On Sep. 12, AST PRL issued bill on laws re tax, and related purposes.
AST PRL introduced Treasury laws amendment (2024 tax and other measures no. 1) bill 2024, which is a bill for an act to amend law re taxation, and for related purposes.
In addition, AST PRL published an explanatory memorandum with respect to the bill.
Bill includes schedule 1 about foreign resident capital gains withholding payments.
Schedule 2 on allowing employers to make single touch payroll (STP) declarations for extended periods; schedule 3 re self-amendments by small and medium businesses.
Plus, schedule 4 contains amendments on reducing use of checks for tax refunds.
Foreign Resident Capital Gains Withholding
Schedule 1 amends Taxation administration act (TAA) to ensure better compliance by foreign residents with their Australian tax obligations and support the collection of tax.
Namely, tax liabilities from foreign residents; schedule 1 fully implements Increasing the integrity of the foreign resident capital gains withholding regime measure in the 2023-2024 mid-year economic and fiscal outlook (also referred to as the MYEFO).
Single Touch Payroll Declarations
Schedule 2 lessens administrative burden for employers reporting under STP (#218138).
It provides that an employer can make a standing declaration, covering multiple lodgments, that the STP information they provide to their agent for lodging is correct.
In addition, that their agent has authority to lodge the information on their behalf.
Previously, law required an employer to lodge a declaration to their agent re each STP lodgment; schedule 2 partially implements Driving collaboration with small business to reduce the time spent complying with tax obligations measure in 2023-24 Budget.
Self-Amendments by Small, Medium Businesses
Schedule 3 amends Income tax assessment act 1936, to allow amendments to be made to the assessments of small and medium business taxpayers who apply to AST Tax within 4 years after the day the AST Tax gave notice of an assessment, #220864.
Extending the amendment period for such taxpayers seeks to alleviate some of the administrative and financial burdens for both taxpayers as well as the AST Tax.
Schedule 3 also partially implements the 2023-24 Budget measure referred to above.
Reducing Use of Checks for Tax Refunds
Schedule 4 amends TAA to extend circumstances in which AST Tax may retain entity’s tax refund to encourage taxpayers to provide AST Tax with valid Australian financial institution account details to facilitate the faster, safer, cheaper payment of refunds.
Schedule 4 also partially implements the 2023-24 Budget measure referred to above.
Next Steps
Second reading was moved Sep. 12, 2024; bill will follow required legislative process.
Sep. 19, 2024 Bill Referral
On Sep. 19, 2024, AST PRL said the bill detailed above has been referred to the Senate Economics Legislation Committee for inquiry and report by Oct. 24, 2024.
Committee welcomes written submissions to the inquiry, to be made by Oct. 4, 2024.
Oct. 2024 Committee Recommendation
On Oct. 24, 2024, AST PRL published a document authored by Economics Legislation Committee, which recommends that the bill discussed above be passed by AST PRL.
In Nov. 2024, AST Tax proposed website guidance about withholding, see #232299.
The act commences in accordance with s 2: schedules 1, 3, 4 commence on Jan. 1, 2025; schedule 2 commences Dec. 11, 2024; remaining provisions on Dec. 10, 2024.
Regulators
AST GVT; AST PRL
Entity Types
Auditor; Corp; Inv Co; Pension
Reference
RF C2024A00135, 12/12/2024; RF 2024-003316, ISBN 978-1-76093-733-1, Info 10/24/2024; PR 9/19/2024; Bill, Info 9/12/2024; Citation: Income tax assessment act 1936; Taxation administration act; Treasury laws amendment (2024 tax and other measures no. 1) act 2024;
