Yearly Archives: 2017

ATO 2014/15 Taxation Statistics released – highest earning occupations & postcodes; highest donations; breakdowns by taxpayer type and tax type; compliance costs and industry benchmarks

The ATO has released the 2014-15 Taxation Statistics, revealing data on Australia’s most charitable individuals, highest earners and the richest postcodes. The latest report shows that with an average taxable income of $189,293, the postcode with the highest average taxable income was 2027, which includes the Sydney suburbs of Darling Point, Edgecliff, HMAS Rushcutters and…

Retrospective franking measure announced in last years MYEFO – ATO reminds taxpayers that distributions funded by capital raisings, outside the normal dividend cycle, from 19.12.16 can’t be franked

The ATO has reminded taxpayers that the Government announced a franking measure in last years Mid-Year Economic and Fiscal Outlook, which was to have retrospective effect back to the date of the announcement: 12 noon, 19 December 2016. The substance of the announcement was that it would introduce a specific measure to prevent a company…

CRP 2017/D1 –Commissioner’s remedial power – amending the Foreign Resident CGT withholding regime so vendors get the benefit of withholding credits in the year the CGT is payable – for sales that straddle year end

On Friday 7 April 2017, the Commissioner of Taxation issued a draft determination: the Taxation Administration (Remedial Power-Foreign Resident Capital Gains Withholding Tax) Determination 2017. This is a draft of the first determination under the Commissioner’s power, in s370-5 of Sch 1 to the TAA (TAA1) to remedy defects in the taxation law by making such a…

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),…

Treasury Laws Amendment (2017 Measures No 1) Bill 2017 – allowing ‘Innovation tax concessions’ to flow through an interposed trust and facilitating ASIC disclosure of information to the ATO

On 4 April 2017, Treasury Laws Amendment (2017 Measures No 1) Bill 2017 received Royal Assent as Act No 26 of 2017. It amends: The Income Tax Assessment Act 1997 to ensure the National Innovation and Science Agenda measures contained in Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 operate in accordance with their…

Treasury Laws Amendment (2016 Measures No 1) Bill 2016 – amendments to Corporations Act 2001 to ensure that ‘employee share scheme’ documents for ‘start ups’ are not made public

On 4 April 2017, the Treasury Laws Amendment (2016 Measures No 1) Bill 2016 received Royal Assent as Act No 25 of 2017. It amends: The Corporations Act 2001 to: provide that employee share scheme disclosure documents lodged with the Australian Securities and Investments Commission (ASIC) are not made publicly available for certain start-up companies;…