Middle market businesses continue to pull more than their share of economic weight in the Australian economy over the last 12 months as the economic landscape continued to shift and pivot in a fluid financial system.
In March 2023, Treasury released an exposure draft legislation for public comment on the new thin capitalisation rules. We made a comprehensive submission in response to the exposure draft legislation.
The Government will implement new thin capitalisation rules that will operate from 1 July 2023. The proposed new rules will apply to deny interest deductions for taxpayers with foreign shareholders, or foreign operations, or that are part of multinational groups.
Companies that have undertaken Research and Development (“R&D”) activities during the year ended 30 June 2022 are required to register their activities with AusIndustry prior to 30 April 2023. This deadline is strictly enforced by AusIndustry.
Ali Suleyman, Elena Bogomolova and Gary Matthews from Pitcher Partners Melbourne, present the annual Fringe Benefits Tax (FBT) Update.
Treasury has released exposure draft legislation to overhaul the thin capitalisation rules for non-financial entities. The proposal will replace the current asset-based 60% safe harbour test with a fixed ratio earnings limit (which will limit net debt deductions to 30% of EBITDA).
The temporary full expensing (“TFE”) rules provide for a full deduction to businesses for the cost of eligible depreciating assets in the year they are first used, or installed ready for use, for a taxable purpose prior to 30 June 2023. Taxpayers should bear this strict timeline in mind to avoid missing out on accelerated tax deductions. Merely contracting for the purchase of an asset, or even becoming the owner of the asset by 30 June 2023 is not sufficient.
The non-arm’s length expense (“NALE”) rules for complying superannuation entities were introduced with effect from 1 July 2018.
As the Christmas season fast approaches, benefits are typically provided to employees and clients by employers, by associates of employers, or under an arrangement with a third party in the form of entertainment and gifts. These benefits often attract FBT.
Treasury has released exposure draft legislation to implement an integrity measure to make corporate distributions unfrankable where they were funded by capital raising.
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