The Australian Tax Office and the company tax rate for small businesses – what’s all the fuss about?

The Australian Tax Office and the company tax rate for small businesses – what’s all the fuss about?

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A key part of the Government’s Budget package last year was a reduction in company tax rates for small businesses. The Australian Tax Office (ATO) recently interpreted “small business” to include companies that simply generate ‘passive income’ from investments. The Government has responded that it did not have these types of entity in mind when it decided to introduce tax cuts for small businesses. By Dr. Drew Donnelly, Compliance Quarter Today we summarise the disagreement between the ATO and the Government over the tax rate. Budget 2016: The tax enterprise plan In Budget 2016, the Government unveiled a ten-year enterprise tax plan aimed at supporting jobs and economic growth, particularly through tax relief for small businesses. One aspect of this plan was an incremental reduction in the company tax rate…
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The Crowd-funding Act and changes to the Australian Market Licence regime: The latest ASIC consultation paper

The Crowd-funding Act and changes to the Australian Market Licence regime: The latest ASIC consultation paper

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Most businesses that facilitate the trading of assets or financial instruments (‘market venues’) are required to hold an Australian Market Licence (AML), and are subject to an accompanying regulatory regime. The Corporations Amendment (Crowd-sourced Funding) Act 2017 (the CSF Act), passed into law in March, creates a bespoke regulatory regime for crowd-sourced funding. At the same time, the CSF Act amends the Corporations Act 2001 so that some ‘lesser risk’ market venues can be exempted from some obligations under the AML regulatory regime. By Dr. Drew Donnelly, Compliance Quarter On 20 July, The Australian Securities & Investments Commission (ASIC) released a consultation paper an exemption framework and inviting comment. So, what exactly is ASIC proposing? The CSF Act The key purpose of the CSF Act is to allow small unlisted…
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Are You Producing The Correct Type Of Product Disclosure Statement?

Are You Producing The Correct Type Of Product Disclosure Statement?

Financial Services
Last week, the Australian Securities & Investments Commission (ASIC) announced that it is extending an existing form of regulatory relief for three types of financial product: multi-funds, superannuation platforms and hedge funds. Businesses which offer these financial products will continue to be exempt from the requirement to produce shorter product disclosure statements (shorter PDSs) until (at least) June 2018. By Dr. Drew Donnelly, Compliance Quarter As a key tool for protecting consumers, it is essential that any business offering financial products is complying with product disclosure requirements. Today we ask: what is a standard PDS, what is a shorter PDS, which businesses are required to produce the shorter PDS, and which are exempt? The standard PDS Recently, we looked at new client money protections for retail clients investing in off-the-counter…
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The rules for temporary work visas changed (again) on 1 July: An update

The rules for temporary work visas changed (again) on 1 July: An update

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In May, we discussed the Government’s announcement that there would be significant changes to Temporary Work (Skilled) (subclass 457) visas, to be implemented over the next year or so. These changes were subject to robust feedback from industry, particularly with regard to the new occupation lists. In light of this, on 1 July the Government announced some further ‘tweaks’ to the new temporary visa regime. By Dr. Drew Donnelly, Compliance Quarter Today’s article is an update on these new requirements as well as a reminder of other aspects of the new regime that came into force on July 1. Industry feedback on the occupation lists The changes announced in April created two new ‘streams’ for the subclass 457 visa. From that point, subclass 457 visas would only be approved for…
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Expected Credit Loss: The New Way Banks Must Recognise Shifting Credit Risk

Expected Credit Loss: The New Way Banks Must Recognise Shifting Credit Risk

Financial Services
In OTC derivatives trading in Australia – are you playing by the rules? we looked at how new regulatory requirements have been introduced for some financial products (in that case, over-the-counter (OTC) derivatives), in the wake of the global financial crisis. New reporting rules and ‘mandatory clearing’ are intended to make the risks in these trades more transparent. By Dr. Drew Donnelly, Compliance Quarter Similarly, today’s topic concerns new rules intended to increase the transparency in the risk profile of a bank’s (or any other authorised deposit-taking institution’s), loan portfolio. On July 4, the Australian Prudential Regulation Authority (APRA) issued a letter to all Authorised Deposit-Taking Institutions titled Provisions for Regulatory Purposes and AASB 9 Financial Instruments. It sets out how APRA will apply a new ‘expected credit loss’ model…
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Understanding ‘Markets’ in Australian Competition Law: The Recent High Court Decision

Understanding ‘Markets’ in Australian Competition Law: The Recent High Court Decision

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On 14 June 2017, the High Court of Australia delivered its decision in Air New Zealand Ltd v ACCC; Pt Garuda Indonesia Ltd v ACCC [2017] HCA 21. In this case the court confirmed an expansive definition of what it is to be a ‘market in Australia’, in respect of cartel or price-fixing behaviour. By Dr. Drew Donnelly, Compliance Quarter Today we summarise the decision, and suggest what the implications of this expansive approach to ‘markets’ could be. This is the first part of a two-piece series on developments in competition law in Australia.   Background to the case In 2009 and 2010, the Australian Consumer and Competition Commission (ACCC) commenced proceedings against Air New Zealand and Garuda, claiming that they had engaged in price-fixing for surcharges on air cargo. The…
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