The Budget measures around Limited Recourse Borrowing Arrangements and non-arm’s length income are aimed at improving and maintaining the integrity of the superannuation changes that were introduced in the 2016 Federal Budget.
In a further attack on the ‘big banks’, tax advantages from hybrid mismatches are being further restricted. The Government is targeting mismatched hybrid instruments issued by the offshore units of Australian banks and financial institutions.
In an effort to strike a further blow to the cash economy, the Government has extended the TPRS to the cleaning and courier industries. The measures will be introduced from 1 July 2018.
The Federal Government will tighten the accessibility to the small business CGT concessions by limiting the assets eligible for the concessions. It has been proposed that eligibility for the concessions will be denied for assets unrelated to small business from 1 July 2017.
The definition of foreign entities to whom the multi-national anti-avoidance law regime applies has been broadened to include the use of foreign trusts and partnerships in corporate structures.
As part of the Government’s tax integrity measures, $28.2 million will be provided to the ATO in order to target serious and organised crime within the tax system. This extends an existing measure by a further four years to 30 June 2021.