ambulance services had a
standard $17,000 FBT
exemption cap ($17,667 for
the first year).
salary packaged
entertainment benefits will
also become reportable
fringe benefits.”
The consultation period ends
on 21 August 2015.
See:
Treasury consultation:
Limiting fringe benefits tax
concessions on salary
packaged entertainment
benefits
In addition to these FBT
exemptions, these
employees can salary
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sacrifice meal entertainment
benefits with no FBT payable
by the employer and without
it being reported. Employees
of rebatable not for profit
organisations can also salary
sacrifice meal entertainment
benefits, but the employers
only receive a partial FBT
rebate, up to a standard
$30,000 cap ($31,177 for the
first year).
The measure will apply from
1 April 2016 to coincide with
the start of the FBT year.
See:
ATO: FBT - Introducing a cap
for salary sacrificed meal
entertainment and
entertainment facility leasing
expenses
Business
Dividend Imputation
Franking credits (which had
been speculated before the
Budget as a possible target
for cuts) will remain
unchanged at 30 per cent for
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all companies, maintaining
the existing arrangements
for investors.
Business
Multinational tax shifting
The Budget contains a new
general anti- tax avoidance
measure aimed at multinationals using overseas lowtax havens to avoid paying
tax on their Australian
operations.
However – as widely
foreshadowed before the
Budget – the measure
contains no revenue
forecasts. It appears to be
vague and is likely to be seen
as a ‘holding measure’ to
show the Government is
doing something on this
controversial matter while
waiting for the OECD and
G20 to agree on coordinated
policies against overseas tax
shifting.
The measure will apply to
companies with global
revenue of $1 billion or more
The Government has
released draft legislation for
consultation on changes to
the tax law to stop
multinationals using artificial
or contrived arrangements
to avoid a taxable presence
in Australia.
Submissions on the
multinational tax avoidance
measure closed on 9 June
2015.
See:
Treasury Consultation: Tax
Integrity: Multinational
Anti-avoidance Law
ATO: Combatting
multinational tax avoidance a targeted anti-avoidance
law
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The Budget Papers say the
Government “will introduce
a new targeted antiavoidance law in Part IVA of
the Income Tax Assessment
Act 1936 aimed at
multinationals that
artificially avoid having a
taxable presence in
Australia. The new law will
apply to tax benefits
obtained from 1 January
2016 (under both new and
existing schemes). This
measure is estimated to
have an unquantifiable gain
to revenue over the forward
estimates period.”
The new law will target
approximately 30 companies
where:
the activities of an
Australian company or other
entity are integral to an
Australian customer’s
decision to enter into a
contract;
the contract is
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formally entered into with a
foreign related party to that
entity; and
the profit from the
Australian sales is booked
overseas and subject to no
or low global tax.
“Where such arrangements
are entered into for a
principal purpose of avoiding
tax, this measure will ensure
that the profits from
Australian sales are taxed in
Australia,” according to the
Budget.
Business
Company tax disclosure
See:
Budget 2015: Fairness in tax
and benefits
Budget Paper No 2: Budget
Measures - Revenue
Measures
The Government will
implement the Organisation
for Economic Co-operation
and Development’s new
transfer pricing
Combatting multinational
tax avoidance - new transfer
pricing documentation
standards
In the 2015–16 Budget, the
New transfer pricing
documentation standards
In the 2015–16 Budget, the
government announced it
will implement the
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documentation standards
from 1 January 2016.
The Government will provide
the Australian Taxation
Office (ATO) with $11.3
million to implement the
new standards. It will have
an “unquantifiable gain to
revenue over the forward
estimates.”
See:
Budget Paper No 2 - Budget
Measures: Revenue
Measures
Government announced it
will implement the
Organisation for Economic
Co-operation and
Development's (OECD)
report released in
September 2014 on Action
Item 13 of the G20/OECD
Base Erosion and Profit
Shifting Action Plan
recommends standard
transfer pricing
documentation for
multinationals including a
master file, local file and
Country-by-country (CbC)
Report.
Large multinationals with
global revenue of more than
$1 billion will be required to
meet these new reporting
requirements. They will be
required to be lodge within
12 months of their income
tax year-end.
The reporting requirements
come into effect for
taxpayers for their first
Organisation for Economic
Cooperation and
Development's (OECD's) new
transfer pricing
documentation
standards (commonly
referred to as Country-byCountry (CbC) reporting).
This will include a master
file, local file and Countryby-Country (CbC) report. The
standard was recommended
under Action Item 13 of the
G20/OECD Base Erosion and
Profit Shifting Action Plan.
These new reporting
requirements apply to
companies with global
revenue of $1 billion or
more. They will be required
to lodge the documents with
the ATO within 12 months of
their income tax year-end.
The reporting requirements
will come into effect for the
first income tax year
beginning on or after 1
January 2016.
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income tax year beginning
on or after 1 January 2016.
The CbC report contains
specific information which
relates to the multinational’s
global allocation of income,
tax paid and certain other
indicators relevant to the
geographic location of the
economic activity (e.g. no. of
employees) within the
group.
The master file contains
standardised information
about the multinational
group. The local file provides
information relevant for
transfer pricing compliance,
for material transactions for
the subsidiary/taxpayer and
also provides detailed
information about the local
taxpayer's intercompany
transactions.
Information provided to the
ATO and exchanged with
treaty partners will be
subject to the same privacy
The CbC report will contain
specific information on the
global activities of the
multinational, including the
location of its income and
taxes paid. The master file
will provide an overview of
the multinational's global
business, its organisational
structure and its transfer
pricing policies. The local file
will contain detailed
information about the local
taxpayer's intercompany
transactions.
See:
ATO: New transfer pricing
documentation standards
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laws that protect taxpayer
data. This information will
improve the data and
intelligence collected by the
ATO in addressing profit
shifting.
See:
ATO: Combatting
multinational tax avoidance new transfer pricing
documentation standards
Personal tax
Medicare levy low-income
thresholds for families
The Government will
increase the Medicare levy
low-income thresholds for
singles, families and single
seniors and pensioners from
the 2014-15 income year, to
take account of movements
in the Consumer Price Index
so that low-income
taxpayers generally continue
to be exempted from paying
the Medicare levy.
The threshold for singles will
be increased to $20,896. For
couples with no children, the
Medicare levy
ATO: Medicare levy
Last modified: 05 Jun 2015
Medicare levy reduction family income
ATO: Medicare levy
reduction - family income
Last modified: 28 May 2015
If your taxable income is
more than $26,120 ($41,305
for seniors and pensioners),
you may still qualify for a
Medicare levy reduction
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threshold will be increased
to $35,261 and the
additional amount of
threshold for each
dependent child or student
will be increased to $3,238.
For single seniors and
pensioners, the threshold
will be increased to $33,044.
This measure is estimated to
have a cost to revenue of
$231.0 million over the
forward estimates period.
See:
Budget Paper No 2 - Budget
Measures: Revenue
Measures
based on family taxable
income if:
You had a spouse (married
or de facto)
You had a spouse that died
during the year, and you did
not have another spouse
before the end of the year
You are entitled to an Invalid
and Invalid Carer tax offset
in respect of your child
You were a sole parent at
any time during the income
year and had sole care of
one or more dependent
children
Sole care means that you
alone had full responsibility
for the upbringing, welfare
and maintenance of a child
or student.
You are not considered to
have sole care if you are
living with a spouse (married
or de facto) unless special
circumstances exist, for
example if a spouse is
medically incapable of
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assisting you with the care.
How do I calculate my family
taxable income?
Family taxable income is the
combined taxable income of
you and your spouse
(including a spouse who died
during the year) or your
taxable income if you were a
sole parent.
If you received a super lump
sum payment when you
were between 55 to 59 years
old, the amount of the taxed
element of this (not
including the amount of any
death benefit) that does not
exceed your low-rate cap for
the year is not included in
your taxable income for
Medicare levy purposes.
Your low-rate cap is the cap
amount that applies to that
year less any superannuation
lump sums you received in
previous years.
What is my family taxable
income limit?
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Your Medicare levy is
reduced if your family
taxable income is equal to or
less than $44,076 ($57,500 if
you are eligible for the
Seniors and Pensioners Tax
Offset) plus $3,238 for each
dependent child you have.
See also:
Medicare levy calculator
See:
ATO: Medicare levy
Personal tax
Family Tax Benefit A and B
The Government will achieve
savings of $177.3 million
over four years from the
cessation of the additional
Family Tax Benefit (FTB) Part
A Large Family Supplement
from 1 July 2016.
Families will continue to
receive a per child rate of
FTB Part A for each eligible
child in their family.
The Government also aims
to save $42.1 million over
five years by reducing the
Budget 2015-16: Cessation
of the Large Family
Supplement of Family Tax
Benefit Part A
Information update: this
Budget measure is subject to
the passage of legislation.
Description of the measure
The Large Family
Supplement is currently paid
as part of Family Tax Benefit
Part A to families with 3 or
more children.
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amount of time Family Tax
Benefit (FTB) Part A will be
paid to recipients who are
outside Australia.
From 1 January 2016,
families will only be able to
receive FTB Part A for six
weeks in a 12 month period
while they are overseas. At
present FTB Part A recipients
who are overseas are able to
receive their usual rate of
payment for six weeks and
then the base rate for a
further 50 weeks.
Portability extension and
exception provisions which
allow longer portability
under special circumstances
will continue to apply.
From 1 July 2015 until 30
June 2016, the Large Family
Supplement will only be paid
to families with 4 or more
children.
This will change from 1 July
2016 when the Large Family
Supplement will no longer be
paid.
Questions and answers
Who will be affected by this
measure
This measure will affect new
and existing Family Tax
Benefit Part A customers.
Am I eligible for this measure
This change applies
automatically to new and
existing Family Tax Benefit
Part A customers with 4 or
more children. From 1 July
2016 these customers will no
longer receive the Large
Family Supplement.
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Superannuation
Release for terminal illness
The date this measure will
start and finish
This measure will start on 1
July 2016 and is ongoing.
See:
Department of Human
Services: Budget 2015-16:
Cessation of the Large Family
Supplement of Family Tax
Benefit Part A
The Government has eased
Release of superannuation
This measure is
slightly the conditions for the for terminal medical
implemented by the
release of superannuation
condition - relaxing criteria
Tax and Superannuation
benefits in the event of a
In the 2015-16 Budget, the
Laws Amendment (Terminal
terminal illness.
Government announced that Medical Conditions)
From 1 July 2015, the
from 1 July 2015, it will
Regulation 2015.
Government will extend
amend the provision for
The regulation received
access to superannuation for accessing superannuation for Royal Assent on 25 June
people with a terminal
people with a terminal
2015.
medical condition. Currently, illness.
patients must have two
Under the current provision
See:
medical practitioners
for early access to
ATO: Release of
(including a specialist) certify superannuation, a person
superannuation for terminal
that they are likely to die
with a terminal illness is
medical condition - relaxing
within one year to gain
required to obtain a
criteria
unrestricted tax free access
certification from medical
to their superannuation
specialists they have less
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balance. The Government
will change this period to
two years. This will give
terminally ill patients earlier
access to their
superannuation.
The Government will raise
additional revenue of $46.9
million over four years from
2015-16 by increasing the
supervisory levies paid by
financial institutions. This
will fully recover the cost of
superannuation activities
undertaken by the Australian
Taxation Office and the
Department of Human
Services, consistent with the
Government’s cost recovery
guidelines.
Superannuation
Regulatory changes
The Government will
implement a package of
measures that will reduce
than 12 months to live.
The Government will amend
the relevant regulations to
change the life expectancy
period to 24 months. It is
proposed this change will
take effect from 1 July 2015.
Legislation and supporting
material
Legislation is currently being
developed for this measure.
Find out more
Media release - 7 May 2015 Early access to
superannuation for people
with terminal illness
2015-16 Budget Paper No
2 Revenue Measures
See:
ATO: Release of
superannuation for terminal
medical condition - relaxing
criteria
Budget Paper No 2 - Budget
Measures - Expense
Measures: Cutting Red Tape
Cutting Red Tape — lost and
unclaimed superannuation
Legislation is currently being
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red tape for superannuation — lost and unclaimed
funds and individuals by
superannuation
removing redundant
reporting obligations and by
streamlining lost and
unclaimed superannuation
administrative
arrangements. The changes
will make it easier for
individuals to be reunited
with their lost and unclaimed
superannuation. The
measures will have effect
from 1 July 2016. The cost of
implementing the measures
will be met from within the
existing resources of the
Australian Taxation Office
developed for these
measures.
In the 2015-16 Federal
Budget the Government
announced that it will
implement a package of
measures that will reduce
red tape for superannuation
funds and individuals by
removing redundant
reporting obligations and by
streamlining lost and
unclaimed superannuation
administrative
arrangements. The changes
will make it easier for
individuals to be reunited
with their lost and unclaimed
superannuation.
The Treasury will work with
the ATO and superannuation
industry stakeholders to
implement these changes.
Most elements are expected
to start on 1 July 2016.
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Removal of the Lost Member
Statement (LMS):
Funds are currently required
to lodge a separate biannual
LMS to the ATO. This change
proposes to repeal this
separate reporting obligation
as it overlaps with other
existing fund reporting
obligations to the ATO.
Updating the ‘uncontactable’ definition for
lost member accounts
The current definition of lost
‘un-contactable’ accounts is
based upon returned
unclaimed mail. This
currently includes two
written (including email)
communications.
This change proposes that
modern communications
methods will be recognised
in determining if a member
is un-contactable, and is
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intended to better define
the true stock of uncontactable members.
Removal of ‘employersponsored’ element of the
"Lost -inactive" definition
The existing lost inactive
account test currently
requires the member to
have joined their fund under
a standard ‘employersponsored’ arrangement. It
is difficult for funds to
identify accounts which fall
into this category.
This change proposes to
remove the employersponsored element of the
lost member definition, to
better enable funds to
correctly identify and report
lost inactive accounts.
Allow proactive Eligible
Rollover Fund (ERF)
consolidation
ERF are currently unable to
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transfer amounts to other
funds without the express
consent of the member. This
has limited their ability to
operate as short term
repositories for members
who are out of the
workforce.
This change proposes to
enable the licensee of an ERF
to reunite ERF balances with
an active account in another
registrable superannuation
entity without the express
consent of the member.
Enabling payment Unclaimed
Superannuation Monies
(USM) claims to transTasman KiwiSaver Accounts
While retirement savings can
be moved between an
Australian APRA regulated
superannuation fund and a
New Zealand (NZ) KiwiSaver
account, individuals with
USM accounts held by the
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Tax Office cannot have these
monies directly rolled into
their KiwiSaver account.
This measure proposes to
allow individuals to rollover
their USM balances directly
to KiwiSaver accounts.
Direct payment of
Unclaimed Superannuation
Monies (USM) on terminal
medical grounds
A person suffering a terminal
medical condition can access
their superannuation in a
fund tax free, prior to
preservation age. However,
they cannot currently access
USM amounts greater than
$200 that are held by the Tax
Office.
This measure proposes to
allow payments of USM to
be made directly to
individuals who qualify on
terminal medical condition
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grounds.
Cutting Red Tape – lost and
unclaimed superannuation
Small lost member account
threshold increases
In addition to the
abovementioned Cutting
Red Tape — lost and
unclaimed superannuation
proposals, the 2013-14
Budget also announced the
Government's intention to
increase the balance
threshold for transferral of
Unclaimed Super Monies to
the Tax Office. This proposes
to incrementally increase the
current threshold of $2000,
to a threshold of $4000 from
31 December 2015, and to a
threshold of $6000 from 31
December 2016.
This change is intended to
preserve the value of lost
member accounts in the
superannuation system, and
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ensure more of these
accounts are reunited with
their owners.
See:
ATO: Cutting Red Tape —
lost and unclaimed
superannuation
Business and employees
Fly-in Fly-out employees
In changes to personal
income tax, the Government
will exclude ‘fly-in fly-out’
and ‘drive-in drive-out’
(FIFO) workers from the
Zone Tax Offset (ZTO) where
their normal residence is not
within a ‘zone’. This measure
will take effect from 1 July
2015 and is estimated to
have a gain to revenue of
$325.0 million over the
forward estimates period.
The ZTO is a concessional tax
offset available to individuals
in recognition of the
isolation, uncongenial
Zone Tax Offset - exclude
'fly-in-fly-out'
Legislation for this measure
has not yet been drafted.
In the 2015–16 Federal
Budget, the government
announced that it will
exclude 'fly-in fly-out' and
'drive-in drive-out' (FIFO)
workers from the Zone Tax
Offset where their normal
residence is not within a
'zone'.
Currently, to be eligible for
the Zone Tax Offset, a
taxpayer must reside or
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climate and high cost of
living associated with living
in identified locations.
Eligibility is based on defined
geographic zones.
This measure will better
target the ZTO to taxpayers
who have taken up genuine
residence within the zones.
This will align ZTO with the
original intent of the policy,
which was to support
genuine residents of zones.
For those FIFO workers
whose normal residence is in
one zone, but who work in a
different zone, they will
retain the ZTO entitlement
associated with their normal
place of residence.
Business and employees
Working holiday visa
From 1 July 2016, the
Government will also change
the tax residency rules to
treat most people who are
temporarily in Australia for a
work in a specified remote
area for more than 183 days
in an income year. The offset
recognises the isolation,
uncongenial climate and
high cost of living associated
with living in identified
locations.
This measure will better
target the offset to taxpayers
who have taken up genuine
residence within the zones.
It will take effect from 1 July
2015.
See:
ATO: Zone Tax Offset exclude 'fly-in-fly-out'
Budget 2015-16 Budget
paper No. 2 - Revenue
Measures
Tax residency rules to
change for temporary
working holiday makers.
Legislation for this measure
has not yet been drafted.
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working holiday as nonresidents for tax purposes,
regardless of how long they
are here. This means they
will be taxed at 32.5 per cent
from their first dollar of
income.
This measure is estimated to
have a gain to revenue of
$540.0 million over the
forward estimates period.
The Government will provide
$5.1 million to the Australian
Taxation Office to implement
this measure.
See:
Budget 2015 - Personal
income tax : Better targeting
the Zone Tax Offset
In the 2015-16 Federal
Budget, the government
announced that it will
change the tax residency
rules for most people who
are temporarily in Australia
for a working holiday.
These people will be treated
as non-residents for tax
purposes, regardless of how
long they are here. They will
not be able to access the taxfree threshold and will be
taxed at the second marginal
rate (currently 32.5%) from
their first dollar of income up
to $80,000.
The change will take effect
from 1 July 2016.
See:
ATO: Tax residency rules to
change for temporary
working holiday makers.
2015-16 Budget Paper No 2 48
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Revenue Measures page 16
Business and employees
Work-related car expenses
The Government will
modernise the methods of
calculating work-related car
expense deductions from the
2015-16 income year. It will
remove the ‘12 per cent of
original value method’ and
the ‘one-third of actual
expenses method’, which are
used by less than two per
cent of those who claim
work-related car expenses.
See:
Budget 2015-16 Budget
Paper No. 2: Revenue
Measures
Simplify the car expense
substantiation methods
The 2015-16 Budget
announced that
arrangements for income tax
deductions for a taxpayer’s
own vehicle used for
business will change from 1
July 2015.
Under the new
arrangements only two of
the existing four deduction
methods will be available:
the cents per kilometre
method (which is capped at
5000 kilometres a year) and
the logbook method.
The 12 per cent of original
value deduction method and
one-third of actual expenses
will no longer be available
from 1 July 2015.
In addition the cents per
Simplify the car expense
substantiation methods
Legislation for this measure
has not yet been drafted.
In the 2015-16 Federal
Budget, the government
announced that it will
simplify the car expense
deductions for individuals.
Under current
arrangements, there are four
methods for claiming car
expenses:
- Cents per kilometre capped at 5,000kms
- Logbook - unlimited kms
- 12% of original value
- One-third of actual
expenses
To simplify the rules, from 1
July 2015 the government
will abolish the one-third of
actual expenses method and
12% of original value
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kilometre method will be
simplified to use a standard
rate of 66 cents per km
rather than a rate based on
the engine size of the car.
For 2014-15 deductions
ranged from 65 cents a
kilometre for vehicles under
1600 cc to 77 centres a
kilometre for those over 2.6
litres.
Legislation for this measure
has not yet been drafted.
Updates will be notified on
the AAT website when they
become available.
See:
ATO: Simplify the car
expense substantiation
methods
Government employees
ODA employees income tax
exemption
It will also remove an income
tax exemption that is
method. The cents per
kilometre method (with the
existing 5,000km cap) and
the logbook method (with
unlimited kms) will remain.
The cents per kilometre
method will be simplified to
use a standard rate of 66
cents per km rather than a
rate based on the engine size
of the car.
For the current
arrangements for claiming a
car expense deduction,
see Car expenses
See:
ATO: Simplify the car
expense substantiation
methods
Budget 2015-16 Budget
paper No. 2 - Revenue
Measures
Remove the income tax
exemption available to
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currently available to
government employees who
earn income while delivering
Official Development
Assistance overseas for more
than 90 continuous days.
This measure will take effect
from 1 July 2016 and is
estimated to have a gain to
revenue of $6.7 million over
the forward estimates
period.
See:
Budget 2015-16 Budget
Paper No. 2: Revenue
Measures
certain government
employees working overseas
Legislation for this measure
has not yet been drafted.
In the 2015-16 Federal
Budget, the government
announced that it will
amend the law to remove
the income tax exemption
available to government
employees who work
overseas to deliver Official
Development Assistance
(ODA).
Under current
arrangements, section 23AG
of the Income Tax
Assessment Act 1936 (ITAA
1936) exempts the income
of Australian residents who
work overseas for more than
90 continuous days and
meet certain qualifying
conditions. The conditions
include Australian
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government employees
delivering ODA.
The original purpose of the
exemption was to avoid
double taxation, but in many
cases the employee now
avoids income tax in both
the source country and
Australia.
The qualifying conditions
within section 23AG of the
ITAA 1936 will be amended
so that from 1 July 2016,
Australian government
employees who work
overseas to deliver ODA will
no longer qualify for
exemption from income tax.
Australian Defence Force
and Australian Federal Police
personnel and individuals
delivering ODA for a charity
or private sector contracting
firm will maintain eligibility
for the exemption.
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See:
ATO: Remove the income tax
exemption available to
certain government
employees working overseas
Budget 2015-16 Budget
paper No. 2 - Revenue
Measures
For the current tax
arrangements for working
overseas, see Working
overseas
Business and employees
Employee Share Ownership
Schemes
Tax concessions for
Employee Share Ownership
Schemes will be expanded.
The changes include:
- excluding eligible
venture capital
investments from the
aggregated turnover test
and grouping rules (for
the start-up concession);
- providing the capital
gains tax discount to
employee share scheme
interests that are subject
to the start-up
Tax concessions for
Employee Share Ownership
Schemes
The measures are
implemented by the Tax and
Superannuation Laws
Amendment (Employee
Share Schemes) Bill 2015
Legislation has been passed
by both houses of
parliament (25 June 2015)
and is awaiting Royal Assent.
The Tax and Superannuation
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concession, where
options are converted
into shares and the
resulting shares are sold
within 12 months of
exercise; and
- allowing the
Commissioner of
Taxation to exercise
discretion in relation to
the minimum three-year
holding period where
there are circumstances
outside the employee’s
control that make it
impossible for them to
meet this criterion.
See:
Budget 2015 Budget Paper
No 2 - Budget Measures Revenue Measures:
Employee Share Schemes —
further changes to tax
treatment
Laws Amendment (Employee
Share Schemes) Bill 2015
amends the Income Tax
Assessment Act 1997 to
improve the taxation of
employee share schemes
(ESSs) by:
- reversing some of the
changes made in 2009 to
the taxing point for
rights for employees of
all corporate tax entities;
- introducing a further
taxation concession for
employees of certain
small start-up
companies; and
- supporting the
Australian Taxation
Office to work with
industry to develop and
approve safe harbour
valuation methods and
standardised
documentation that will
streamline the process
of establishing and
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maintaining an ESS.
See:
Tax and Superannuation
Laws Amendment (Employee
Share Schemes) Bill 2015
Ministerial Media Release:
Start-ups to get a major
boost with new laws
ASIC: Employee share
schemes
ATO: Encouraging employee
share ownership and
entrepreneurship
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