Indexed superannuation rates and thresholds for 2016-17 – calculated by adjustment under the recently released ‘AWOTE’ index numbers

Tax Month - March 2016

The superannuation rates and caps that are indexed, for 2016/17, can be calculated by adjusting them by the recently released AWOTE (Average Weekly Ordinary Time Earnings) index figures. They are as follows. CONTRIBUTIONS CAPS: The general concessional contributions cap is $30,000 for 2016-17 (unchanged from 2015-16). Note the higher temporary concessional cap of $35,000 (not…

Crimes Legislation Amendment (Proceeds of Crime and Other Measures) Bill 2015 – receives Royal Assent – Offences created of dealing with accounting documents dishonestly

Tax Month - March 2016

The Crimes Legislation Amendment (Proceeds of Crime and Other Measures) Bill 2015 , on Monday 29.2.2016, received Royal Assent as Act No 15 of 2016. It contains a range of measures to improve and clarify Commonwealth criminal justice arrangements, including amending the Criminal Code to insert 2 new offences of false dealing with accounting documents eg re…

Re Payne v FCT – ‘superannuation guarantee charge’: direct payments to employees not superannuation contributions for SGC purposes

Tax Month 2016-02

The AAT has found that an employer did not make superannuation contributions when he made direct payments to an employee. The employee was his former de factor partner and, after the relationship ended in 2008, she complained to the ATO about the employer’s superannuation guarantee (SG) obligations. After an initial audit, the ATO advised the…

interpretation NOW! – Episode 9: ‘legislative scheme’; judgement words; delegated legislation

Tax Month 2016-02

The ATO, on Friday 26.2.2016, released interpretation NOW! – Episode 9. The documents (or “Episodes” as they are called) are an ATO Tax Counsel Network (TCN) initiative and aim to raise awareness about what courts are saying about statutory interpretation. Topics and cases mentioned in this Episode include: legislative scheme – R v Host [2015] WASCA 23; judgment…

Choice of superannuation fund for employees under industrial agreements without choice provisions – Government expects legislation to be introduced soon

Tax Month 2016-02

Speaking at the Committee for Economic Development of Australia (CEDA), on Friday 26.2.2016, the Assistant Treasurer discussed 2 areas in which the Government expects legislation to be introduced in the “coming weeks”: Choice of fund – The Assistant Treasurer said currently an estimated 2m employees do not have the opportunity to choose their own fund. A common way…

Action against ‘corporate tax avoidance’ – ATO will focus on MN anti-avoidance; profit shifting; e-commerce; thin capital manipulation; related party financing & offshore hubs

Tax Month 2016-02

The ATO has advised that it has updated its Building confidence publication to outline its continued focus this year on corporate tax avoidance. Before a Senate Estimates committee on 10 February 2016, the Commissioner conveyed to multinationals and large businesses that the ATO will “take firm action against those who deliberately seek to avoid their tax obligations”. The ATO said…

Re Brady and FCT – Excess super contributions could not be reallocated – breach of 10% rule prohibiting employees deducting their own contributions not “special circumstances”

Tax Month 2016-02

In another excess contributions tax case, the AAT has ruled that there were no “special circumstances” under s 292-465 of the ITAA 1997 to disregard or re-allocate a taxpayer’s excess non-concessional contributions for a year. The taxpayer, a retired teaching professor, had made personal non-concessional contributions of $175,600 to his superannuation funds in the 2010 financial…