The Federal Election has been called for later this month, and it is consequently an important time to reflect on the current state of affairs regarding tax and superannuation legislation. Prior to the calling of the election, a surprising number of proposed taxation and related measures did not make it to the Parliament floor, …
Continue reading “Proposed tax changes and Bills lapse with the calling of the Federal Election”
The High Court has recently addressed the approach for determining whether workers are employees or independent contractors,[1] while remitting an important question of whether the workers fall within the expanded definition of employee under the superannuation regime. In ZG Operations v Jamsek, the High Court found that two truck drivers, each with a partnership and …
Continue reading “Employee or Independent Contractor? Consequences for Superannuation”
On Wednesday, the Commissioner finally released his long promised position on section 100A: draft Tax Ruling (TR 2022/D1). Section 100A is over 50 years old and was introduced to combat bottom-of-the harbour era tax avoidance comprising a scheme referred to as trust stripping. The Commissioner has completely repurposed this provision and in doing so, seeks to …
On 10 February 2022, the Federal Government passed long-awaited legislation making permanent the (originally temporary) measures regarding electronic execution by an Australian company, being measures that were first introduced in response to the COVID-19 pandemic. Specifically, the Corporations Amendment (Meetings and Documents) Bill 2021 (Cth)(Bill) provides permanent reform under the Corporations Act 2001 (Cth) (Corporations …
Continue reading “Execution: permanent reform has finally arrived”
In a nutshell Late last year, the Queensland Government announced proposed changes to Queensland’s land tax regime, so that the rate at which a landowner pays land tax on their Queensland landholdings will be calculated by reference to their Australia-wide landholdings. The changes seek to target what the Queensland Government describes as a loophole, that …
On 8 February 2022, the Commissioner appealed Justice Logan’s decision on section 100A in Guardian AIT Pty Ltd ATF Australian Investment Trust v Commissioner of Taxation [2021] FCA 1619(Guardian) to the Full Court of the Federal Court of Australia. Over the past several years, section 100A of the Income Tax Assessment Act 1936 (Cth) has …
Continue reading “Will Guardian protect family trust distributions from attack by the ATO?”
The Federal Government is boosting its compliance activity following the recent reforms to the Foreign Acquisitions and Takeovers Act 1975 (Cth) (the FATA). Specifically, the Foreign Investment Review Board (FIRB) and the Australian Taxation Office (ATO) (which administers FIRB’s functions in relation to residential land in particular) are actively seeking to identify acquisitions of Australian …
Continue reading “FIRB compliance audits: what to expect and how to respond”
From 1 November 2021, employers need to ensure that their employee onboarding processes, payroll systems and contracts comply with the Government’s new super stapling requirements. These new rules are aimed at reducing the number of superannuation accounts that are established each time an employee commences a new role. What has changed? Under the current regime, …
Continue reading “Super Stapling – the new rules affecting employee onboarding processes”
On 13 April 2021, the Commonwealth Government announced the next phase of the Modernising Business Registers (MBR) program which will establish a new whole-of-government registry platform to be administered by the Australian Taxation Office (ATO). We set out the proposed changes in more detail below. Consolidation of business registers The MBR will establish the ‘Australian …
Continue reading “The Commissioner’s Emporium: business registration breaking new ground”
Carter v Commissioner of Taxation [2020] FCAFC 150 (Carter) involves a long running dispute with the Commissioner of Taxation. This particular iteration of the dispute deals with disclaimers of trusts interest by default beneficiaries. These default beneficiaries were assessed with additional income as a result of amended assessments increasing the taxable income of the trust. …
Treatment of superannuation and in particular, superannuation death benefits, continue to be front of mind for advisors and practitioners alike. This stems from continuous updates to legislation and case law dealing with the risks of not getting a superannuation death benefit nomination right. We take you through a summary of considerations when advising clients in …
The Commissioner of Taxation has finally released the long-awaited draft PCG 2021/D2 on 1 March 2021, outlining the Commissioner’s proposed compliance approach to the allocation of profits in professional firms (including the accounting, architectural, engineering, financial services, legal and medical professions). Advisors will be aware that the Commissioner’s concerns with respect to the allocation of …
Generally, the Income Tax Assessment Act 1936 (Cth)[1] (ITAA36) provides specifically for beneficiaries who are minors to be taxed at higher rates than those of adult taxpayers – effectively, this means that minors will often pay tax on any trust distributions they receive at the highest marginal tax rate, plus Medicare Levy on any amount …
Continue reading “The new excepted trust income provisions – clarity in the law”
Although most of us will remember 2020 as a year of enormous disruption and difficulties, it likely represents the zenith of tax administration in Australia. Driven by Treasury’s JobKeeper and Cashflow Boost programmes, the ATO pivoted in a way never seen before in an organisation of over 20,000 employees. In a surprising, but necessary, decision …
Continue reading “Tax administration lessons learnt from COVID-19 (and promptly forgotten)”
On 9 October 2020, the Commissioner of State Revenue (the Commissioner) released Public Ruling DA000.16.1 (the Public Ruling) which introduces an administrative arrangement that provides an exemption from duty on certain small business restructures. Effectively, the exemption set out in the Public Ruling assist typical ‘mum and dad businesses’ currently trading through sole traders, partnerships …
Continue reading “Queensland duty exemption introduced for small business restructures”
Our specialist team, led by Duncan Bedford, was successful in its stamp duty appeal in the Supreme Court of Queensland for gold mining client, Resolute Mining Limited. The OSR will now have to refund almost $500,000 in overpaid duty, plus interest, to Resolute. On 14 September 2020, his Honour Justice Bradley of the Supreme Court …
Continue reading “Standing resolute against the Commissioner of State Revenue”
Who should read this Any person who owns a primary production business in Queensland and wants to sort out their succession planning arrangements. Things you need to know Historically, first cousins were not included as defined relatives for the purpose of accessing the concession on transferring primary production businesses in Queensland, but the definition of …
It is now 5 years since the Federal Government released it’s Re:think paper on tax reform, aimed at ‘beginning a dialogue on how [to] create a tax system that supports higher economic growth and living standards, improves international competitiveness and adjusts to a changing economy’[1]. Although the release of the paper stated that the current …
Continue reading “Rethinking tax reform – it’s now or never”
Over the last year, the underpayment of wages to Australian workers across a range of industries has gained significant media attention, resulting in a number of high profile Australian companies admitting to underpaying their staff to the tune of millions of dollars over the course of many years. With the cut off date for the …
WHO SHOULD READ THIS THINGS YOU NEED TO KNOW WHAT YOU NEED TO DO On 3 July 2020, the Queensland Government finally confirmed the exemption framework for ex gratia relief from surcharge land tax. As expected, the exemption will be available where a foreign trust or company is found to make a significant contribution to …
Continue reading “Queensland land tax: Exemption from foreign surcharge”
Effectively managing risk is critical for all modern business owners. In many ways, the level of risk associated with operating a successful and compliant business in Australia has never been higher – particularly having regard to current economic and business conditions. All business owners should take stock and consider how their involvement in business might …
WHO SHOULD READ THIS Foreign investors who hold water entitlements or contractual water rights in Australia. THINGS YOU NEED TO KNOW Foreign persons with holdings in registrable water entitlements or contractual water rights are required to notify the ATO about any changes in these interests on an annual basis and within 30 days of the …
Continue reading “Foreign Ownership of Water Entitlements annual registration requirements”
Legislation recently introduced in the Federal Parliament will establish a new deductible gift recipient general category for men’s and women’s sheds. Schedule 3 of the Treasury Laws Amendment (2020 Measures No 2) Bill 2020 amends the Income Tax Assessment Act 1997 (Cth) and introduces a new deductible gift recipient (DGR) category applicable to public institutions …
Continue reading “Proposed DGR category for community sheds”
Announcement of implementation of volume-based model On Monday 8 June 2020, the Queensland Government announced a new petroleum royalty regime which provides greater certainty in relation to the royalty payable by petroleum producers. How did we get here? This announcement comes after a review of the royalty regime was initiated in November 2019 and from …
Continue reading “Brave new world of Queensland Petroleum Royalties”
Australia is a global leader in agricultural production and agriculture is a cornerstone of the Australian economy. The agricultural sector’s contribution to the Australian economy and society are not limited to the food we eat, the clothes we wear, or the $60+ billion in farm-gate output per year, but extends to the stewardship of over …
Continue reading “The future of AgTech: Venture Capital and RDCs”
There is no question that the COVID-19 pandemic is placing unprecedented stress on businesses. With many businesses having to stand down employees, request that their staff take a reduction in salary, or simply looking to conserve cash, offering equity incentives in the current environment might sound counter-intuitive. However, cash strapped companies seeking to reward, motivate …
Continue reading “Motivating and incentivising employees in a downturn”
Although COVID-19 stimulus measures have consumed so much time and attention for virtually all tax advisers, the financial year is rapidly drawing to a close, and many tax agents are finalising returns for the 2019 financial year. One issue that continues to vex tax practitioners is that of trust distributions – particularly in light of …
Continue reading “Section 100A and professional practice profit distribution – a timely reminder”
