On 16 August 2019, CA ANZ lodged a submission for the Senate inquiry into Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019 [Provisions].
We commented on the following schedules to the Bill:
- Schedule 3 - amends the Income Tax Assessment Act 1997 (ITAA 1997) by introducing a new section 26-102 to deny deductions for losses or outgoings incurred that relate to holding vacant land except for land which is used or held available for use in carrying on a business
- Schedule 5 - amends the Taxation Administration Act 1953 (TAA 1953) to allow taxation officers to disclose the business tax debt information of a taxpayer to credit reporting bureaus when certain conditions and safeguards are satisfied
- Schedule 6 - amends the TAA 1953 to confer on the Commissioner of Taxation functions and powers to develop and/or administer a framework or system for electronic invoicing
- Schedule 7 – amends the Superannuation Guarantee (Administration) Act 1992 to ensure employers cannot use salary sacrifice amounts to satisfy Super Guarantee obligations.
The submission mainly addresses issues with Schedule 3 dealing with limiting deductions for holding costs relating to vacant land. We recommend various amendments including expanding the ‘carrying on a business’ exception to the limit and amendments be made to section 110-25 of the ITAA 1997 so that where land holding costs are denied deduction under section 26-102, these costs are able to be included in the cost base of the land regardless of when the land was acquired.
We broadly support the measures contained in Schedules 5, 6 and 7.