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KPMG Tax Now highlights report – December
With the month’s key developments in tax, economics, regulation and complianc...
Robust comparables: Success for Glencore in the Full Federal Court
The Full Federal Court handed down its decision in Commissioner of Taxation v...
Signing of the Regional Comprehensive Economic Partnership
After a reported eight-year period of negotiations, 15 countries joined toget...
Payment times reporting regime now law: Immediate actions to consider
Australia now has a new payment times reporting (PTR) regime, beginning 1 Jan...
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News in brief… 22 December 2020
Government announces two more priority areas for Deregulation Taskforce; Treasurer registers small business insolvency regulations; Parliamentary committee to review critical infrastructure legisla...
News in brief… 21 December 2020
Treasury releases paper on modernising business communications; Treasurer registers regulations on foreign investment fees; Federal Government announces changes to cabinet; ATO update: JobMaker Pla...
News in brief… 18 December 2020
Legislation update: Temporary full expensing measure among latest Acts to receive Royal Assent; Audit office releases review into ATO’s implementation of COVID-19 economic response; Government cons...
News in brief… 17 December 2020
ATO advice and guidance; Business, investment visas to be simplified: Federal Government; Ruling released on Victoria payroll tax exclusion for contractors; Payroll tax relief available under NSW $...
Latest Content
Small business tool released ahead of Payment Times Reporting regime
For many organisations subject to the new Payment Times Reporting legislation, the release of the Small Business Identification Tool (SBI Tool) has been eagerly anticipated, with many unable to commence internal projects without access to the tool. What is the SBI Tool? The Federal Government hopes that the SBI Tool will reduce the compliance burden for reporting entities by assisting reporti...
Electronic invoicing: Leveraging data to transform tax and procurement
It is common knowledge that process and system integration is an essential part of running an effective enterprise. However, manual processes and inconsistent data standards in invoicing, expense approvals and fulfillment are commonplace for many businesses. As a result, critical information can become siloed across business functions and between suppliers, preventing many organisations from ...
Webinar recording: Shining a Light on the RCEP
After eight years of negotiation, 15 countries came together on 15 November 2020, to sign one of the largest ever free trade agreements – the RCEP, which covers approximately 30 percent of world GDP and almost 30 percent of the global population. The agreement will provide a framework for facilitating free and more streamlined trade arrangements among the signatories. This agreement is unprec...
MYEFO provides positive signs for improvement in federal finances
The Federal Government’s mid-year economic and fiscal outlook (MYEFO) documents show some improvement in the federal finances in just the two months since the 2020-21 Budget. This includes the prospect that the Australian economy will indeed grow, by 0.75 percent, in 2020-21. In addition, Treasury forecasts that the underlying cash balance for 2020-21 will be a deficit of $197.7 billion, an i...
New ruling on withholding tax exemption for non-residents’ super, sovereign immunity rules
The Australian Taxation Office (ATO) released on Wednesday 16 December LCR 2020/3 containing the administrator’s views on issues relating to changes to the withholding tax exemption for non-residents’ superannuation funds and the new sovereign immunity rules. The LCR applies from 1 July 2019. In this report we touch on the key aspects for affected entities. Background 1. The withholding tax...
Making sense of the changing Australia-China trade relationship
The Australia-China bilateral relationship is changing rapidly and is at its weakest point in decades. The attitude towards Australia in China, from senior politicians, Chinese media to local residents, has significantly deteriorated. There have been specific incidents over the past few years that have inflamed tensions, but the full story is much more complex. How China sees itself, its role...
Webinar recording: Attracting and retaining talent - Australia’s Global Talent Scheme
2020 has been a year full of surprises and uncertainty as we all look to navigate the new norm of COVID-19. While the landscape for Australian employers is ever-changing, the future is bright. There are opportunities for Australian businesses to embed and grow talent by utilising the Australian Government’s Global Talent Visa Program. This webinar explores the following topics: Australia’...
Leveraging payroll for best practice wage compliance
In the current regulatory environment, organisations need to have confidence in their payroll and compliance systems. High profile and public conversations about industrial relations issues have drawn the attention of regulators and Government to the underpayment of employees. In response, many organisations have been forced to consider how their payroll systems may have inadvertently led to ...
Webinar recording: US Post-Election - What’s in store for 2021 and beyond?
With the recent United States (US) election and ongoing economic impacts of COVID-19, all eyes are on the US and the potential policy and regulatory changes that could be introduced under a new administration of President-elect Biden. KPMG experts hosted a virtual forum on 10 December 2020 that explored how these developments may impact Australian investors into the US and Australian subsidiar...
Final risk guidance released on outbound interest-free loans
The Australian Taxation Office (ATO) has now finalised its long-awaited risk guidance relating to outbound interest-free loans made between an Australian taxpayer and its international related parties. Schedule 3 to PCG 2017/4 has effect from 1 January 2020 and applies to existing and newly created outbound interest free loans. Our recent article discussed the main features of the draft guida...
New Zealand introduces new 39 percent personal tax rate
The New Zealand Government has legislated a new 39 percent personal tax rate on income above $180,000 from 1 April next year (the 2021-22 tax year). Consequential changes The legislation also contains a number of consequential amendments: a new Fringe Benefit Tax (FBT) rate of 63.93 percent for all-inclusive pay above $129,681 and the single rate and pooling of non-attributed fringe benefi...
ATO releases 2018-19 corporate tax transparency data
The Australian Taxation Office (ATO) published its Corporate Tax Transparency Report (CTTR) for the 2018-19 income year on Thursday, 10 December. This report, which is published each year using income tax and petroleum resource rent tax data, continues to stand out as one of the more transparent measures for tax payments globally. The ATO is legally required to publish certain tax entity info...
Webinar recording: Corporate Tax Speed Update
Topics covered during this session included: Tax Policy in a post-COVID-19 world United States (US) Tax update – Post-US Election key themes Federal Budget and COVID-19 incentives – what are the key measures and how do they apply to you? Foreign Investment Review Board reforms – tax and other conditions key takeaways Research and Development (R&D) and Grants update – what are the cha...
Upcoming webinar – Shining a Light on the RCEP
This month we are pleased to continue our Shining a Light series with a special webinar focusing on the Regional Comprehensive Economic Partnership (RCEP). After eight years of negotiation, 15 countries came together on 15 November 2020, to sign one of the largest ever free trade agreements – the RCEP, which covers approximately 30 percent of world GDP and almost 30 percent of the global popul...
The payroll tax sting in the Superannuation Guarantee Amnesty tail
A question we have been asked lately has been whether there are any payroll tax implications arising from making a disclosure under the Superannuation Guarantee Amnesty (the SG Amnesty) that ended on 7 September 2020. In this article, we explain why employers are right to consider the potential flow-on implications for payroll tax and the disclosure requirements from a payroll tax perspective ...
Briefing documents: Payment Times Reporting
The Payment Times Reporting (PTR) guidance material (GM) provides insights into the intended administration of the PTR regime which commences on 1 January 2021. The GM notes the PTR Regulator will administer the PTR Acts in accordance with the GM. Importantly, the GM is not a static document and points out that it is the responsibility of reporting entities (REs) to ensure they refer to the l...
JobMaker Hiring Credit now open – What do employers need to know?
The Federal Treasurer has now registered the legislative instrument that makes the JobMaker Hiring Credit (JHC) a reality for eligible Australian employers. In parallel, the Commissioner of Taxation has registered a legislative instrument that sets out some of the administrative requirements for providing information to the Commissioner in support of JHC claims. These employers can receive a ...
Legislation introduced to ensure food supplements are not treated as medicaments
The Federal Government has introduced legislation which proposes to clarify the tariff classification of vitamin products, nutraceuticals and food supplements. The introduction of the Customs Tariff Amendment (Incorporation of Proposals and Other Measures) Bill 2020 in the House of Representatives on 3 December follows recent decisions made in the Administrative Appeals Tribunal (AAT), Federal...
ATO issues taxpayer alert over use of derivative instruments
The Australian Taxation Office (ATO) released on Friday 4 December its Taxpayer Alert TA 2020/5 in relation to structured arrangements that provide imputation benefits on shares, where economic exposure is offset through the use of derivative instruments. During the recent Streamlined Assurance Reviews of superannuation funds, and now managed funds, the ATO became aware of the common use of de...
ATO clarifies application of Double Tax Agreements for remote workers, displaced employees
As the impact of the COVID-19 pandemic on global travel continues, it is essential for employers to review and revisit the Australian tax implications in respect of employees who remain working remotely from Australia. Further to our recent Flash Alert dated 14 August 2020 (Employer Considerations for COVID-19 Displaced Workers Heading into FY2021), the Australian Taxation Office (ATO) has upd...
Substantiating R&D Tax Incentive claims
Contemporaneous documentary evidence is the best, and therefore the recommended, form of evidence to support a Research and Development Tax Incentive (RDTI) claim but a recent Federal Court decision has confirmed its absence is not necessarily fatal to a claim being proven. In Commissioner of Taxation v Bogiatto [2020] FCA 1139, Thawley J of the Federal Court had to determine whether Mr Bogiat...
KPMG Tax Now highlights report – December
With the month’s key developments in tax, economics, regulation and compliance at your fingertips, the KPMG Tax Now highlights report allows you to easily skim through the weeks past, to stay in the know. Access the latest report below:  KPMG Tax Now highlights report - December  Follow KPMG Tax Now Insights on LinkedIn for article updates and more in your timeline. Other month...
Temporary full expensing of depreciating assets – Bill introduced into Parliament
The Treasury Laws Amendment (2020 Measures No.6) Bill 2020 was introduced into Parliament on Wednesday 2 December 2020, containing the extension of the temporary fully expensing of depreciating assets measure originally announced by the Treasurer Josh Frydenberg on 23 November 2020. The Bill amends the current legislation with the original immediate expensing rules which currently only allow b...
Queensland Budget analysis 2020-21
The 2020-21 Queensland Budget sees the State Government continuing its focus on jobs and health. With an election having taken place barely a month ago, the Queensland Government’s budget for 2020-21 confirms the funding of various election commitments, including the construction of innovative new satellite hospitals to ease the burden on the state’s acute care facilities. Read the report: Que...
Webinar recording: Pillar Two – practical issues for structuring of multinational enterprises
This webinar examined how the proposed global minimum tax under the Pillar Two blueprint can be expected to impact a multinational enterprise, from the perspective of headquarter jurisdictions, regional hubs and market jurisdictions. The webinar presentation slides can be found here. Other webinar recordings can be found at KPMG Tax Now – events archive.
Webinar recording: Issues for the banking and finance, funds and insurance sectors
This webinar considers the proposed boundaries of the scope of Pillar One that are relevant to these sectors, and also look at how Pillar Two may impact multinational group operating models. The webinar presentation slides can be found here. Other webinar recordings can be found at KPMG Tax Now – events archive.
Expansion in global mobility – will trans-Tasman be first cab off the rank?
Many Australian organisations’ employee reporting obligations are increasing as their staff take up relocation opportunities in New Zealand (NZ). KPMG has recently been assisting several companies that are facing this scenario. There appears to be two key drivers for this uptick in demand for employees moving to the Land of the Long White Cloud: with the prospect of a potential trans-Tasma...
Victoria’s proposed Electric Vehicles Tax to fund road to the future
The widespread adoption of electric vehicles will significantly reduce Australia’s carbon footprint and it is important that we have the right incentives to encourage better choices for our environment. As part of this week’s state budget, the Victorian Government announced the following initiatives to accelerate the adoption of low and zero emissions vehicles across the state: $25 million ...
NSW Stamp Duty and Land Tax proposed changes – Impact on institutional investors
The New South Wales Budget announcement on 17 November 2020 includes a proposal to replace stamp duty with a broad-based property tax. This consultative process is not the first time there has been consideration of the removal of stamp duty but given the potential scope, investors should take it seriously and consider their options including potentially, participation in the consultation proce...
Victorian Budget analysis 2020-21
The 2020-21 Victorian Budget sees the Victorian Government investing further in lifting the economy out of recession. The Victorian Government’s budget for 2020-21 projects an operating deficit of $23.3 billion, to follow a deficit of $6.5 billion for 2019-20. However, despite projected infrastructure investment of more than $75 billion over the forward estimates period to 2023-24, government ...
Webinar recording: Issues for the extractives, renewable commodities and energy sectors
The webinar presentation slides can be found here. The webinar series continues with further sessions to come – register here.
Robust comparables: Success for Glencore in the Full Federal Court
The Full Federal Court handed down its decision in Commissioner of Taxation v Glencore Investment Pty Ltd [2020] FCAFC 187 (Glencore decision) on 6 November 2020, with Glencore largely successful. The Commissioner’s appeal was allowed in only one confined respect, relating to a freight allowance. Aside from this, Glencore’s success at first instance stands. Read the report: Robust comparables...
Webinar: Corporate Tax Speed Update
Topics to be covered during this session include: Tax Policy in a post-COVID-19 world United States (US) Tax update – Post-US Election key themes Federal Budget and COVID-19 incentives – what are the key measures and how do they apply to you? Foreign Investment Review Board reforms – tax and other conditions key takeaways Research and Development (R&D) and Grants update – what are th...
Extension of temporary immediate expensing measure announced
Treasurer Josh Frydenberg announced on Monday 23 November 2020 his intention to expand the eligibility for the temporary full expensing measure, which was included in the 2020-21 Federal Budget. The current legislation with the original immediate expensing rules only allows businesses with aggregated turnover of less than $5 billion to deduct the full cost of eligible depreciable assets of any...
Signing of the Regional Comprehensive Economic Partnership
After a reported eight-year period of negotiations, 15 countries joined together on 15 November 2020, to sign one of the largest ever free trade agreements, known as the Regional Comprehensive Economic Partnership (RCEP). In its simplest form, RCEP may be considered as a framework for facilitating free and more streamlined trade arrangements between RCEP countries, recognizing that the countri...
2020 Global Assignment Policies and Practices Survey report
For global mobility leaders of multinational organisations, benchmarking your global mobility policies and practices against those of other global organisations and industry peers can be a powerful tool for reflecting on your current approach and planning how to prepare your talent mobility program for the future. To help, KPMG International conducts an ongoing annual survey of global mobility...
Webinar recording: Scope of Pillar One’s ‘Amount A’, role of ‘Amount B’ for marketing and distribution activities
KPMG presenters looked at the attributes that could bring a multinational business within the scope of Amount A – the type of business activity, the extent of foreign revenues and the level of profitability.The webinar also examined how the proposed “Amount B”, or standardised remuneration of baseline marketing and distribution activities, will affect the tax obligations and compliance of multi...
NSW Budget 2020-21 analysis
The New South Wales (NSW) Government’s budget for 2020-21 projects a deficit of $16 billion to follow a deficit of $6.9 billion for 2019-20, but a return to surplus by 2024-25.There are some sobering figures here, but there is also much to be positive about.Reform of the stamp duty and land tax regimes is something that KPMG supported in its submission to NSW Treasury’s Review of Federal Financ...
ATO accepts Full Federal Court’s judgement in tax residency case
The Full Federal Court judgment in FCT v Pike [2020] FCAFC 158 has considered the principles of tax residence, and the application of the residence tiebreaker provisions of international double tax treaties. The Australian Taxation Office’s (ATO) recently-released Decision Impact Statement accepts the conclusions reached by the court, and does not suggest this will result in a change to th...
Healius decision – defining a business’ structure
The decision of the Full Federal Court in Commissioner of Taxation vs Healius Limited [2020] FCAFC 173, overturning the decision of the primary judge, highlights the important role that a proper characterisation of the business plays in determining the age old question of whether expenditure is on revenue or capital account.Once again, the character of the advantage sought largely turned on the...