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FRCGW Advocacy

The following submissions and advocacy projects are listed in chronological order:
 
LCA / LSNSW / LIV Letter to the Assistant Treasurer
The LIV expressed significant concerns regarding the broad impact of the Foreign Resident Capital Gains Withholding regime on legal practice, the wider business community and consumers, particularly given the limited time period between Royal Assent and commencement. The LCA, Law Society of NSW and LIV raised these concerns in ongoing consultations with the Federal Government and relevant stakeholders. The concerns were summarised in a joint LCA, LIV and LSNSW submission which is available here.
 
Letter from LIV President to members
In May 2016, then-LIV President Steven Sapountsis contacted members about how the LIV is assisting them in adapting to the FRCGW measures. A copy of the letter to members is available here.
 
LIV letter to the Director of New Measures & Government Relations Public Groups and International, ATO
The LIV wrote to the Director of New Measures & Government Relations Public Groups and International of the ATO in relation to a draft Learner Guide by the ATO. The LIV responded to the guide with recommendations for further clarifications and expressed concerns that specific guidance was required to effectively outline the legal obligations imposed on consumers and legal practitioners. A copy of the letter is available here.
 
LIV letter Recommending further variation opportunities
The LIV was directly consulted by the ATO in relation to a draft legislative instrument relating to variations for FRCGW payments. The LIV provided feedback on the inclusion of variations under the regime and further clarifications required to assist practitioners and consumers. The LIV also requested certain variations to be issued in certain situations to reduce red tape. Following the success of this submission and further consultations with the ATO, many of the LIV’s recommendations were accepted. Details in relation to advocacy efforts can be viewed in the LIV submission available here.
 
New legislative instrument for deceased estates and legal personal representatives
Following successful advocacy efforts, including from the LIV, the Commissioner of Taxation made a further legislative instrument entitled PAYG Withholding variation for foreign resident capital gains withholding payments — deceased estates and legal personal representatives (F2016L01396) which came into effect on 7 September 2016.
 
The instrument varies to NIL the amount that:
  • a deceased’s legal personal representative;
  • beneficiaries of a deceased estate; or
  • surviving joint tenants that acquire a deceased joint tenant’s interest in a relevant asset
would otherwise have to pay pursuant to the FRCGW regime.
 
ECG letter to the Senate Standing Committees on Economics regarding recent changes
The Electronic Conveyancing Group (ECG), whose membership comprises the Australian Bankers’ Association, Australian Institute of Conveyancers and Law Council off Australia, wrote a letter to the Senate Standing Committees on Economics regarding changes to the FRCGW regime introduced under the Treasury Laws Amendment (Foreign Resident Capital Gains Withholding Payments) Bill 2017 (Cth). The letter outlined concerns about considerable regulatory and compliance burdens, as well as other consequences, if the threshold for the application of the regime was reduced from $2million to $750,000 and nominal withholding rate increased from 10 per cent to 12.5 per cent. A copy of the letter is available here

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