Treasury Laws Amendment (2017 Measures No. 1) Act 2017

Overview

The Treasury Laws Amendment (2017 Measures No. 1) Act 2017, enacted by the Parliament of Australia and assented to on 4 April 2017, serves to amend various pieces of legislation related to taxation and related purposes. The primary aim of this Act is to refine and update the legal framework surrounding taxation, particularly in relation to innovation measures and the disclosure of information by the Australian Securities and Investments Commission (ASIC). This legislative initiative is intended to address gaps and issues in the existing tax laws, ensuring they remain effective and aligned with current economic and regulatory needs. The Act makes specific amendments to the Income Tax Assessment Act 1997 and the Australian Securities and Investments Commission Act 2001. For instance, it introduces modifications to innovation measures, such as clarifying the definition of certain tax terms and adjusting the application of capital gains tax provisions. Additionally, the Act updates the Australian Securities and Investments Commission Act 2001 to include the Commissioner of Taxation as a party to whom ASIC can disclose information, enhancing the coordination between tax and securities regulation. These amendments are designed to foster a more robust and integrated financial and tax regulatory environment.

Scope and Application

The Treasury Laws Amendment (2017 Measures No. 1) Act 2017 is an Act of the Parliament of Australia that makes amendments to various existing laws, including the Income Tax Assessment Act 1997 and the Australian Securities and Investments Commission Act 2001, to bring about changes in taxation and related areas. The Act applies to entities and individuals affected by the changes in taxation measures, particularly those concerning capital gains tax and the treatment of capital proceeds, as well as to those subject to the provisions amended by the Australian Securities and Investments Commission Act 2001. Its jurisdictional reach is national, as it pertains to Commonwealth laws. The Act includes specific commencement dates for different sections and schedules, with certain amendments applying to events and payments from specified dates. Notably, the amendments to the Income Tax Assessment Act 1997 concerning capital gains tax apply to payments made from 1 July 2016, and to capital gains tax events from 1 July 2017. The amendments to the Australian Securities and Investments Commission Act 2001 apply to disclosures made after the commencement of the relevant schedule. The Act does not explicitly mention any exclusions or thresholds within the provided excerpt, but it allows for further specification through subordinate instruments.

Key Provisions

The Treasury Laws Amendment (2017 Measures No. 1) Act 2017 (C2017A00026) primarily makes amendments to two key pieces of legislation: the Income Tax Assessment Act 1997 and the Australian Securities and Investments Commission Act 2001. The amendments aim to adjust tax measures and expand the scope of entities that can be authorised to obtain information under the Australian Securities and Investments Commission Act 2001. Section 1 of the Act identifies it as the Treasury Laws Amendment (2017 Measures No. 1) Act 2017, and section 2 provides the commencement details for different parts of the Act. The amendments to the Income Tax Assessment Act 1997 (Schedule 1) and the Australian Securities and Investments Commission Act 2001 (Schedule 2) are specified in the respective schedules. The Act imposes several obligations and requirements on the parties it governs. In the context of the Income Tax Assessment Act 1997, the amendments alter the definition and scope of certain capital gains tax provisions. For example, the definition of "ESVCLP" is replaced with "entity because of section 51-52 or" (Schedule 1, item 1). Additionally, the term "proceeds" is replaced with "capital proceeds" in multiple instances (Schedule 1, items 2 to 4). These changes are intended to clarify and refine the tax treatment of certain transactions and events, ensuring that taxpayers comply with the updated definitions and requirements. Furthermore, the amendments specify that certain changes apply to payments made or capital gains tax events occurring on or after specific dates (Schedule 1, items 1(2) and 4(2)). In relation to the Australian Securities and Investments Commission Act 2001, the Act extends the list of authorised persons who can obtain information under subsection 127(2A) to include the Commissioner of Taxation (Schedule 2, item 1). This expansion of authorised entities is intended to enhance the oversight and enforcement capabilities of the Australian Securities and Investments Commission (ASIC) by allowing the Commissioner of Taxation to access relevant information. The amendment applies to disclosures made on or after the commencement of Schedule 2, regardless of when ASIC obtained the information (Schedule 2, item 302). Breaches of the provisions set out in the Act can result in both civil and criminal consequences. While the Act does not explicitly state specific offences or penalties, violations of tax laws or unauthorised access to information can lead to legal action. Under the Income Tax Assessment Act 1997, non-compliance with tax obligations can result in penalties such as fines and interest on unpaid taxes. In the case of the Australian Securities and Investments Commission Act 2001, unauthorised disclosure or misuse of information can lead to criminal charges, with potential penalties including fines and imprisonment. The maximum penalties for these offences would depend on the specific nature and severity of the breach, as outlined in the respective Acts.