by Alan Thornhill
Small, but important, tax reforms came before Federal parliament today, ahead of the sweeping reforms that start on Sunday.
Assistant Treasurer David Bradbury issued two statements, to explain.
He said one set of changes affects company directors.
The other introduced a range of improvements, including provisions covering living away from home allowances.
“Tax Laws Amendment (2012 Measures no. 2) Bill was passed by the Senate and includes provisions to strengthen the director penalty regime and protects workers’ superannuation entitlements and amendments to the taxation of financial arrangements and consolidation regimes,” Mr Bradbury said.
“These changes are part of the Government’s continued commitment to maintaining the integrity, equity and fairness of the tax system,” he added.
The Bill will strengthen directors’ obligations to arrange for their companies to meet Pay As You Go (PAYG) withholding and superannuation obligations and help counter phoenix activity.
“The Gillard Government is committed to protecting workers’ entitlements,” said Mr Bradbury.
“This legislation makes it clear that directors have an obligation to ensure that provision is made for the ongoing payment of workers’ superannuation.
“It also ensures that fraudulent directors who use phoenix companies to try and avoid their debts can be held personally liable for their PAYG withholding and superannuation obligations,” Mr Bradbury warned.
In his other statement, Mr Bradbury said: “The Tax Laws Amendment (2012 Measures No. 4) Bill 2012 will reform the tax concession for Living Away From Home allowances and benefits.”
He said it would also, clarify GST rules relating to incapacitated entities.
The major tax reforms, which start on Sunday, include mineral resource rent tax, the carbon tax and raising the income tax threshold, to help people on low to middle incomes.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Thursday December 5
The Dow Jones index fell 24.85 points to 15,889.80
The Federal government and the Greens have reached a deal, under which the cap on Commonwealth debt will be abolished
Qantas warns of another 1,000 job cuts, over the coming year
East Timor’s prime minister says he is shocked by the Australian Government’s decision to authorise raids on a lawyer and whistleblower who were set to provide evidence against Australia in The Hague.
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