Yearly Archives: 2016

Changes to 2016-17 Budget super changes – $500k lifetime limit ditched in favour of $100k pa non-concessional contributions – with 3 year carry forward (plus some cost saving measures)

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…

10% foreign CGT withholding provisions – exemption given for LPR’s and beneficiaries of deceased estates and for surviving joint proprietors – by ATO ‘legislative instrument’

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…

Singapore and Australia to share data by ‘Competent Authority Agreement’, using the ‘Common Reporting Standard’ to reduce tax evasion

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…

Re Reany and FCT – Travel expense and transport of bulky tools deduction claim refused for 100km round trip with bulky tools – Cretani’s case notwithstanding

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.…

Re PBKQ and FCT – Service charge deduction claim refused; penalty for failure to provide document penalty

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…

ATO’s ‘external Compliance Assurance Process’ (using external auditors the taxpayer pays for) declared effective by National Audit office

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…

Re Zhang and FCT – Taxpayer partly successful in proving that many receipts were not assessable and the 50% SFP should be reduced to 25% (reducing $4m assessment)

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…

International Tax Agreements Amendment Bill 2016 introduced – New Australia-Germany DTA force of law – including latest G20/OECD BEPS actions

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…

Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 – Corporate Tax rate reduction to 27.5% for SBE’s; increase SME turnover threshold to $10m; increase unincorp SBE offset to 8%

The Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 was introduced in the House of Reps, on Thursday 1.9.2016. It contains the following proposed amendments. Corporate Tax Rate Reduction – 27.5% for SBE’s and 25% for all in 11 years The Bill proposes to amend the Income Tax Rates Act 1986 to reduce the corporate…

Treasury Laws Amendment (Income Tax Relief) Bill 2016 introduced to increase the 32.5% threshold from $80,000 to $87,000

On 1 September 2016, the Treasurer introduced the Treasury Laws Amendment (Income Tax Relief) Bill 2016 to amend the rates act to increase the threshold for the 32.5% from $80,000 to $87,000. The result will be that individuals (voters) will now need taxable income over $87,000 to start paying tax at 37% rate (that is,…