Monthly Archives: March 2017

*Kelly v FCT – Taxpayer appeals decision that Family Trust is denied deductions for contributions for its directors on the basis that they were not entitled to any remuneration under the constitution and not ‘employees’ [66]

The taxpayer has filed a notice of appeal to the Full Federal Court against the decision of Besanko J in Kelly v FCT (No 2) [2012] FCA 689. Federal Court had held that a family trust was not entitled to a deduction under s 290-60 of the ITAA 1997 for superannuation contributions made on behalf…

Superannuation data and payment standards: draft ‘SuperStream’ legislation released [65]

The Government late on Wed 22.8.2012, released for comment draft legislation which seeks to support the implementation of the SuperStream measures, which are one subset of the Government’s Stronger Super reforms. Specifically, the proposed amendments aim to support the superannuation data and payment regulations. Some of the key features of the proposed amendments are as…

MySuper Core Provisions Bill amended [64]

The Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 was on Wed 22.8.2012, which seeks to establish the MySuper legislative framework, passed by the House of Reps with 11 amendments and now moves to the Senate. The Government amendments made by the House: defer the date from which an employer must make contributions to a…

SMSF trustee penalties; early release scheme promoters; roll-overs listed as ‘money laundering’ – draft legislation released [63]

The Government on Mon 20.8.2012, released draft legislation aimed at implementing the following Stronger Super measures for the self-managed superannuation fund (SMSF) sector: – an administrative penalty regime is proposed for SMSF trustees for certain contraventions of the SIS Act. The Commissioner will also be given the Administrative penalties for SMSF trusteespower to issue SMSF…

Refund of excess super contributions up to $10k – regs amended to allow refund to ATO who can tax this amount and refund the balance to the taxpayer [62]

The Minister for Superannuation on Fri 17.8.2012, advised that the Government has made regulations to support recent legislative amendments, to allow eligible individuals a one-off option to have excess concessional contributions of up to $10,000 refunded to them. The excess concessional contributions will be assessed as income for the year of the excess contributions rather…

Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 (‘MySuper) has now awaits Assent [61]

The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 has now passed all stages without amendment and awaits Assent, having been passed by the Senate on Tue 14.8.2012. It contains the 2nd tranche of legislation for the Government’s Stronger Super (MySuper and governance) reforms. [LTN 157, 15/8]

*Intra-fund consolidation of superannuation interests: draft legislation released [60]

On 10 August 2012, the Government released for public consultation draft legislation for the intra-fund consolidation of multiple superannuation interests owned by the same member and the accompanying explanatory materials. This consultation is a follow-on to the earlier draft legislation released in March 2012. The proposed amendments are designed to expand the duties of superannuation…

*New SIS Regs for SMSFs require ‘market values’ for assets in accounts, fund assets to be held separate, investment strategies to be reviewed “regularly’ and insurance for members to be considered [59]

The Superannuation Industry (Supervision) Amendment Regulation 2012 (No 2) was registered on Mon 6.8.2012, to require trustees of self-managed superannuation funds (SMSFs) to value assets of the fund at their “market value” when preparing accounts and statements from the 2012-13 year of income. “Market value” takes the same meaning as provided in s 10 of…

GSTR 2012/4 – GST treatment of exit payments by retirement village residents [58]

This GST Ruling, released on Wed 15.8.2012, sets out the Commissioner’s views on the treatment of exit payments which a resident becomes liable to pay to the operator of a retirement village when the resident’s interest in the village terminates. Among other things, the Ruling states that where the operator does not provide services other…

GSTD 2012/6 – GST: Input tax credits under Div 66 on acquiring 2nd-hand goods and on-leasing them before selling them [57]

This GST Determination, released on Wed 1.8.2012, states that when an entity acquires second-hand goods and makes a subsequent taxable supply of the goods by way of a lease (before making a taxable supply of the goods by way of sale or exchange), both taxable supplies are taken into account in quantifying and attributing input…