Legislation
- Super contributions on paid parental leave
On 1 October 2024, the Paid Parental Leave Amendment Bill 2024 received Royal Assent. The Bill amends the Paid Parental Leave Act 2010 by adding superannuation contributions to paid parental leave under the Commonwealth-funded Paid Parental Leave Scheme for Parental Leave Pay recipients. This applies to children born on or after 1 July 2025.
- Amended Tax Practitioner Code of Conduct
The Assistant Treasurer has made a legislative instrument that clarifies new components of the Code of Professional Conduct for tax practitioners, specifically the obligations related to misleading statements and keeping clients updated, which were introduced under the Tax Agent Services Determination 2024. The instrument amends sections 15 and 45 of the Determination and repeals and replaces section 15(2). The amendments clarify:
- The obligation applies to statements made by the practitioner or where the practitioner allowed someone else to make the statement.
- The obligation applies where the practitioner has appropriate grounds to believe that the statement was misleading due to a failure by someone involved in making the statement to take care, or because someone engaged in making the statement disregarded the operation of a taxation law intentionally or was unaware of it.
- The factors that determine what time duration is considered appropriate for a tax practitioner or a client to provide an explanation or to take action to correct a misleading statement.
- A practitioner’s obligations where a client does not act to correct the misleading statement after receiving suggestions from the practitioner within a specified time period.
- The obligations do not apply where taking action would pose a risk to the practitioner’s personal safety, or the safety of their staff or family.
Reforms to M&A Rules
The Treasury Laws Amendment Bill 2024 was introduced into Parliament on 10 October 2024. The bill introduces reforms to Australia’s merger rules to promote competition, as announced in April 2024. Under the proposed laws, there will be a notification system for mergers above specific thresholds, which must be approved by the Australian Competition and Consumer Commission (ACCC).
There will be three thresholds:
- Any merger will be reviewed if the Australian turnover of the combined businesses is over $200 million, and either the assets or business being obtained has an Australian turnover of over $50 million or a global transaction value of over $250 million.
- The ACCC will review mergers where a large business (with over $500 million in Australian turnover) acquires a smaller business or assets (over $10 million).
- It will also examine mergers involving a combined Australian turnover of over $200 million if the total turnover from acquisitions in similar goods or services exceeds $50 million in three years, or $10 million if a very large business is involved.
AML reforms extend obligations to professionals
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 has passed the House and is now in the Senate. It extends the AML/CTF regime to high-risk services offered by real estate professionals and certain service providers, such as lawyers and accountants, which are globally recognised as vulnerable to money laundering. These services will be regulated under the AML/CTF framework.
Tax whistleblower protection regulation
New Treasury Regulations will amend the Taxation Administration Regulations 2017 to allow confidential whistleblower information to be shared with the Inspector-General of Taxation (IGT), the Tax Practitioners Board (TPB), and the Australian Charities and Not-for-profits Commission (ACNC). These changes enhance protections for whistleblowers making eligible disclosures to the ATO and others under the Taxation Administration Act 1953. The new rules take effect on 12 October 2024.