Rolling Out Tax Reform

• 2013
  • Introduced reforms to modernise Australia's transfer pricing rules and the general anti-avoidance rules
  • Enhancing the integrity of the corporate tax base by addressing loopholes in the consolidation regime, non-resident CGT arrangements, concessions for mining exploration expenditure and the offshore banking unit regime
  • Released a base erosion and profit shifting scoping paper examining possible responses to the risks to the integrity of the corporate tax base
  • Removing stamp duty for offshore petroleum projects (AFTS Recommendation 50)
  • Better targeted the R&D tax incentive to companies with annual aggregated Australian turnover less than $20 billion
  • Closing a loophole that allows sophisticated investors to engage in 'dividend washing' (AFTS Recommendation 39)
  • Introduced uplift factor for losses of certain infrastructure projects (AFTS Recommendation 31)
  • Phasing out the net medical expenses tax offset (AFTS Recommendation 7)
  • Introduced Dad and Partner Pay to build on the Paid Parental Leave (PPL) scheme
  • Decreasing the taper rate of the Newstart Allowance for single principal carers (AFTS Recommendation 85)
  • Realigning eligibility requirements for parenting payment following a six year transition (AFTS Recommendation 85)
  • Increasing the Superannuation Guarantee rate from 9 per cent to 9.25 per cent
  • Providing a $35,000 superannuation concessional contributions cap for all people aged 60 and over from 1 July 2013 and for all people aged 50 and over from 1 July 2014 (AFTS Recommendation 18)
  • Abolishing the Superannuation Guarantee maximum age limit (AFTS Recommendation 20)
  • Making excess contributions tax fairer by taxing excess contributions at the marginal rates plus an interest charge
  • Establishing the Council of Superannuation Custodians
  • Arrangements being finalised to develop a Tax System Advisory Board (AFTS Recommendation 115)
  • Establishing a Tax Studies Institute as a centre of research excellence on the tax and transfer system (AFTS Recommendation 134)
• 2014
  • Leveraging the Government's chair of the G20 to advance the case for concerted multilateral action on corporate tax base integrity and influencing global forums to counter base erosion and profit shifting
  • Introducing changes to enhance the integrity of the corporate tax base by addressing artificial loading of debt into Australia and by eliminating tax advantages available for (foreign-owned) multiple entry consolidated groups
  • Introducing a cash bidding system, to complement the operation of the PRRT, to allocate offshore petroleum exploration acreage in mature areas and those known to contain petroleum (AFTS Recommendation 49)
  • Phasing down the interest withholding tax paid by financial institutions on offshore borrowings (AFTS Recommendation 33)
  • Supporting innovative small Australian businesses through the quarterly credits regime
  • Funding DisabilityCare Australia through a 0.5 per cent increase in the Medicare levy
  • Strengthening Paid Parental Leave by allowing parents to include their time on Paid Parental Leave towards a claim for a subsequent birth
  • Replacing the Baby Bonus with an increase in FTB-A (AFTS Recommendation 91)
  • Introducing a $2,000 cap on deductions for self-education expenses (AFTS Recommendation 8)
  • Indexing tobacco excise to AWOTE (AFTS Recommendation 74)
  • Increasing the Superannuation Guarantee rate from 9.25 per cent to 9.5 per cent
  • Allowing future earnings on assets supporting superannuation income streams to be tax free up to $100,000 with earnings above $100,000 taxed at the concessional rate of 15 per cent and ensuring that defined benefit funds are similarly impacted (AFTS Recommendation 19)
  • Extending concessional superannuation tax treatment to Deferred Lifetime Annuities