Tax Debt Disclosure & Super Guarantee Loophole Bill Passed

The Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019 has been passed and is pending royal assent. This bill introduces an array of measures that will affect both businesses and individuals.

This bill contains laws in relation to business tax debt disclosure, super guarantee loophole and limiting deductions for vacant land. 

Business Tax Debt Disclosure
The ATO will now be able to disclose tax debt information to credit reporting bureaus. Tax debts will include income tax debts, activity statement debts, superannuation debts, fringe benefits tax debts, penalties and interest charges.

These disclosures could occur for businesses with tax debts that have been overdue for 90 days, valuing at least $100,000, and for entities that do not effectively engage the ATO in regards to tax debt.

Super Guarantee Loophole
This bill will also close a loophole by ensuring that an individual’s salary sacrifice contributions cannot be used to reduce an employer’s minimum super guarantee contributions. It will make it clear that super guarantee is paid on the pre-salary sacrifice amount.

Limiting Deductions for Vacant Land
The bill also includes a measure to limit deductions in relation to vacant land as some taxpayers have claimed deductions for holding vacant land when it is not held for the purpose of producing assessable income.

The bill also introduces a new condition in relation to partnerships for the small business capital gains tax concessions, and will extend anti-avoidance rules for circular trust distributions.

If you would like to discuss this please contact our office.

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