Often, a foreign investor must seek the Australian Treasurer’s approval to directly or indirectly invest in Australia. The application is made to the Foreign Investment Review Board (FIRB), which will consult with the Australian Taxation Office (ATO) on the tax impact of the investment. In this insight, our tax experts discuss the tax conditions that are imposed by the ATO.
Australian tax rules relating to cryptoassets remain in their infancy, comprising largely of antiquated rules for fiat currency transactions, with impractical attempts at guidance from revenue authorities. This practical guide summarises the Australian tax issues for some typical cryptoasset transactions. In this innovative sector, no two transactions are the same.
After much anticipation by the exploration industry, the Government has introduced a bill for the new Junior Minerals Exploration Incentive. The JMEI allows greenfields minerals explorers to attract new capital investment by passing on a portion of their exploration deductions to the investors in the form of a tax offset. However, the devil is in the detail, and explorers (and investors) may find that the program’s strict timeframes, yearly requirements and caps limit the program’s usefulness.
As we reported back in May 2017, the Treasurer announced measures to assist with housing affordability in the 2017/2018 Federal Budget. Draft legislation has recently been released for consultation, but with a couple of kickers, including the denial of certain tax benefits to investors in trusts that would otherwise qualify as managed investment trusts.
The Prime Minister’s announcement of the Junior Mineral Exploration Tax Credit on 2 September 2017 and an increase in sophisticated investor activity have provided further impetus to the generally positive junior energy and resources market. In light of this, we have put together some brief considerations for junior miners this reporting season.