No changes to 'stapled' structures in Budget
The Federal Treasurer, Scott Morrison has declared that the Government will not be dealing with 'stapled' tax structures in next week’s Federal Budget but will be addressing the issue in the future.
However in declaring that 'stapled' structures would not be addressed in the Budget, the Treasurer signalled the likelihood of a significant tightening of arrangements in the area.
“We are determined to ensure that taxpayers are paying the right amount of tax on their activities in Australia,” he said. “Over recent years, a growing number of taxpayers have sought to re-characterise trading income into more favourably taxed passive income. This practice reduces the Australian tax paid by investors and may distort investment decisions and lead to reduced economic efficiency. We are taking steps to eliminate this practice.”
The Government released a consultation paper on the issue and has received numerous submissions from stakeholders, but Morrison described stapled structures as being of “economic significance”.
He said that by not responding to the stapled structures issue in the Budget, the Government would have more time to formulate relevant options that minimise unintended consequences.
Morrison said the consultation period around stapled structures had been extended to the end of July.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
