Monthly Archives: February 2017

*Instrument registered prescribing which ‘State and Territory entities’ are ‘government entities’ and thus excluded from definition of “charity” in the Act [54]

The Charities (Definition of Government Entity) Instrument 2013 was registered on 20 December 2013. It prescribes types of government entities established under a law by a State or Territory which, by virtue of its status as a government entity, will be excluded from the definition of “charity” for the purposes of all Commonwealth laws.  The Charities Act…

Government releases Green Paper on its proposed Emissions Reduction Fund [53]

The Government on 20 December 2013 released its Emissions Reduction Fund Green Paper, setting out what it claims is a cost effective, practical and simple approach to reduce Australia’s emissions without a carbon tax. The Emissions Reduction Fund is the centre piece of the Government’s Direct Action Plan to cut emissions to 5% below 2000 levels by…

Superannuation non-statutory reform or consultation bodies to be disbanded: Assistant Treasurer [52]

The Assistant Treasurer on Fri 31.1.2014, announced that he was streamlining the consultation arrangements for superannuation as part of the Government’s efficiency reforms. This includes the cessation of 3 non-statutory bodies that Senator Sinodinos said were no longer required: the SuperStream Advisory Council, Superannuation Advisory Committee and the Superannuation Roundtable. With reforms to the superannuation…

TD 2014/D1 – Dividend washing and Pt IVA (SMSF) [51]

This Draft Determination, issued on Wed 15.1.2014, states that the application of Pt IVA of the ITAA 1936 to any particular scheme depends on a careful weighing of all the relevant facts and surrounding circumstances of each case. It states that without all relevant information, it is not possible to state definitively whether a provision in…

*SMSF trustees will be required to receive electronic payments by 1 July 2014 (per SuperStream) – ATO to publish a list of service providers in readiness [50]

The ATO has advised that in early 2014 it will publish a list of messaging service providers for the SMSF segment. From 1 July 2014, SMSF trustees must be able to receive electronic messages and payments associated with employer contributions in a format that complies with super data and payment standards. The ATO noted that messaging service…

Div 293 assessments on super concessional contributions (for those with income of over $300k) will issue in February 2014 [49]

The ATO has advised that it will start issuing Div 293 tax notices of assessment for the 2012-13 financial year to individuals from early February 2014. From the 2012-13 income year, a 15% Div 293 tax on concessional contributions applied to those individuals with incomes above $300,000. According to the ATO, to calculate whether an individual has income and…

*SCCASP Holdings atf the H&R Super Fund v FCT – Taxpayer seeks leave from the High Court to argue distribution of capital gain is not ‘special income’ [48]

The High Court will on 14 February 2014 hear the taxpayer’s application for special leave to appeal against the Full Federal Court decision in SCCASP Holdings as trustee for the H&R Super Fund v FCT [2013] FCAFC 45. The Full Federal Court had dismissed the taxpayer’s appeal from a 2012 Federal Court decision and upheld the finding…

*Wooster v Morris – SMSF trustee held personally liable for disputing valid ‘Binding Death Benefit Nomination’ [47]

The Supreme Court of Victoria has upheld the validity of a superannuation binding death benefit nomination (BDBN) and ruled that the surviving trustee of the self-managed superannuation fund (SMSF) was personally liable to pay the death benefit (and the plaintiffs’ costs of the proceedings). Mr and Mrs Morris established an SMSF in August 2005. Mr Morris died…

Re Snugfit Australia Pty Ltd v FCT – a sleep positioning system did ‘modify’ the mattress and was GST-free as a medical aid or appliance [46]

The ATO on Thur 23.1.2014, released Decision Impact Statements on the following case: AAT Case [2013] AATA 802, Re Snugfit Australia Pty Ltd and FCT – The AAT set aside the Commissioner’s decision and held that a supply of a sleep positioning system is GST-free under s 38-45(1) of the GST Act as it was a…

*GSTD 2014/1 – GST private rulings available as a means of getting the Commissioner’s s105-65 refund decision before the AAT – post Naidoo case [44]

This Determination, released on Wed 22.1.2014, states that taxpayers can object to a private ruling the Commissioner makes on the way in which s 105-65 of Sch 1 to the TAA applies or would apply, but only if the Commissioner has not made an assessment of the net amount for the tax period in which the taxpayer…