• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/18/2014

Australia - Bank deposit levy, contemporaneous documentation, asset recycling initiative 

June 18: The KPMG member firm in Australia prepared reports on the following developments (read the June 2014 reports by clicking on the hyperlinks provided below):
  • The fate of bank deposit levy - The bank deposit levy was a pre-election Labor policy that had bipartisan support of the Coalition. The goal has been to establish a financial stability fund that could be used in the event that a bank failed. Australia is one of only a few G20 countries that does not have some form of levy-based deposit insurance scheme.

    Read a June 2014 report.

  • Contemporaneous documentation and the tax dispute lifecycle - Early in the tax dispute lifecycle, contemporaneous documentation is used to outline the taxpayer’s position in its response to the ATO’s position paper. Once a dispute reaches the tribunal or court, the outcome will depend on the taxpayer’s ability to defend its position using the relevant information captured at the time of the impugned transaction.

    Read a June 2014 report.

  • Growth and infrastructure - One of the federal government’s key initiatives, announced in the 2014 budget, was an “asset recycling” initiative, designed to leverage new productive infrastructure investment throughout Australia.

    Read a June 2014 report.

  • New South Wales budget 2014-15 - The state budget for NSW was released this week. Given recent performance in the Sydney property market, there has been an additional $1 billion of stamp duty (15%) provided as state government revenue.

    Read a June 2014 report.

  • MIT and foreign pension funds - The managed investment trust (MIT) provisions allow concessional withholding tax rates for certain foreign investors. However, certain foreign pension funds have not been allowed the MIT withholding tax regime. The ATO announced that it would provide administrative relief to these pension funds.

    Read a June 2014 report.

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