Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

Type
Government
Portfolio
Treasury
Originating house
House of Representatives
Status
Before Reps
Parliament no
45

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Summary

Amends the: Income Tax Assessment Act 1997 and Tax Laws Amendment (Research and Development) Act 2015 to: permanently increase the research and development (R&D) expenditure threshold from $100 million to $150 million; link the R&D tax offset for refundable R&D tax offset claimants to their corporate tax rates plus a 13.5 percentage point premium; cap the refundability of the R&D tax offset at $4 million per annum; and increase the targeting of the R&D tax incentive to larger R&D entities with high levels of R&D intensity; Income Tax Assessment Act 1997 to extend the concept of tax benefits in the general anti-avoidance rule in Part IVA of the Income Tax Assessment Act 1936 to include the R&D tax offset; Income Tax Assessment Act 1997, Income Tax Rates Act 1986 and Income Tax (Transitional Provisions) Act 1997 to: remake and consolidate provisions relating to clawback of R&D recoupments and feedstock adjustments; introduce a new uniform clawback rule that applies for recoupments, feedstock adjustments and balancing adjustment amounts that are included in an R&D entity’s assessable income; and introduce a new catch-up rule for R&D assets; Taxation Administration Act 1953 to require the Commissioner of Taxation to publish information about the R&D activities of R&D entities claiming the R&D tax offset following a two-year delay; Industry Research and Development Act 1986 (IR&D Act) to: provide for the Board of Innovation and Science Australia (ISA) to make a determination, by notifiable instrument, about how it will exercise its powers and perform its functions and duties; and expand the existing power of the Board of ISA and its committees to delegate some or all of their functions to include certain members of the Australian Public Service; Industry Research and Development Decision-making Principles 2011 to provide that extensions of time granted under the IR&D Act may relate to certain applications; Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 to: require an entity to use the value of the assets, liabilities and equity capital that are used in its financial statements; remove the ability for an entity to revalue its assets specifically for thin capitalisation purposes; and ensure that non-ADI foreign controlled Australian tax consolidated groups and multiple entry consolidated groups that have foreign investments or operations are treated as both outward investing and inward investing entities; A New Tax System (Goods and Services Tax) Act 1999 to require offshore suppliers of rights or options to use commercial accommodation in Australia to include these supplies in working out their GST turnover; A New Tax System (Luxury Car Tax) Act 1999 to remove liability for luxury car tax from cars that are re-imported following service, repair or refurbishment overseas; and Income Tax Assessment Act 1997 and Taxation Administration Act 1953 to: extend the circumstances in which an entity is a significant global entity; and amend the country by country reporting requirements to apply to a subset of significant global entities referred to as country by country reporting entities.

Progress

House of Representatives
Introduced and read a first time 20 Sep 2018
Second reading moved 20 Sep 2018

Documents and transcripts

Text of bill

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Explanatory memoranda

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Proposed amendments

Senate

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Schedules of amendments

No documents at present

Notes

Helpful information

Text of bill

  • First reading: Text of the bill as introduced into the Parliament
  • Third reading: Prepared if the bill is amended by the house in which it was introduced. This version of the bill is then considered by the second house.
  • As passed by both houses: Final text of bill agreed to by both the House of Representatives and the Senate which is presented to the Governor-General for assent.

Explanatory memoranda

  • Explanatory memorandum: Accompanies and provides an explanation of the content of the introduced version (first reading) of the bill.
  • Supplementary explanatory memorandum: Accompanies and explains amendments proposed by the government to the bill.
  • Revised explanatory memorandum: Accompanies and explains the amended version (third reading) of the bill. It supersedes the explanatory memorandum.

Proposed amendments

Circulated by members and senators when they propose to make changes to the bill. For details about the outcome of proposed amendments please refer to either the Votes and Proceedings (House of Representatives) or the Journals (Senate).

Schedules of amendments

Schedules of amendments list amendments agreed to by the second house are communicated to the first house for consideration. Subsequent action by either house may also be included in a schedule.