LCR 2018/D1 – Purchaser’s obligation to pay a GST ‘withholding’ amount on a taxable supply of newly constructed ‘residential premises’ and certain ‘potential residential land’ – draft Ruling on operation of new law

Tax Month - May 2018

On 26.4.2018, the ATO issued a Draft Law Companion Ruling, on the operation of the newly passed laws, that implemented the ‘GST withholding’ provisions, for certain purchasers of newly constructed residential premises, or new subdivisions, to remit GST directly to the ATO. Treasury Laws Amendment (2018 Measures No 1) Act 2018 (the Amending Act),which received Royal Assent…

SMSF Association’s Statement regarding disciplinary proceedings against financial planner: Sam Henderson for potential $500k loss from his advice – exposed in Banking Royal Commission

Tax Month - April 2018, Tax Month - May 2018

On 26.4.18, the SMSF Association issued a statement that it has initiated disciplinary proceedings against an Associate member in response to conduct revealed at the Financial Services Royal Commission (FSRC). The SMSF Association said it was disappointed by the alleged conduct attributed to the financial planner, Sam Maxwell Henderson, and Henderson Maxwell Proprietary Limited, as…

CPI for March 2018 quarter increased 0.5 over the December 2017 quarter (inflation 1.9% for the full year) – relevant for FBT

Tax Month - May 2018

The Australian Bureau of Statistics (ABS) has released the CPI indexation factor, for the March quarter 2018, showing a 0.5 increase from the Dec 2017 quarter, to 112.6. The ABS said inflation was running at 1.9% through the year to 31 March 2018 (steady from the December 2017 quarter). The most significant price rises this quarter were secondary education (+3.3%), gas…

ASIC updates guidance on AFS licensing requirements for accountants (Tax & BAS agents) who give advice about SMSFs (Self-Managed Superannuation Funds)

Tax Month - April 2018

On 26.4.18, Australian Securities and Investments Commission (ASIC) updated its guidance for accountants who provide services on self-managed superannuation funds (SMSFs) to cover the exemption from the Australian Financial Services (AFS) licensing requirements for Tax and BAS agents. The guidance was developed in conjunction with the Tax Practitioners Board and is being released as part…

ABS 2016/17 Australian tax statistics – Income tax largest (33% of total taxes) and fastest growing at 6.0%

Tax Month - May 2018

On 26.4.18, the Australian Bureau of Statistics (ABS) released its report on Taxation Revenue in Australia, as up to the 2016/17 financial year. TOTAL taxation revenue collected in Australia: increased $23,283m (5.0%) from $465,216m in 2015-16 to $488,499m in 2016-17. This was driven by a $16,030m (6.0%) increase in taxes on income and a $2,971m…

2018-19 Budget – Treasurer abandons extra 0.5% Medicare Levy (stay at 2.0%) and flags other tax cuts to keep Federal taxes under 23.9% of GDP

Tax Month - May 2018

On 26.4.2018, the Federal Treasurer told the Australian Business Economists, in Sydney, the following. The Government would not be proceeding with its planned increase in the Medicare levy to 2.5% from 1 July 2019. This was to fund the NDIS (National Disability Insurance Scheme) as the Government considers the budget has improved enough to guarantee funding for the…

ATO’s Superannuation Clearing House has experienced delays in processing contributions – SG and Fair Work assurance to affected employers

Tax Month - April 2018

The ATO identified some issues with its Superannuation Clearing House, which impacted the processing and crediting of payments to some employee’s super fund accounts, which was rectified by 2 May 2018. Reassurance in relation to super guarantee obligations The ATO has confirmed that employers will be treated as meeting their SGC contribution deadlines, for employee…

NSW land tax: Moore v Chief Commissioner of State Revenue – Lot 2 was exempt from Land Tax, its dominant use was primary production by servicing commercial cultivation on the more dominant Lot 1

Tax Month - April 2018

The NSW Civil and Administrative Tribunal has held that, for land tax purposes, the dominant use of land used to grow sprouts was for primary production. The land in question effectively consisted of Lot 1 (about 500m2) and Lot 2 (about 620m2). Lot 2 contained a warehouse/shed used to store seeds, prepare seeds by washing…

Hart v CofT – attempt to divert trust’s legal practice income through a ‘loss company’ failed – director assessed personally on a ‘present entitlement’ to the income and Part IVA applied – 50% penalties upheld too

Tax Month - May 2018

The Full Federal Court ruled that an attempt to divert law firm earnings (and related earnings) through a lost trust, were ineffective, partly on first principles (as he was ‘presently entitled’ under s97(1) of the ITAA36) and partly because our general anti-avoidance provisions (in Part IVA of the ITAA36) applied to justify the assessment. This case…