The Government announced on Tue 24.4.2012, that it will amend the income tax law to provide optional loss relief and CGT roll-over for mergers of complying superannuation funds to support the implementation of its MySuper reforms. The Minister for Financial Services and Superannuation said the proposed loss relief will remove a barrier that would have…
The AAT has upheld the Commissioner’s decision to include a superannuation benefit in a taxpayer’s assessable income as it was withdrawn in breach of the SIS Act. The taxpayer (age 32) was experiencing financial problems and had been told by “friends” that he could apply to have his superannuation benefits paid to him as long…
The Government on Fri 27.4.2012, released the Exposure Draft – Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 which seeks to implement the 3rd tranche of its Stronger Super reforms, including the remaining legislative elements to give effect to MySuper (ie intra-fund advice, insurance and the transition to MySuper). The Minister for Financial…
The ATO has updated details of its GST compliance program for which it received 4-year funding in the 2010 Federal Budget to undertake additional compliance activities to promote voluntary GST compliance. It has also released prosecutions and other figures in relation to the compliance program for the 2010-11 year. The ATO said it is taking…
The ATO on Wed 11.4.2012, released Draft Practice Statement PS LA 3521 – Treatment of input tax credits claimed by a recipient where the Commissioner does not give a refund to the supplier due to the operation of s 105-65 of Sch 1 to the Taxation Administration Act 1953. It explains the circumstances in which…
This GST Determination, released on Wed 4.4.2012, sets out the Commissioner’s views on when the supply of hospital treatment will be GST-free under s 38-20 of the GST Act. The following conditions have to be met for treatment to qualify as hospital treatment, namely be treatment that is: intended to manage a disease, injury or…
This GST Ruling, released on Wed 4.4.2012, deals with the GST implications of certain loyalty programs. It considers the GST ramifications of: (i) the accrual of points by members; (ii) the loyalty program arrangements involving program partners; and (iii) the redemption of points and provision of rewards. The Ruling states that when a member pays…
On 10 February 2012, the High Court granted the Commissioner special leave to appeal against the Full Federal Court decision in Qantas Airways Ltd v FCT [2011] FCAFC 113. The Full Federal Court had unanimously allowed an appeal by Qantas Airways Ltd against an earlier AAT decision that the airline makes a supply for GST…
The following Bills received Royal Assent on 15 April 2012: Indirect Tax Laws Amendment (Assessment) Bill 2012 – Act No 39 of 2012. The Bill had passed all stages without amendment. It amends the TAA, the GST Act and other taxation Acts to harmonise the current self-actuating system that applies to GST, the luxury car…
The ATO on Mon 16.4.2012, registered a Legislative Instrument to prevent the provisions of Div 29 of the GST Act applying in a way that is inappropriate in particular circumstances under a deferred transfer farm-out arrangement to which Miscellaneous Taxation Ruling MT 2012/2 (Application of the income tax and GST laws to deferred transfer farm-out…