Showing posts from June, 2011

We have law (almost!) and some guidance - thankfully all before 30 June

We have law – almost! As I predicted, the No. 5 Bill passed the Parliament by 30 June. It is currently awaiting Royal Assent, which we will understand will happen on or before 30 June. At that point, we will be working with a fully-fledged piece of legislation that applies for the 2011 income year.

The good news is that the ATO has been very quick to engage with the professional bodies and discuss what type of interpretative guidance is required. The ATO has convened two meetings of the NTLG Trusts sub-group, where the immediate problem of giving interpretative advice in a short period of time has been discussed. In a very welcome move, the Commissioner has acknowledged that trustees and their advisors have had scant opportunity to consider how the new law applies, and that special administrative arrangements should be put in place for the 2011 income year.

The special administrative arrangements include adopting a similar practice to that outlined in IT 328 and 329 for present entit…

Will we have law before 30 June 2011?

The one question that keeps cropping up is “will the trusts streaming provisions be law before 30 June 2011?” Some practitioners seem to think that with only 13 days before year end, there is no way the provisions will pass. I am not that pessimistic.

The Bill is currently with the House of Representatives. It was due to be debated yesterday, but unfortunately the House were stuck on other matters. The next sitting day is Monday, and we will be keenly watching to hear the statements that are made in the debate. The Bill has been referred to the Senate Economics Committee, but that is only for the unrelated measures in Schedule 5 (concerning car fringe benefits) and that committee has been asked to report by Tuesday, so it should not hold up the Bill. There are four Senate sitting days next week, and we understand that the Bill will not be met with any opposition. There is then a week to obtain Royal Assent. It is a tight timeframe, but it is not impossible.

Thanks to everyone who has…

Finally! The new measures to allow streaming of capital gains and franked distributions have been introduced into Parliament

Finally! The new measures to allow streaming of capital gains and franked distributions (including franking credits) have been introduced into Parliament. Now that they are making their way through the Parliamentary process, it is quite safe to say there will only be minor amendments, if any at all. The good news for tax practitioners is that we now have a clear idea of what we are working with, and how to achieve certainty for our clients. The bad news is, there is very little time to do it!

Here at The Tax Institute, we have been busy putting together our information and publication packages to ensure you are up-to-speed and ready to advise your clients. You can view the brochure setting out our full offering here.  There’s CPD sessions, publications, live streaming – pick and choose the option that best suits you and your practice.

We will also be running this blog, so members can have an opportunity to share ideas, reveal problems and help each other get through this testing time.