SBR Tax Time Changes Presented by Mick Ferris E-Commerce Service Delivery Australian Taxation Office July 2015

SBR Update EVTE Response Times ELS Position SBR New Services SBR service changes (release candidates) BDE Update BDE service changes (release candidates) Presentation contents

SBR Update ELS2SBR – Moving from the ELS tag format to an eBMS/XBRL implementation, supported through the SBR standards (taxonomy/documentation/processes) SBR 1 and 2 now supports AusKey in the Cloud. Introduction of client update and individual tax return functionality for SBR 2 Performance increases for the External Vendor Test Environment (EVTE)

EVTE Response times

ELS Position From TT16 ELS will no longer be available. Take-On will be switched off at the 30/06/2016 SBR2 currently supports prior year lodgements made in the ELS tag format submitted via an eBMS wrapper. (this MIG is currently available on the SBR site) Prior year returns in the ELS format will be accepted via eBMS until decommissioning in 2018

TT2016 SBR New Services TRTAMI – Trust Return Attribution Managed Investments The legislative change will introduce a new return for Attribution Managed Investment Trusts (AMIT) which will have new reporting requirements. This new measure will provide greater flexibility and reduced compliance costs for AMITs. TSAMI – Trust Schedule for Attribute Managed Investment Trusts This service provides the ability for an AMIT to report on additional amount relevant to those trusts which have not been captured in the primary TRTAMI service. SMCDS – Sales through Merchant and Debit Credit Services This service will enable business where they provide electronic transaction services to generate sales income to report on those transactions annually to the ATO.

CGLS Release Candidates RC SBIT - Abolish FHSA RC SBIT - Immediate deduction for small business start up expense* Add –2 data elements to support the change in First Home Saver Accounts.(RC013) Update –Minor updates to instructions/guidance to explain in what circumstances a tax payer can claim ‘start-up’ expenses. (RC038) Delete –2 data elements that contained the acronym ‘FHSA’ in the data elements property name. (RC013) *Initial analysis pending detailed requirements

CGTS Release Candidates RC PGH - CGT treatment of Earnout agreement* Add –2 data elements Update – Minor updates to instructions/guidance Delete –N/A *Initial analysis pending detailed requirements

CTR Release Candidates RC PGI - Exploration Development Incentive RC PGI - Thin capitalisation and Foreign dividends RC SBIT - Abolish FHSA RC PGI - Company Tax Rate Cut RC PGI - IMR element 3* RC PGI - Combating Multinational tax avoidance - Stronger Shortfall* RC PGI - TOFA Tax Return Labels* Add – 2 data elements (1 x Company tax rate <$2M indicator (RC022) and 1 x IMR amount (RC028)) Update –4 data elements update where reporting definition or guidance references FHSA or unlisted country. Delete – 8 data elements (1 x Foreign income – Unlisted country, 3 x FHSA, and 4 TOFA tax return labels) *Initial analysis pending detailed requirements

Client Update CU Services: CUADDR CUDTL CUEC CUFI CUMASADD CUMASCANCEL CUREL CURNN Release Candidates RC SBIT - Changes to Gender Identifiers Delete –1 data element from each of the above CU service’s. *Initial analysis pending detailed requirements

FBT Release Candidates RC PGH - Temporary Budget Repair Levy - FBT rate change Add – N/A Update –Update references and calculations to reflect the increase from 47% to 49% Delete – N/A

FITR Release Candidates RC PGI - Exploration Development Incentive RC PGI - Thin capitalisation and Foreign dividend RC PGI - TOFA Tax Return Label* Add – 1 data element to support Exploration Development Update –N/A Delete –3 data elements (1 x Section 404 country being removed (RC009) and 2 x TOFA Labels (RC039)) *Initial analysis pending detailed requirements

IITR Release Candidates RC SBIT - Net Medical Expenses Phase Out RC PGI - Exploration Development Incentive RC SBIT - Changes to Gender Identifiers RC SBIT - Zone tax offset* RC SBIT - Changes to tax residency rules for temporary working holiday makers* RC SBIT - Simplify car expense deductions * RC SBIT - Tax discount for unincorporated business income - Small business income tax offset* RC SBIT - Immediate deduction for small business start up expenses* Add –2 data elements (RC037) Update –4 data elements(1 x RC002, 1 x RC005, 2 x RC038) Delete –1 (RC002) 1 (RC012) *Initial analysis pending detailed requirements

LS Release Candidates RC SBIT - Abolish FHSA RC SBIT - Immediate deduction for small business start up expense* Add –2 data elements to support the change in First Home Saver Accounts. Update –Minor updates to instructions/guidance to explain in what circumstances a tax payer can claim ‘start-up’ expenses. Delete –2 data elements that contained the acronym ‘FHSA’ in the data elements property name. *Initial analysis pending detailed requirements

PTR Release Candidates RC PGI - Exploration Development Incentive RC PGI - Thin capitalisation and Foreign dividend RC PGI - IMR element 3* RC SBIT - Tax discount for unincorporated business income - Small business income tax offset* RC SBIT - Immediate deduction for small business start up expenses* RC PGI - TOFA Tax Return Labels* Add –3 data elements (1x RC005, 1 x RC028 and 1 x RC037) Update – Minor updates to instructions/guidance to explain in what circumstances a tax payer can claim ‘start-up’ expenses. (RC038) Delete –3 data elements (1 x RC009 and 1 x RC039) *Initial analysis pending detailed requirements

SMSFAR Release Candidates RC PGI - Exploration Development Incentive RC SBIT - Abolish FHSA RC PGI - TOFA Tax Return Labels* Add –1 data element (RC005) Update –1 data element reporting definition/guidance (RC013) Delete –2 data elements (RC039)

TFND Release Candidates RC CAS - Student Start up Loan Add –1 data element (RC003) Update –N/A Delete –N/A

TPAR Release Candidates RC SBIT - Reporting of Taxable Government Grants and Specified Payments Add –19 data elements (RC014) to include Payment and Grant information. Update –N/A Delete –N/A New Payment data elements. ABN Name Address Total gross amount paid Total GST Bank account details (BSB + Account) Phone number address Statement by supplier indicator New Grant data elements. ABN Name Address Total gross amount paid Total GST Name of grant/program Date of payment Bank account details (BSB + Account) Phone number address

TRT Release Candidates RC PGI - Exploration Development Incentive RC PGI - Thin capitalisation and Foreign dividend RC PGI - IMR element 3* RC SBIT - Tax discount for unincorporated business income - Small business income tax offset* RC PGI - TOFA Tax Return Label* Add –3 data elements (1 x RC005, 1 x RC028, RC037) Update –N/A Delete –3 data element (RC039) *Initial analysis pending detailed requirements

More Information SIPO – Access to draft documentation SBR – Access to final documentation Lets Talk –Software developer community

BDE Update PHIR, TPAR, PAYG, AIIR Standardising and reducing the business rules to make it easier for Clients to lodge TT15 Enhancements Direct reporting of Private Health Insurance Data –Allowed the Private Health Insurers to submit directly to the ATO rather than submitting to Medicare Foreign Account Tax Compliance Act (FATCA) AFI to ATO –New form for BDE, information sent by the AFI’s regarding American citizens working in Australia. –The ATO would send this information to the IRS. (delivered in September 2015) Trade Support Loan –Validation changes Welfare Data Quality –Existed as a BDE Adhoc request, now included in the BDE framework

BDE Service Changes TT16 Enhancements Student Start Up loan Exploration Development Incentives Third party data matching (ASIC & Share reg) AIIR MIT measures Employee Scheme Share (ESS) Share Individuals data with New Zealand TPAR reporting government grants Sales of Merchant credit and debit Real Property Sales Reporting Foreign Resident Withholding –Unauthenticated Participated form –Vendor Variation Form –Purchaser Remittance form Austrac Changes to Gender Change (7 forms)

Questions?