August 2024 Australia
Release schedule
- NextGen Corporate and Forms: 26 August
- Managed Funds: 2 August
Summary
Removal of Temporary Full Expensing Provisions
This change relates to the expiry of the Temporary Full Expensing (TFE) provisions.
Forms impacted:
- Trust Tax Return
- Attribution managed investment trust (AMIT)
- Corporate collective investment vehicle (CCIV)
Removal of Offshore Banking Units Concessional Tax Treatment
This change relates to the expiry of the concessional tax treatment for OBU’s.
Forms impacted:
- International dealings schedule
Small Business Energy Incentive
Businesses with a yearly turnover under $50 million can claim a 20% bonus deduction for eligible assets or energy-efficient improvements.
Forms impacted:
- Trust tax return
- Attribution managed investment trust (AMIT)
- Corporate collective investment vehicle (CCIV)
note
Parliament is currently considering the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023, which hasn't yet been enacted into law.
Introduced New tax return labels for the Small Business Energy Incentive. However, the Australian Taxation Office (ATO) has implemented validation rules that temporarily restrict the use of these labels. We'll remove these restrictions once the Small Business Energy Incentive is officially activated.
Modernization of Trust Administration Systems
Introduced measures to improve the quality, accuracy, and integrity of the annual income tax return information reported by trustees and beneficiaries.
The Changes will include:
- Additional labels in the Trust Statement of Distribution
- F1 Gross capital gains
- F2 Capital losses applied
- F3 CGT discount applied
- F4 Small business discounts applied (this label will record the small business 50% active asset reduction, the small business rollover exemption, and the small business retirement exemption.)
- Introduction of a New Form:
- Trust income schedule (Target-based import capabilities)
Include the Trust Income Schedule with returns where a distribution was received from a trust.
We set a limit of 150 records for the number of entries that can be reported. You'll need to consolidate the additional entries when the records exceed 150.
Managed Funds
Summary
Removal of Temporary Full Expensing Provisions
This change relates to the expiry of the temporary full expensing (TFE) provisions
Forms impacted:
- Trust tax return
- Attribution managed investment trust (AMIT)
- Corporate collective investment vehicle (CCIV)
Updates
Workpaper | Description |
|---|---|
R92 – IDS – p10 – Q18-19 | Warning added when exceeding the Q18 Label L character limit. |
RC – AMIT tax return | The ATO has removed the validation requiring the entry of Previous name of trust . |
RC – AMIT tax return | Removed the truncate setting on amount labels. |
RC – AMIT tax return | We've hidden the Daytime contact number for non-individuals. |
RU – Trust income schedule | Include the Trust income schedule with returns when you receive a distribution from a trust. Target-Based Import Functionality: We're introducing the target-based import functionality for this statement. The Import packs include the necessary files and detailed instructions. |
TTR1 – Beneficiary details | We updated the Q57 rounding in Labels to prevent unnecessary validation triggers, ensuring Q8 Label E, Q11 Label I, and Q12 Label N must equal the total of Q57 . |
AU MANAGED FUND TRUST TAX 2024 Version 1.009
Change | Description |
|---|---|
Inclusion | For trusts using the YTD percentage approach for interim distributions, we have included percentages for the FCTO – discounted gross up and FCTO other gains gross up within the additional section of the Distribution Summary {H1}. |
AU TRUST BENEFICIARY ANNUAL STATEMENTS Version 1.001
No change.
AU UNDERS and OVERS TRUST TAX Version 1.01
No change.
2024 ATO FORMS CHANGES
AMIT Schedule
No change.
AMIT Tax Return
Change | Item | Description |
|---|---|---|
Removed | Q5 | Small business boost. A Small business technology investment boost. |
New | Q5 | Small business bonus deductions. C Small business energy incentive. |
Removed | Q8 | P Are you making a choice to opt out of the temporary full expensing for some or all of your eligible assets? Q Number of assets you are opting out for. R Value of assets you are opting out for. S Temporary Full expensing deductions. T Number of assets you are claiming for. |
Modified | N/A | Updates to the wording in the Declaration. |
CCIV Sub-fund Tax Return
Change | Item | Description |
|---|---|---|
Removed | Q5 | Small business boost. A Small business technology investment boost. |
New | Q5 | Small business bonus deductions. C Small business energy incentive. |
Removed | Q8 | P Are you making a choice to opt out of the temporary full expensing for some or all of your eligible assets? Q Number of assets you are opting out for. R Value of assets you are opting out for. S Temporary Full expensing deductions. T Number of assets you are claiming for. |
Modified | N/A | Updates to the wording in the Declaration. |
Capital Gains Tax (CGT) Schedule
Updated the wording in the Taxpayer’s declaration.
Family Trust Election Revocation or Variation
No change.
International Dealings Schedule
Change | Item | Description |
|---|---|---|
Modified | Q30 | 30a Were the thin Capitalization rules applicable for you? 30b Did you rely on the $2 million threshold exemption? 30c Did you rely on one of the following exemptions in determining the thin capitalization rules that didn't disallow any of your debt deductions? A 90% asset threshold. B Certain special purpose entities. |
New | Q32 | 32a If you entered code 2 or 3 at question 32, Label A, what was your financial entity-type? 32b Did the thin capitalization amendments in the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Act 2024 apply to you in the income year? |
New | Q35 | E Interest income and other amounts covered by paragraph 820-50(3)(b). F Interest income and other amounts covered by paragraph 820-50(3)(b) derived from related non-residents. |
New | Q35a | 35a If you were a general class investor and you entered code 1 at question 32, provide your tax EBITDA information. |
New | Q35b | Q35b A If you were a general class investor code 1 at question 32, did you rely on the group ratio test? |
New | Q35c | 35c A If you entered code 1,2, or 3 at question 32, did you rely on the third-party debt test? |
New | 35d | A Were you a member of your tax consolidated group or a special purpose vehicle subject to section 820-39 of the ITAA 1997? |
Modified | Q36 | Were you an Authorized deposit taking institution (ADI) for the income year? |
Modified | Q37 | Were you a non-ADI and non-financial entity for the income year? |
New | Q37a | A Were you an investing financial entity (non-ADI) for the income year? |
New | Q38a | A If you were an ADI, did you rely on the arm’s length capital test? |
New | Q39a | A Did you restructure or replace an arrangement during the income year, which would have satisfied the conditions in subsection 820-423A(2) or (5), if the arrangement was still in place on or after 1 July 2024? |
Removed | Q41 A - N | A – Were you an offshore banking unit (OBU) or the head company of a consolidated group included on the OBU? |
Modified | N/A | Updated the wording in the Taxpayer’s declaration |
Interposed Entity Election or Revocation
No change.
Trust Tax Return
Change | Item | Description |
|---|---|---|
Removed | Q50 | P Are you making a choice to opt out of temporary full expensing for some or all of your eligible assets? Q Number of assets you are opting out for. R Value of assets you are opting out for. S Temporary full expensing deductions. T Number of assets you are claiming for. |
Removed | Q52 | Small business boost. B small business technology investment boost. |
New | Q52 | Small business bonus deductions. B Small business energy incentive. |
New | Q58 | Beneficiary. F1 Gross capital gains. F2 Capital losses applied. F3 CGT discount applied. F4 CGT small business concessions applied. F5 NCMI capital gains (formally F1). F6 Excluded from NCMI capital gains (formally F2). The corresponding labels within the ATO Capital Gains Tax (CGT) schedule link the total amounts for labels F1, F2, and F3. |
Modified | Q58 | Income to which no beneficiary is presently entitled and has no indefeasible vested interest, along with the trustee’s share of credit for tax deducted. F5 NCMI capital gains (formally F1). F6 Excluded from NCMI capital gains (formally F2). |
NextGen Corporate
ONESOURCE Content – NextGen Corporate - Release Notes V1.6
Updates
Workpaper | Description |
|---|---|
ATO Forms | We made an update to all ATO forms work papers to stop the wizard prompting to save a calculation after completing validation and attempting to Efile. |
T6A – Tax account reconciliation Consolidated Company Tax | Formula updated – Intercompany - tax sharing (UIG 1052) section for Adjusted group total Dr(Cr) - Closing balance per General ledger. |
A1 – Group losses – all Consolidated Company Tax | Updated the formula for Transferred losses – capital. |
T4E – Recognized amounts brought forward Consolidated Company Tax | DTA/DTL indicator formula updated to link to the Opening balance indicator from T3. |
T3 – Temporary difference movement T4 – Deferred tax movement recognised T3H - Equity T3I – Intercompany /other T3J - Unrecognised – current period Consolidated Company Tax | Updated T3 and T4 to ensure all line items are displaying correctly from underlying calculations. We've changed the work papers from an insertable sheet to always display to ensure correct dataflow for T3 - Temporary difference movement. |
T6 – Tax account summary and T6A tax account reconciliation T6X – Tax account summary under/over | We've updated these workpapers to correct opening balance formulas for DTA/DTL columns for the "opening balance adjustments” line item. The "Intercompany UIG 1052” column was also updated to include the "Opening balance adjustments / Intercompany settlement” amount from T6A.We've made corresponding consolidation adjustments to T6, T6A and T6X. Updated some additional fields in T6X – Difference column – for missing formulas. A new line item was added to the Deferred tax section of T6A to include "Prior period opening balance adjustment" . |
A – Statement of taxable income Company Tax | We've hidden the effective tax adjustment column. |
RF$CONFIG RFU – Roll forward transition – asset movement/reversing Company Tax | Added a new roll forward transition sheet – RFU - for the BU workpaper. This is to be used for the roll forward of Liability workpapers BE and BF in the Company tax – Classic template. When adding or updating the BU sheets both the RFU and BU sheet need to be inserted for Liability line items. For existing/upgraded calculations you may be required to remove the existing BU workpaper for the RFU sheet to work correctly. This will ensure the new signage flip in BU for the Liability line items is automated. |
T1 – Current tax Comparative tax rate Company Tax | Updated the comparative tax rate and difference formulas in T1. |
RG – International dealings schedule | Update to the following validation that was incorrectly displaying in certain scenarios “Q13 Label A should be answered ' Yes ' as 'Tangible Property' and 'Intangible Property' amounts have been entered for Q13” |
D1 – Various adjustments – permanent Company Tax | Work paper was changed from an insertable sheet to always display. |
DE – Non-deductible expenses Company Tax | Updated the workpaper for additional Income Statement line items to use the "Included in CGT cost base" column with CB6-Capitalised expenditure. The following line items now have this available: Capital items expensed <$1,000 Capital items expensed >$1,000 Computer expenses Consulting expenses Legal fees Other expenses - domestic Repairs and maintenance Commission expenses Contractors Restructure expenses |
T3 – Temporary difference movement Company Tax | Updated the Adjustment column formula for Transferred losses – revenue and transferred losses – capital to link to the correct opening balance amounts form the A6-Transferred losses workpaper. |