CA ANZ recently had the opportunity to submit on the Taxation (Annual Rates for 2021-22, GST and Remedial Matters) Bill. We have requested an appearance before the Finance and Expenditure Select Committee to discuss our submission.
While this Bill covers a wide range of issues, our principle comments relate to the bright-line test and interest limitation.
CA ANZ has previously expressed its concerns publicly, the measures introduced and proposed do not accord with good public policy design. Despite our concerns, the focus of our submission is to ensure the proposed measures are workable, as simple as possible and that compliance costs are kept to a minimum.
The proposed rules include numerous new terms, concepts, and complex formula calculations. The rules will be difficult to apply and will impose practical compliance obligations and cost.
We have strongly advocated that the main home exclusion to the bright-line test should be changed because we believe it will not achieve the desired outcomes as currently drafted.
Finally, more work is required to ensure rollover relief works in all appropriate situations.