Recommendation (as summarised
on page xii of Banks report) by Govt? Agreed Summary of Government Response
130 Status as at June 2007
5.29 Limit FBT reporting to
remuneration benefits See 5.30
5.30 Increase the FBT reporting
threshold In part The Government had previously agreed to increase the reportable fringe benefits exclusion threshold from $1000 to $2000 from 1 April 2007. The Govt agreed in principle to a reporting exclusion for pooled or shared vehicles.
An increase in the reporting threshold was included in Tax Laws Amendment (2006
Measures No. 5) Act, 2006 which received Royal Assent on 23 October 2006.
Regulations relating to pooled and shared vehicles commenced on 1 April 2007. 5.31 Increase the FBT minor
benefits threshold
Yes The minor fringe benefits exemption threshold was increased from $100 to $300 from 1 April 2007.
Legislation giving effect to this change was contained in Tax Laws Amendment (2006
Measures No. 5) Act 2006 which received Royal
Assent on 23 October 2006. 5.32 Clarify the FBT minor benefits
threshold exemption guidelines
Yes ATO was to review its existing guidelines and provide further guidance. Draft ruling TR 2007/D6 was issued on 27 June 2007.
Final ruling Pending. 5.33 Reduce compliance cost for
FBT on road tolls
Yes The Government had previously agreed, and the ATO is reviewing
administrative solutions which reduce the compliance costs of calculating FBT on road tolls and better publicise the work it has already done.
5.34 Review to investigate reducing FBT and GST interaction and FBT treatment of car parking
No Interaction between FBT and GST is appropriate. Standard valuation method for car parking would increase compliance costs and raise equity issues.
Page 1
11
Scopi ng study of small bus ine ss tax complia nce costs Page 1 12
Banks taskforce — tax regulation measures and Government response (continued) Recommendation (as summarised
on page xii of Banks report)
Agreed by Govt?
Summary of Government Response Status as at June 2007 5.35 Consider allowing optional
group FBT returns No Might increase compliance costs. May consider non-legislative means to provide this option in some circumstances through. 5.36 Allow employers the same
extension to lodge FBT returns as tax agents
No Tax agent extension recognises their role in preparing for many clients, and the ATO has power to grant extensions in appropriate cases.
5.37 Provide a simplified accounting method for restaurants, cafes and caterers
Yes The ATO would develop a simplified accounting method for small restaurants, cafes and caterers which are unable to use the current ‘snapshot method’, taking account of the announcement to align the eligibility threshold for various small business measures.
A New Tax System (Goods and Services Tax) Simplified GST Accounting Methods
Determination 2006/1 came into effect on 1 October 2006. A threshold of $2 million was used.
5.38 Increase the compulsory GST registration threshold
Yes, in principle
The Government would consider the proposal further in the context of the change to the definition of GST announced in the 2006-07 Budget.
The Government announced in the 2007-08 Budget that the threshold for compulsory GST registration would increase from $50,000 to $75,000 from 1 July 2007.
5.39 Promote BAS policy for capital items worth $1000 or less
Yes Previously agreed. The ATO would promote its policy to allow items with a cost of less than $1000 to be reported on BASs as non-capital. This applies to acquisitions that would otherwise have to be recorded at item G10 on a BAS, if the business does not record capital acquisitions separately and expects annual turnover to be less than $1 million. Revised GST Activity Statement instructions, published July 2006, contain advice.
No further action required.
5.40 Examine providing brief explanatory information on the BAS.
No ATO advised there is little scope to add meaningful information on the one-page BAS form, but it would examine means of improving information to taxpayers. 5.41 Incorporate the Medicare Levy
into personal income tax rates
No 5.42 Increase the PAYG threshold
for quarterly remitters
No While it may have reduced some compliance costs, it would result in substantial revenue deferral.
Appe ndix 2: Banks’ T askforce — tax regulati o n recomme nda tions Page 1 13
Banks taskforce — tax regulation measures and Government response (continued) Recommendation (as summarised
on page xii of Banks report)
Agreed by Govt?
Summary of Government Response Status as at June 2007 5.43 Align and rationalise definitions
in the tax law including ‘small business’, ‘employee’, ‘salary and wages’, and ‘associate’
Yes, in
principle The Government agreed in principle to align definitions in the tax law. The Small Business Framework, which began on 1 July 2007, uses a $2 million turnover threshold to access a range of small business tax concessions.
5.44 Align definitions of ‘employee’ and ‘contractor’
No This would reduce Superannuation Guarantee coverage and possibly compliance.
5.45 Harmonise payroll tax administration across States and Territories
Yes The Government would support moves by the States and Territories to harmonise these through COAG.
5.46 Harmonise stamp duty administration across States and Territories
Yes Agreement reached between Government and States on a schedule for the abolition of the majority of taxes listed for review in the IGA, over four years from 1 July 2006.
5.47 Standardise tax administration across jurisdictions
Yes Commonwealth Government would work within COAG and the Ministerial
Council to harmonise administration and tax base of like taxes across jurisdictions.
5.48 Issues for consideration by Board of Taxation
Yes The five issues were referred to the Board of Taxation. The five issues are being considered within the