Summary

Amends the: Income Tax Assessment Act 1997 and Tax Laws Amendment (Research and Development) Act 2015 to: permanently increase the research and development (R&D) expenditure threshold from $100 million to $150 million; link the R&D tax offset for refundable R&D tax offset claimants to their corporate tax rates plus a 13.5 percentage point premium; cap the refundability of the R&D tax offset at $4 million per annum; and increase the targeting of the R&D tax incentive to larger R&D entities with high levels of R&D intensity; Income Tax Assessment Act 1997 to extend the concept of tax benefits in the general anti-avoidance rule in Part IVA of the Income Tax Assessment Act 1936 to include the R&D tax offset; Income Tax Assessment Act 1997, Income Tax Rates Act 1986 and Income Tax (Transitional Provisions) Act 1997 to: remake and consolidate provisions relating to clawback of R&D recoupments and feedstock adjustments; introduce a new uniform clawback rule that applies for recoupments, feedstock adjustments and balancing adjustment amounts that are included in an R&D entity’s assessable income; and introduce a new catch-up rule for R&D assets; Taxation Administration Act 1953 to require the Commissioner of Taxation to publish information about the R&D activities of R&D entities claiming the R&D tax offset following a two-year delay; Industry Research and Development Act 1986 (IR&D Act) to: provide for the Board of Innovation and Science Australia (ISA) to make a determination, by notifiable instrument, about how it will exercise its powers and perform its functions and duties; and expand the existing power of the Board of ISA and its committees to delegate some or all of their functions to include certain members of the Australian Public Service; Industry Research and Development Decision-making Principles 2011 to provide that extensions of time granted under the IR&D Act may relate to certain applications; Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 to: require an entity to use the value of the assets, liabilities and equity capital that are used in its financial statements; remove the ability for an entity to revalue its assets specifically for thin capitalisation purposes; and ensure that non-ADI foreign controlled Australian tax consolidated groups and multiple entry consolidated groups that have foreign investments or operations are treated as both outward investing and inward investing entities; A New Tax System (Goods and Services Tax) Act 1999 to require offshore suppliers of rights or options to use commercial accommodation in Australia to include these supplies in working out their GST turnover; A New Tax System (Luxury Car Tax) Act 1999 to remove liability for luxury car tax from cars that are re-imported following service, repair or refurbishment overseas; and Income Tax Assessment Act 1997 and Taxation Administration Act 1953 to: extend the circumstances in which an entity is a significant global entity; and amend the country by country reporting requirements to apply to a subset of significant global entities referred to as country by country reporting entities.