THE SMALL BUSINESS capital gains tax (CGT) concessions are far too complex and eligibility rules need to be simplified, according to the Institute of Public Accountants (IPA).

“Although the rules were subject to a post implementation review by the Board of Tax, the eligibility rules need to be simplified,” said IPA chief executive officer, Andrew Conway.

“Their complexity is partly due to having to deal with multiple business structures and anti-avoidance provisions but there is an opportunity to rationalise and streamline the CGT concessions which was also part of the Henry Review recommendations.

“The four current and separate small business CGT concessions require taxpayers to navigate complex legislation. 

“A number of existing concessions such as the 50 per cent reduction and the 15 year exemption are highly concessional and can eliminate any CGT liability when business owners exit their investment.

“The concessions are generally uncapped and are generous tax concessions which should be repealed.  The savings can be redirected to assist small businesses during more productive times in the business life cycle,

“The concessions reward successful businesses at the end of the business cycle.  Many businesses miss out using these concessions due to the fact that the business sale does not generate goodwill.

“The IPA recommends that these concessions be reviewed and redirected towards the start-up and growth phase of the business to improve the chances of survival.

“The CGT concessions provisions provide windfall gains to successful businesses and are too focused on the end point of the business life cycle.  They can also reduce incentives for business to grow in certain circumstances.

“We support the recommendation by the Henry Review to rationalise and streamline the CGT small business concessions from four separate concessions down to two,” said Mr Conway.

These recommendations form part of the IPA’s pre-Budget submission.  For more information go to: http://bit.ly/2jxoU7L

publicaccountants.org.au

ends

PARLIAMENT’s Intelligence and Security Committee will hold two public hearings on Thursday for its review of the Telecommunications and Other Legislation Amendment Bill 2016.

The Bill amends the Telecommunications Act 1997 to introduce a regulatory framework to manage national security risks of espionage, sabotage and foreign interference to Australia’s telecommunications networks and facilities. These networks and facilities form the backbone to other critical infrastructure sectors in Australia, such as energy, banking and finance, and are vital to the delivery and support of services such as power, water and health.

The regulatory framework established by the Bill is intended to formalise and strengthen existing industry-Government engagement and encourage early engagement with Government agencies on managing national security risks.

Public hearings will be held as follows:

Thursday 16 February 2017

Committee Room 2R1, Parliament House, Canberra
9.00am to 10.00am: Attorney-General’s Department

Committee Room 1R3, Parliament House, Canberra
4.30pm to 6.00pm: Roundtable hearing with Communications Alliance, Optus, Australian Mobile Telecommunications Association, Australian Industry Group and the Australian Information Industry Association

The hearings will be broadcast live at: http://www.aph.gov.au/live

Further information about the inquiry, including submissions, can be accessed via the Committee’s website at http://www.aph.gov.au/pjcis

ENDS

CHAIR of the Tax Practitioners Board (TPB), Ian Taylor, reminds financial planners and advisers who have not yet registered with the TPB that time is running out to take advantage of the transitional registration option which ends on June 30.

Financial planners and advisers who are providing tax (financial) advice as part of their advice to clients for a fee or reward, must be registered with the TPB as a tax (financial) adviser in order to provide this service legally. This applies to:

• Australian financial services (AFS) licensees 
• authorised representatives (ARs) 
• individual ARs
• corporate authorised representatives (CAR) - where an AR operates through a CAR structure, both will need to be registered
• employee representatives who may be required to be registered for the purpose of a company or partnership having a sufficient number of registered individuals - being registered tax (financial) advisers or tax agents. 

"You currently have two options available to register as a tax (financial) adviser," Mr Taylor said. "These options are transitional registration (only available until 30 June) and standard registration.
 
"You may decide that transitional registration is the best option: transitional registration gives you extra time to satisfy the registration requirements under the standard registration option. This includes individuals meeting qualifications and experience requirements, and companies and partnerships meeting the sufficient number requirement," Mr Taylor said.
 
"To register under the transitional option you must have sufficient experience to be able to provide tax (financial) advice services to a competent standard – which is generally the equivalent of 18 months or longer of full time experience," he said.
 
"If you wish to take advantage of the transitional registration option, it is only available until June 30 this year. After this time all registrations and renewals will need to meet the standard registration requirements."
 
Further detail about the registration options is available on the TPB website www.tpb.gov.au

APPLICATIONS are now open for the Visions of Australia regional exhibitions touring program.

THE Australian Bankers’ Association (ABA) will join the four major banks at the House of Representatives Standing Committee on Economics’ public hearings in March for the review of the performance of Australia’s banking and financial system.

One of the committee’s focus areas is on how  individual banks and the banking industry as a whole are responding to issues previously raised in Parliamentary and other inquiries, including through the Australian Bankers' Association's April 2016 six point plan to enhance consumer protections and in response to Government reforms and actions by regulators.

The Chair of the committee, Mr David Coleman, MP, stated that ‘these hearings provide an important mechanism to hold the banking sector to account before the Parliament’.

‘As the ABA is charged with addressing numerous issues of concern to consumers, it is important that they are scrutinised by the committee.’

Public Hearing Details:

Public hearing day 1

Friday, 3 March 2017
Committee Room 2R1,
Parliament House, Canberra
NAB - 9.15am to 12.15pm

Public hearing day 2

Tuesday, 7 March 2017
Main Committee Room,
Parliament House, Canberra
CBA - 9.15am to 12.15pm
ANZ - 1.15pm to 4.15pm

Public hearing day 3

Wednesday, 8 March 2017
Main Committee Room,
Parliament House, Canberra
Westpac - 9.15am to 12.15pm
ABA - 1.15pm to 3.15pm

Website: www.aph.gov.au/economics

ends

THE National Farmers’ Federation has called on the Parliament to pass the Government’s Enterprise Tax Plan in full.

Assistant Minister to the Deputy Prime Minister, Luke Hartsuyker, has welcomed the strong support of Australia’s farmers for the Government’s Enterprise Tax Plan.

Over the weekend, the ​National Farmers’ Federation issued a public warning that valuable new Asian export markets are in jeopardy if the Parliament does not pass the Enterprise Tax Plan in full.

“Australia’s farmers and agribusinesses are very efficient, producing the finest food and fibre in the world. But they are competing with one hand tied behind their backs because of Australia’s uncompetitive business tax rates,” Mr Hartsuyker said.

“Australia is a net exporter of food and fibre, with about two-thirds of total agricultural production exported. These exports make Australia wealthier, providing jobs and supporting regional communities.

“Australian agriculture has significant potential to supply the rapidly growing Asian markets on our doorstep, but the necessary increases in production and processing capability will require significant investment along the supply chain.

“With intense global competition for investment in agribusiness, it is vital that Australia moves toward creating a more competitive atmosphere for business.

“The Coalition Government is determined to deliver more competitive tax rates along the entire supply chain through our Enterprise Tax Plan. Labor’s stated intention of limiting company tax relief to small business will create roadblocks for investment at vital points in the integrated supply chain.

“Australia’s farmers have made it clear that the Government’s Enterprise Tax Plan is vital for our national economic development. Labor now has a choice – support Australia’s farmers by backing the Government’s Enterprise Tax Plan, or prove once again that Labor has no idea about Australian agriculture or regional communities.”

www.minister.agriculture.gov.au

ends

THE Australian Retailers Association (ARA) Executive Director, Russell Zimmerman, said today retailers welcomed moves to create consistency across Queensland in shop trading hours.

“Retailers have long bemoaned the inconsistent approach to trading hour zones in Queensland and the move by the Queensland Government to create consistency should be welcomed," Mr Zimmerman said.

While not encompassing all the changes some retailers might want, Mr Zimmerman said this was a significant move by the State Government which would grow many businesses and create jobs in a globally competitive environment.

The opt-in options for the regions, and a five year moratorium on the Queensland Industrial Relations Commission (QIRC) making case-by-case decisions, will remove a very expensive legal barrier for retailers as they no longer have to provide funding to change trading hours.

“Like other States, this means that changes over the next five years will need to be legislative. This subsequently allows customers and retailers to have their say through their elected representatives on changes to be made to trading hours,” Mr Zimmerman said.

The ARA has been in consultation with the Queensland Government via its members and Board members.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

ends

THE Institute of Public Accountants (IPA) has renewed its call for the return of the loss carry-back initiative introduced by the Government in 2012 but which only endured a one year life-span.

“The IPA had long advocated for the loss carry-back which gave viable businesses a boost when they needed it the most through more timely tax loss relief,” said IPA chief executive officer, Andrew Conway.

“With the repeal of the Minerals Resource Rent Tax, the loss carry-back became an instant casualty.

“Small businesses operating through companies generally have limited resources to cope with adverse trading conditions and may require short-term liquidity to meet day-to-day liabilities.

“This has always been one of the major shortcomings of the tax loss treatment rules for small corporate businesses; the inability to claw back previously paid taxes and having to wait to earn profits before they could recoup their tax losses.

“We are urging the Government to reintroduce the loss carry-back initiative allowing companies to claw back their tax paid when they incur revenue loss. 

“The provisions that were introduced struck the right balance between allowing losses and limiting exposure to government revenues by placing a quantitative cap in conjunction with a two-year carry-back period,” said Mr Conway.

These recommendations form part of the IPA’s pre-Budget submission. 

For more information go to: http://bit.ly/2jxoU7L

publicaccountants.org.au