Previous issues:

The Australian Government has announced that it will introduce a new Resource Super Profits Tax (RSPT) on ALL profitable resource projects in Australia. The tax will apply at the rate of 40%. The RSPT will commence from 1 July 2012 and will be shortly followed by a reduction in the rate of company tax from 30% to 29% in 2013/2014 and a further reduction to 28% after 2014.

Eligible managed investment trusts (MITs) may elect to apply the capital gains tax provisions as the primary code for taxing gains and losses on the disposal of eligible assets (namely a share in a company, non-share equity, a unit in a unit trust, land - including an interest in land and a right to acquire or dispose of any of these assets). The election must be made (in the approved form) during the first year that a trust qualifies as a MIT.

Following the recent actions taken by the Australian Taxation Office to freeze the bank accounts of the private equity firm TPG, the Commissioner of Taxation has released two draft Taxation Determinations. The draft TDs are focused on the private equity sector of the financial investment industry.

On 10 December 2009 exposure draft legislation was released allowing eligible managed investment trusts (MITs) to make an irrevocable election to apply capital gains tax (CGT) provisions as the primary code for taxing gains and losses on the disposal of certain assets - primarily shares, units and land. The draft legislation requires fine tuning but provides much needed certainty for investors and fund managers alike in the Australian financial services industry. Consultations close on 24 December 2009.

The Federal Treasury has released its proposed legislation to clarify the GST liabilities and obligations of insolvency practitioners, as representatives of incapacitated entities.

From 1 July 2009, the general anti avoidance provisions for NSW can apply to artificial, blatant and contrived schemes to reduce or avoid a liability to duty. The new anti avoidance provisions for NSW borrow from existing State taxation legislation across Australia, but also introduce some unique concepts.

The NSW Government 2009 has introduced wholesale changes to NSW mortgage duty which will apply from 1 July 2009 until its abolition date on 1 July 2012.   These changes will affect many of the common security structures that are in use in the market. Financiers and their advisers need to review all files to identify where a stamp duty structure has been used in particular where any further advances of any sort may be made, or NSW collateral securities are taken, after 1 July 2009 (including continuing overdraft facilities, credit card facilities and the like).

The NSW Government announced major changes to the taxation of land holding companies and trusts, expanding the state tax base by replacing the former 'land rich' duty regime with a new 'land holder' duty regime that applies to dealings in land holding entities from 1 July 2009.

On 11 March 2009, the Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2008 passed through the Australian Parliament.  The bill introduces Stages 3 and 4 of the Taxation Of Financial Arrangements (TOFA) reforms and represents a significant change in the income tax treatment of certain financial arrangements.  In this report we consider the implications of TOFA: what it is, who it affects, what financial arrangements are subject to TOFA, when it will TOFA apply and what taxpayers should be doing now.

Australia generally taxes revenue gains or profits, and capital gains, made by non residents where the profits or gains have a sufficient connection with Australia.  This article provides an overview of the key issues for non residents to determine which Australian profits or gains are taxable. It also examines recent decisions of the Australian courts in relation to Australia's taxing rights under treaties, particularly those negotiated before Australia's comprehensive capital gains tax regime was introduced in 1985.

Last year, the G20 leaders at the Washington summit highlighted the need to better align employee incentives to discourage perceived risk-taking. In recent weeks, the new US administration has taken steps to cap the remuneration of executives of troubled financial institutions.