Summary of the $1.6m measure? From 1 July 2017, there will be a $1.6 million transfer balance cap on the total amount of accumulated superannuation an individual can transfer into the tax‑free retirement phase. Subsequent earnings on balances in the retirement phase will not be capped or restricted. Savings beyond this can remain in an accumulation account (where…
The objective that will be legislated is: “to provide income in retirement to substitute or supplement the Age Pension”. From 1 July 2017, a statement of compatibility must be prepared for any Bill or regulation relating to superannuation which sets out how the proposed legislation or regulation is consistent with the objective of superannuation. This will ensure…
On 15 September 2016, the Treasurer and Assistant Treasurer issued a joint media release about the Government’s (then) recent changes to the Superannuation Policies they announced in the last Federal Budget (2016/17) and took to the election (dropping the controversial lifetime cap of $500k on undeducted (non-concessional) contributions backdated to 2007). $500k lifetime limit on…
On 6 September 2016, the Commissioner registered a ‘legislative instrument’ which will sound obscure and is, in fact, not all that momentous. But it is a good basis for re-visiting the non-resident CGT withholding provisions in Subdiv 14-D of the Taxation Administration Act 1953 – First Schedule (TAA1), and the weird and wonderful way in which they work. What…
The Inland Revenue Authority of Singapore (“Singapore Authority”) and the Australian Taxation Office have entered into a Competent Authority Agreement (“Agreement”) on the automatic exchange of financial account information based on the Common Reporting Standard. The CRS is an internationally agreed standard for automatic exchange of information, endorsed by OECD and Global Forum for Transparency…
The AAT has affirmed the Commissioner’s decision refusing a taxpayer’s claim for certain work-related travel expenses. During the relevant year, the taxpayer worked as a first class “sheet metal worker” and he was required to drive to the Alcoa Alumina Refinery at Wagerup WA, which was located 57.5kms from his home on a daily basis.…
In a decision handed down on Mon 5.9.2016, the AAT held that a taxpayer was not entitled to a deduction claim in relation to a “service charge” and it also affirmed an administrative penalty imposed for failure to lodge a tax return on time. The issue before the AAT was whether the taxpayer was entitled…
Background 1. The Australian Taxation Office is responsible for the management of income tax issues for approximately 1400 large public groups and superannuation funds operating in Australia. In 2014–15, the two types of entity contributed $47.6 billion (or 65.5 per cent) of the total income tax receipts collected from companies and superannuation funds.1 In 2014–15, the Australian Taxation Office…
A taxpayer has been partly successful before the AAT in discharging the onus of proving that various amounts deposited into his bank accounts from the 2001 to 2008 income years were not income, but were other amounts, which he could explain. At the same time, he was able to demonstrate there was no fraud or…
The Minister for Revenue and Financial Services: Ms Kelly O’Dwyer, introduced the International Tax Agreements Amendment Bill 2016 in the House of Representatives on Thursday 1.9.2016. It proposes to amend the International Tax Agreements Act 1953 to give the force of law in Australia to the double tax agreement (DTA) between Australia and Germany that…