The Unexplained Wealth Legislation Amendment Bill 2018 was introduced into the Lower House on 20 June 2018 and was referred to the Senate Legal and Constitutional Affairs Legislation Committee on 28 June 2018, for inquiry and report by 6 August 2018 (the Bill is still before the House of Reps). It proposes to amend the Proceeds of Crime…
On 9 July 2018, the Inspector-General of Taxation (IGT), Ali Noroozi, confirmed he will not be seeking reappointment for a third term. In his 10 years as Inspector-General of Taxation Mr Noroozi has undertaken over 30 reviews of issues including ATO debt collection, tax disputes, audits, transfer pricing, services to tax practitioners, taxpayer rights, IT…
Australian indirect tax budget update for 2018 – stamp duty, payroll and land tax Authors: Barbara Phair, Partner, Sammuel Dobbie-Smith, Graduate, Georgia Monaghan, Graduate. – Ashurst Lawyers Following the NSW State Budget’s release on 19 June 2018, all of the State Budgets (other than in South Australia) have now been handed down. The South…
The Australian Taxation Office (ATO) has just released its much-anticipated Taxation Ruling on central management and control test of residency. TR 2018/5 covers the circumstances in which a foreign-incorporated entity may be an Australian tax resident, together with draft Practical Compliance Guideline (PCG 2018/D3). This follows the High Court’s recent decision in the Bywater case…
On 9 July 2018, the Board of Taxation (BoT) made public its August 2017 report to the Government, Review of the Income Tax Residency Rules for Individuals. on the same day, Minister for Revenue: Kelly O’Dwyer requested that the Board of Taxation undertake further consultation with regard to its recommendation to introduce a new set of…
A taxpayer has been successful before the Federal Court when it argued that interest on overpaid GST accrued from the day on which the GST ‘surplus arose’ under the relevant definition: ‘RBA interest day’ s12AA, s12AD & s12AF of the Taxation (Interest on Overpayments and Early Payments) Act 1983 (Overpayments Act). This sounds boring, but…
On 5 July 2018, the NSW Commissioner of State Revenue issued Commissioner’s Practice Note No CPN 004 on Foreign surcharges and discretionary trusts. It applies from 21 June 2016 and outlines how surcharge purchaser duty and surcharge land tax will be applied in certain situations where land is held by a discretionary trust. CPN 004 further expands…
The ATO has released the repayment thresholds and rates for 2018-19 for the compulsory repayment of Higher Education Loan Program (HELP) debts and Student Financial Supplement Scheme (SFSS) debts. HELP repayment thersholds and rates 2018-19 Repayment income* Repayment rate Below $51,957 Nil $51,957 – $57,729 2% $57,730 – $64,306 4% $64,307 – $70,881 4.5% $70,882…
In July, the CEO of the Board of Taxation released her July 2018 Update. The Board held meetings in Canberra on 25 May 2018 and in Melbourne on 5 July 2018. At these meetings, the Board discussed the progress and direction of its current projects, including: Post implementation review of contingent consideration rules (earn-out arrangements). A review of small…
The ATO issued a Determination (F2018L01023) on Wed 11.7.2018, to increase the cents per kilometre deduction rate to 68c/km (up from 66c/km) for claiming work-related motor vehicle expenses for income years commencing from 1 July 2018 – under Div 28 of the ITAA97. The Determination is the legislative instrument, provided for in s28-25(4). After changes to the…