Yearly Archives: 2016

TD 2016/15 – airport lounge membership fees for employees are deductible (and not entertainment or a recreational club)

On Wed 27.7.2016, the ATO issued a TD 2016/15 saying that  states that an employer taxpayer is entitled to a deduction under s 8-1 of the ITAA 1997 for annual fees incurred on an airport lounge membership for use by its employees, where that membership is provided because of the employment relationship. In coming to this conclusion…

TD 2016/14 – A general deduction is allowed for gifts to clients of a business (query whether it be aimed at getting future income)

On Wed 27.7.2016, the ATO released TD 2016/14 stating that a taxpayer who carries on a business is entitled to a general deduction under s8-1 of the ITAA 1997 for an outgoing incurred on a gift made to a former or current client if the gift is characterised as being made for the purpose of producing…

Murray Goulburn milk supply support package – various tax implications

Murray Goulburn have announced they have paid their suppliers $5.49 per kg of milk solid (kgms) supplied for the 2016 financial year. This means milk suppliers may have been overpaid by up to $0.74 per kgms supplied in the 2016 financial year under the milk supply support package. Suppliers have two options to ‘repay’ any amounts…

Shord v FCT – taxpayer who worked overseas appeals Fed Crt decision that he was resident, not entitled to s23AG exemption and not entitled to foreign tax credits

The taxpayer in Shord v FCT [2016] FCA 761, has appealed that decision to the Full Federal Court. In the earlier decision, the Federal Court dismissed the taxpayer’s appeal against an AAT decision (Re Shord and FCT [2015] AATA 355) which had held that, during the relevant periods, he was a resident of Australia, was not engaged in…

WA land tax: Caratti and Comr of State Revenue – private residential property exemption refused to an executor as the beneficiary did not have the necessary ‘right under the will’ to live there

An individual has been unsuccessful before the WA State Administrative Tribunal in seeking the private residential property land tax exemption under either ss 22 or 23A of the Land Tax Assessment Act 2002 (WA). The taxpayer’s wife, who was the owner of the subject property, passed away in 2012. Since then, the taxpayer and one of their…

Re SHTX and Tax Practitioners Board – Board’s decision to terminate an agent’s registration for 3 years replaced with a caution, remedial education and practice restrictions until education is completed

The AAT has decided to replace the Tax Practitioner Board’s decision to terminate the tax agent registration of an applicant with a written caution and a specific education course requirement (among other things) after taking into account the history of the applicant’s personal and health problems. The AAT heard the applicant’s small tax practice in…

SMSFs – diverting income to a ‘personal services entity’ which then distributes profit to the super fund – TA 2016/6 administrative follow up – penalty remission if volunteer before 31 January 2017

The ATO says that it is currently reviewing arrangements where individuals (at or approaching retirement age) purport to divert personal services income to a self-managed superannuation fund (SMSF) to minimise or avoid income tax obligations as described in TA 2016/6 Diverting personal services income to self-managed superannuation funds. Under these arrangements an individual performs services for a client.…

NT Duty – Budget Bill: Stamp Duty Amendment (First Home Owner Discount) Bill 2016 – receives Assent giving a 50% duty discount (capped at $10k) for first home buyers

The Stamp Duty Amendment (First Home Owner Discount) Bill 2016 (NT) on 13 July 2016 received Assent as Act No 31 of 2016. It had passed all stages of the NT Parliament without amendment and implements the NT Budget 2016-17 proposal to introduce a 50% stamp duty discount for first home buyers on the purchase of an established home.…

FCT v Seymour – taxpayers not permitted to give their evidence by video link – High Court refused them leave to appeal

The High Court has refused taxpayers special leave to appeal against the decision in Seymour v FCT [2016] FCAFC 18. The Full Federal Court had by majority (Pagone J dissenting) dismissed a husband and wife taxpayers’ appeal from the 7 April 2015 decision of Buchanan J (in FCT v Seymour [2015] FCA 320) that had set aside an order made by the AAT which had…

Re Hill and FCT – Deductions for car and travel expenses refused; not an itinerant worker

A taxpayer has been unsuccessful before the AAT in relation to deduction claims for work-related car expenses and for work-related travel expenses (ie meals and accommodation) for the 2011-12 income tax year. The taxpayer contended he was entitled to the deductions under s 8-1 of the ITAA 1997 on the basis that he was an itinerant…