Daily Archives: October 12, 2018

PCG 2018/6 – GST: ‘swim between the flags’ guidance on an inbound tour operator (travel agent) acts as an ‘agent’ for the Australian Product Provider (eg. hotel operator) – so their profit is GST-free

On Wed 10.10.2018, the ATO issued Practical Compliance Guideline PCG 2018/6 on when compliance resources will not be applied to check whether an inbound tour operator is acting as an agent for GST purposes. This is ‘swim between the flags’ guidance and is finalising the draft PCG 2018/D7 (see related Tax Technical article). This is…

LCR 2018/7 – explains the s26-31 ban on deducting residential rental property travel expenses for other than for companies etc. and other than in carrying on a business

On Wed 10.10.2018, the ATO issued Law Companion Ruling LCR 2018/7 on non-business travel costs incurred in relation to residential rental properties. From 1 July 2017, individuals, SMSFs and “private” trusts and partnerships can no longer deduct such costs (s 26-31 ITAA 1997). The ruling provides guidance on the meaning of key terms in s 26-31, and on…

Tax treatment of compensation paid to individuals from financial institutions for faulty advice or improperly charged fees, etc. – Commissioner posts guidance on website (in light of the Hayne Royal Commission into the Financial Services Industry)

With the Hayne Royal Commission into the financial services industry in full swing, exposing significant misfeasance in the Banking, insurance, financial advice and superannuation sectors, there is much talk of the compensation being paid or accelerated. With this in mind, on 8 October 2018, the ATO posted an advice page, on its website, about how…

ASIC recommends SMSF policy reforms – Answers to questions on notice to the Parliamentary Joint Committee on Corporations and Financial Services

ASIC has put forward a range of policy solutions for self-managed super funds (SMSFs) to be considered by the Parliamentary Joint Committee on Corporations and Financial Services. In response to Questions on Notice following the ASIC Oversight hearing on 17 August 2018, ASIC said the following policy solutions could be considered by the Committee in terms of: Member…

‘Feminine hygiene products’ to be GST-free – consultation on the definition (removing the ‘tampon tax’)

On 8 October 2018, Ministers: O’Dwyer (for Women), Hunt (for Health) and Freidenberg (Treasurer) announced the Government is getting on with the job of removing the Goods and Services Tax (GST) on feminine hygiene products, following the State Treasurers approving this change in the GST base. The proposed definition, which includes tampons, pads and cups,…