ATO releases synthesised text of tax treaty with China
The ATO has released the synthesised text of Australia’s double taxation agreement (DTA) with China to now include modifications made to by the Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting (MLI). These modifications include changes to the dual resident article, which now requires that where a company is a dual resident, “the competent authorities of both contracting states shall endeavour to determine by mutual agreement the contracting State of which such person shall be deemed to be a resident for the purposes of the Agreement, having regard to its place of effective management, the place where it is incorporated or otherwise constituted and any other relevant factors [and that] in the absence of such agreement, such person shall not be entitled to any relief or exemption from tax provided by the Agreement”. Changes have also been made to the “Alienation or Real property” article to extend the application of article to the disposal of interests in partnerships and trusts (in addition to current application to interests in “land rich” companies). These MLI modifications apply from 1 January 2023.


Administrative Tribunal Bills pass with amendments
The Administrative Review Tribunal Bill 2024 and related Bills were passed by Parliament on 28 May 2024 with amendments which included: clarification of the circumstances where proceedings can be continued where an applicant has died or is bankrupt or insolvent; and the provision for various social services decisions to be entitled to a second Tribunal review.


ATO information on family trust and interposed entity elections
The ATO has released information on key points to be aware of regarding family trust elections (FTE) and interposed entity elections (IEE). Among other things, the ATO emphasised that FTEs and IEEs shouldn’t be ‘set and forget’ by trustees or their tax professionals and that they need to be front of mind when administering a client’s tax affairs, especially distribution decisions, as these may result in FTDT liabilities. As a result, the ATO encourages tax professionals to consider the following on an annual basis: if the election is needed and whether it can, and should be, revoked; whether the specified individual remains the most suitable person and if not, whether the specified individual can, and should be varied; and the timeframes to vary or revoke elections.