Submissions

The Tax Institute is the most respected and influential contributor to the development of tax policy and administration in Australia. As part of this contribution, we prepare top level submissions on tax policy, administration and technical matters at both Federal and State levels. Non-confidential submissions prepared from 1996 onwards and covering legislation, ATO and Treasury consultative documents and papers, as well as rulings, determinations and a range of other ATO opinion and guideline documents, are available here.

• Three-yearly audit cycle for some SMSFs

  03 Sep 2018

  The Tax Institute welcomes the invitation to make a submission to Treasury in relation to the ‘Three-yearly audit cycle for some self-managed superannuation funds’ Discussion Paper dated July 2018 (Discussion Paper). The Tax Institute does not support the proposal for a three-yearly audit cycle for SMSFs and has detailed the reasons within this submission. The Institute considers other alternatives should be investigated to achieve the objectives of reducing red tape and compliance burdens for SMSF trustees. 

• Designing a Modern Australian Business Number System

  31 Aug 2018

  The Tax Institute welcomes the opportunity to make a submission to Treasury in relation to the Designing a Modern Australian Business Number System Consultation Paper (Consultation Paper). A review of the Australian Business Number (ABN) system is supported. The use of an ABN has evolved considerably since its role as a core element of the introduction of the GST almost 20 years ago with the evolution of the economy and the increasing flexibility of the workforce. Our submission below addresses our main concerns in relation to the Consultation Paper. We note some general comments on certain aspects of the proposal to modernise the ABN system and a recommendation for the definition of “carrying on an enterprise” be the same for both the application for an ABN and applying for GST registration.

• Allocation of profits in professional firms – Gateway issues

  16 Aug 2018

  The Tax Institute has made a submission to the Australian Taxation Office in relation to the issues currently being considered by the ATO Professional Firms Working Group. Our submission relates to the following three documents (Draft Guidance) issued for consultation to the ATO Working Group on 28 June 2018, including: Definition of professionals; Commercial Rationale; and High Risk Factors. We have extracted a copy of the Draft Guidance issued by the ATO in relation to the above in the Appendix.

• Stapled Structures – Integrity Conditions for Transitional Rules and Infrastructure Concession

  14 Aug 2018

  The Tax Institute refers to the opportunity to make a submission to Treasury in relation to the Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax and Other Measures) Bill 2018: Integrity measures Exposure Draft (Exposure Draft) released for consultation on Tuesday, 7 August 2018. The Tax Institute is disappointed with the one-week consultation period for the Exposure Draft. Given the importance of these issues and the potential impact, a full consultation period of at least four weeks should have been provided.

• Draft Taxation Ruling TR 2018/D1- Income Tax: the ‘in Australia’ requirement

  10 Aug 2018

  The Tax Institute welcomes the opportunity to make a submission to the Australian taxation Office (ATO) in relation to Draft Taxation Ruling TR 2018/D1- Income Tax: the ‘in Australia’ requirement for certain deductible gift recipients and income tax exempt entities. Our submission below addresses some concerns we have with each of the following conditions: DGR in Australia condition; Division 50 in Australia condition; and Refund of Franking Credits condition.

• TD 2018/D3 trust splitting

  08 Aug 2018

  The Tax Institute welcomes the opportunity to make a submission to the Australian Taxation Office in relation to the Draft Tax Determination TD 2018/D3 Income Tax: will a trust split arrangement of the type described in this draft Determination cause a new trust to be settled over some but not all assets of the original trust with the result that CGT Event E1 in subsection 104-55(1) of the Income Tax Assessment Act 1997 happens? 

• Board of Taxation – Review of Small Business Tax Concessions

  06 Aug 2018

  The Tax Institute welcomes the invitation to make a submission to the Board of Taxation in relation to its review of the small business tax concessions. We consider that there are two key issues in relation to the small business tax concessions that need to be addressed - a lack of simplicity and efficiency.

  The complexity in relation to applying the concessions gives rise to high compliance costs and in turn can encourage complex structuring. We have made some general comments in relation to the small business tax concessions and specifically in relation to the small business CGT concessions below. We have also provided responses to the questions posed in the Consultation Guide where possible.

• Car Parking Fringe Benefits – recommended legislative amendments

  30 Jul 2018

  The Tax Institute considers that the taxation of car fringe benefits needs to be reviewed in light of the outcome in FCT v Qantas Airways Ltd [2014] FCAFC 168 (Qantas). The issues we have noted cannot be resolved by administrative means, so in this regard we have made several recommendations for legislative amendments. 

• PCG 2018/D3 - Income Tax: central management and control test of residency: identifying where a company's central management and control is located

  25 Jul 2018

  The Tax Institute, Chartered Accountants Australia and New Zealand, Corporate Tax Association, the Group of 100 and the Business Law Section of the Law Council of Australia (Joint Bodies) welcome the opportunity to make a submission to the Australian Taxation Office (ATO) in relation to the Practical Compliance Guideline PCG 2018/D3 – Income Tax: central management and control test of residency: identifying where a company’s central management and control is located (Draft PCG). 

  Our submission addresses our main concerns in relation to the Draft PCG. In particular, the interpretation being given to the corporate residency test; Technical issues with the Draft PCG; and Requirement for a further review of the corporate residency test. 

• Independent Review of the Australian Public Service

  20 Jul 2018

  The Tax Institute welcomes the opportunity to make a submission to the Department of the Prime Minister and Cabinet in relation to the Independent Review of the Australian Public Service. Through its work in relation to tax policy and administration, The Tax Institute liaises with a number of Departments of State and government entities that engage staff under the Public Service Act 1999 (Cth) including:

  • The Treasury; The Australian Taxation Office; The Inspector General of Taxation; and The Board of Taxation.

  The focus of our submission is on the two key agencies involved in policy, law design and administration in the Australian tax and superannuation systems – being the Treasury and the Australian Taxation Office. The matters raised in our submission are directly relevant to these aspects of the APS review:

  • delivering high quality policy advice, regulatory oversight, programs and services;
  • tackling complex, multi-sectoral challenges in collaboration with the community, business and citizens;
  • improving citizens’ experience of government and delivering fair outcomes for them; and
  • acquiring and maintaining the necessary skills and expertise to fulfil its responsibilities.