Australia’s government has proposed a new legislation to alleviate the administrative burden of tax processes for small businesses while enhancing capital gains withholding compliance for foreign residents.
The draft legislation, ‘The Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Bill 2024’ in the parliament on 12 September 2024.
The Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Bill 2024 amends the Taxation Administration Act 1953. Key changes include:
- Modifying the foreign resident capital gains withholding payments regime to increase the withholding rate from 12.5% to 15%;
- Remove the threshold before which withholding applies;
- Allow employers to make single touch payroll (STP) declarations for extended periods;
- Provide the Commissioner of Taxation with a power to retain tax refunds for a 90-day period to enable the commissioner to obtain financial institution details for the refund to be paid into;
- Income Tax Assessment Act 1936 and Taxation Administration Act 1953 extend the time in which small or medium business taxpayers may apply to have a tax assessment amended.
