Monthly Archives: March 2017

*GSTD 2012/5 – Creditable purpose of retail foreign currency exchange transactions – outbound (GST-free) and inbound (Input Taxed) [69]

This GST Determination, released on Wed 6.6.2012, sets out the Commissioner’s views on the creditable purpose of acquisitions relating to currency exchange transactions by an entity carrying on an enterprise of retail foreign exchange services in Australia and is registered for the GST. Generally, the Determination states that acquisitions related to an entity’s retail foreign…

*Re Climo and FCT – real estate promoting house and land packages held liable to GST and penalties – not an employee or agent [68]

The AAT has affirmed the Commissioner’s decision that a taxpayer was liable for GST in relation to a series of transactions in the period 1 January 2004 to 31 March 2007 and for a penalty for failing to lodge GST returns for the same period. The taxpayer maintained at no time was he required personally…

*MTAA Superannuation Fund (R G Casey Building) Property Pty Ltd v FCT – Taxpayer loses appeal – pre-GST lease not GST-free because of rent review [67]

In a decision handed down on Wed 20.6.2012, the Full Federal Court has dismissed a taxpayer’s appeal from an AAT decision that had denied the taxpayer’s claim that supplies made under amended pre-GST leases during the relevant periods were GST-free pursuant to s 13 of the GST Transition Act. The taxpayer had claimed refunds totalling…

*GST Regulations amended – re: goods and services supplied by government agencies (Div 81 etc) [66]

The A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No 2) was registered on the Federal Register of Legislative Instruments on Thur 28.6.2012. The Regulation, in conjunction with the provisions of Div 81 of the GST Act, provides the mechanism for entities to determine the GST treatment of Australian fees and charges.…

*Tax and Superannuation Laws Amendment (2012 Measures No 1) Bill 2012 – Act No 75 of 2012 – power to hold back ‘high risk’ GST refunds [65]

Tax and Superannuation Laws Amendment (2012 Measures No 1) Bill 2012 – was enacted as Act No 75 of 2012 and contains amendments concerning: giving the Commissioner discretion to withhold “high risk” GST refunds; GST-free health supplies; GST treatment of appropriations; pause indexation of super concessional contributions cap; provide a refund option for excess super…

Draft Regulations released so credit unions do not lose their reduced input tax credits for credit union services after they re-brand as banks [64]

In the 2012-13 Budget, the Government announced that it would amend the GST law to ensure that credit unions do not lose access to a reduced input tax credits for credit union services when they rebrand as banks but otherwise do not change their corporate structure. A draft regulation to amend the GST Regulations has…

Other 2012 Guidance from the ATO in completing Income Tax Returns [63]

The Tax Office has released the following tax return forms, schedules, and accompanying guides: Advanced guide to CGT concessions for small business 2011-12 Ancillary fund return 2012 for the period 1 July 2011 to 30 June 2012 Ancillary fund return instructions 2012 Business and professional items 2011-12 Business and professional items schedule for individual 2011-12…

2012 ATO guidance to employees in various Industries in filling out their Income Tax Returns [62]

Airline employee 2011-12 Australian Defence Force members 2011-12 Building workers 2011-12 Cleaners 2011-12 Factory workers 2011-12 Hairdressers 2011-12 Hospitality industry employees 2011-12 Income averaging for special professionals 2011-12 Journalists 2011-12 Lawyers 2011-12 Nurses 2011-12 Performing artists 2011-12 Police officers 2011-12 Real estate employees 2011-12 Shop assistants 2011-12 Teachers 2011-12 Truck drivers 2011-12 [LTN 124, 29/6]

*ATO discontinues its cash sales benchmarks [61]

The ATO has advised that it has decided to discontinue its cash sales benchmarks. In April 2011, the ATO temporarily withdrew the benchmarks from its list of Small business benchmarks due to issues with the data. It said it had decided to discontinue them as it is unable to obtain consistent data that allows for…

Extending CGT exemption for compensation payments: ATO administrative treatment [60]

The ATO has released details of its administrative treatment regarding the proposed extension of the CGT exemption to certain compensation payments and insurance policies. The proposal was announced in the 2012-13 Budget. The ATO said it will accept tax returns as lodged during the period up until the enactment of the legislation and past assessments…