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2nd May 2000
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This material is reproduced by permission but does not purport to be the official or authorised version.
The accuracy of the content is not guaranteed. Please rely only on the authorised document.
The New Business Tax System (Miscellaneous) Bill (No. 2) ('Bill No. 2') was introduced into Federal Parliament recently. The legislation is still in Bill form and is expected to receive Royal Assent in late June 2000.
The Bill contains, amongst other provisions, the following proposals:
- Life Insurance companies - an entirely new basis for the taxation of life insurance companies. The intent is that all the profits of the company attributable to shareholders will be taxed at corporate rates.
- Taxing super funds paying pensions.
- Amendments to the divided imputation system to ensure that franking credits are available in respect of instalments paid under the PAYG instalment regime and to ensure that the dividend imputation system takes account of the 34% tax rate.
- The threshold for the small shareholder exemption under the holding period rule ( the '45 day rule') will be increased from $2,000 to $5,000.
- Scrip for scrip rollover - extends the circumstances in which the rollover is available.
- The PAYG instalments regime is to have its own general anti avoidance provision. The provision is to operate where there is a scheme to reduce or defer PAYG instalments.
- Under the new Bill No. 2, all assets that relate to current pension liabilities in the fund MUST be segregated. This MUST be done over a three-month period from 1 July 2000 to 1 October 2000.
DISCLAIMER: Supercorp Australia Pty Ltd and its officers and employees, disclaim all and any liability and responsibility to any person for any act or consequence or omission in respect of the above information. No person should rely on the contents of this information without obtaining advice from a qualified professional.
Copyright © 1999-2002 - Supercorp Australia Pty Ltd - ABN 92 063 307 700
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