✦ Plain-English Summary

Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019

What it does

This bill closes seven different tax loopholes and tightens tax rules across several areas. The changes target: cheap loans given by tax-exempt organisations (like charities), property developers using partnerships to dodge capital gains tax, people claiming deductions on vacant land, trusts moving money around to avoid tax, salary sacrifice arrangements that dodge superannuation contributions, and it also introduces electronic invoicing requirements and makes it easier to track unpaid business tax debts.

Why it matters

These are relatively technical changes designed to stop wealthy individuals and businesses from using complex structures to reduce their tax bills. The cumulative effect should raise more tax revenue without changing how everyday income tax works for regular workers.

Key details

• Who's affected: Property investors, business owners using partnerships, people with vacant land, high-income earners using salary sacrifice, and tax-exempt organisations making large loans
• When it starts: Most changes kick in from the next quarter (1 January, April, July or October) after the bill becomes law; rules on business tax debt disclosure and salary sacrifice start the day after it's passed
• What changes: You can no longer claim deductions for vacant land held purely as an investment, and trusts can't distribute losses to dodge tax liability

Official Description

Amends the: Income Tax Assessment Act 1936 to: remove a tax deduction which arises upon repayment of principal under a concessional loan by certain privatised entities; Income Tax Assessment Act 1997 to: introduce a new additional basic condition in relation to partnerships for the small business capital gains tax concessions; and limit tax deductions for losses or outgoings incurred that relate to holding vacant land; Income Tax Assessment Act 1936 and Taxation Administration Act 1953 to extend to family trusts the anti-avoidance rules that apply to other closely held trusts that undertake circular trust distributions; Taxation Administration Act 1953 to: allow taxation officers to disclose the business tax debt information of a taxpayer to credit reporting bureaus certain circumstances; and enable the Australian Taxation Office to develop and/or administer a framework or system for electronic invoicing; and Superannuation Guarantee (Administration) Act 1992 to ensure that an individual’s salary sacrifice contributions cannot be used to reduce an employer’s minimum superannuation guarantee contributions.

Committee Referrals

Senate Economics Legislation Committee; Senate Standing Committee for the Scrutiny of Bills

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.