Daily Archives: April 10, 2017

Supplies of ‘child-care’ are GST-free, despite not being approved under family assistance legislation – by legislative determination made by the Minister (under s38–150)

On 5.4.17, the Minister for Education and Training registered a legislative instrument: the GST-free Supply (Child Care) Determination 2017, to ensure that supplies of child-care remain GST-free. As a result of the introduction of the child care subsidy, new s38-150 of the GST Act ensures that, in limited cases where child care is provided by…

Foreign resident capital gains withholding: legislative instrument reduces withholding to nil for tax exempt vendors

On 7.4.17, a Deputy Commissioner registered a legislative instrument: the PAYG Withholding variation for foreign resident capital gains withholding payments – income tax exempt entities to vary (under s14-235(5) of the TAA) the CGT, PAYG withholding obligations, down to nil, for vendors who are tax exempt. This is for an entity that provides the purchaser:…

NSW: payroll tax, land tax, duty – Omnibus Bill awaits Assent – duty exemption for transfer to SMSF nominee (limited recourse financing); to new trustee and to SMSF member (primary production land)

The State Revenue Legislation Amendment Bill 2017 (NSW) was passed by the NSW Legislative Council without amendment on 4 April 2017 and received Royal Assent on 11 April 2017 as Act No 11 of 2017. It is an omnibus-style amendment Bill that makes a range of amendments to the Duties Act 1997, Land Tax Management Act 1956 and the Payroll Tax Act 2007. Among other things:…

TD 2017/10 – ‘Incidental costs’ can be included in the ‘cost base’ of an asset even though they are incurred after the relevant CGT event – they can still ‘relate to’ the CGT event under s110-35(1)(b)

On 5 April 2017, the Commissioner issued TD 2017/10, ruling that costs that a taxpayer incurs, after a CGT event happens, can still ‘relate to’ that CGT event under paragraph 110-35(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) and thus be ‘incidental costs’ that can be counted in the ‘second element’ of an assets’…

GST refunds – IGT to review ATO performance after the Multi-flex case prompted the change in the law (s8AAZLGA) to allow refunds to be held back for the time it takes to investigate

On 5 April, 2017, the Inspector-General of Taxation (IGT), Mr Ali Noroozi, announced terms of reference for his review into the Goods and Services Tax (GST) refund verification process. Extract from the ‘Terms of Reference’ Historically, the ATO retained GST refunds, under its general powers of administration (s356-5 of the Sched 1 of the TAA),…