9 February 2017

Fairer tax laws to benefit taxpayers

The Government is getting the job done by passing the Tax and Superannuation Laws Amendment (2016 Measures No. 2) Bill 2016 today.

The legislation supports the Government’s commitment to a fairer, simpler and stronger tax system.

“This Bill includes four measures that make things simpler for taxpayers and demonstrate the Government’s commitment to improving the flexibility, fairness and sustainability of the tax system,” Minister O’Dwyer said.

Importantly, the Bill improves income averaging arrangements for farmers. This change recognises that income from primary production can be unpredictable and allows primary producers to re-access the benefits of tax averaging ten income years after opting out, rather than permanently excluding them from the benefits.

“Through this measure, the Government is making the rules more flexible to account for the changing business circumstances of primary producers and to prevent farmers being locked out of the system,” Minister O’Dwyer said.

The Bill also:

  • establishes a Remedial Power for the Commissioner of Taxation, to allow for a more timely resolution of certain unforeseen or unintended outcomes in the taxation and superannuation laws;
  • amends the luxury car tax to provide tax relief to certain public institutions that import or acquire cars for the sole purpose of public display; and
  • makes a number of minor amendments across the tax and superannuation laws to provide certainty for taxpayers. These changes to various tax laws reduce red-tape for individuals, businesses and community organisations.