Aussiegolfa Pty Ltd (Trustee) v CofT – ATO will not appeal its loss on the superannuation ‘sole purpose’ test and will accept its win on the ‘sub-fund’ being the relevant entity for the ‘in-house assets’ 5% cap issue

Tax Month - October 2018

The ATO will not seek special leave to appeal to the High Court from the decision of the Full Federal Court in Aussiegolfa Pty Ltd (Trustee) v CofT [2018] FCAFC 122. This Tax Technical Article relates to the Full Federal Court’s decision. The ATO’s decision not to appeal was revealed in an ASX announcement by…

Sales suppression software – ATO reminds people of the ban, the transitional relief and their audit experience of abuse using this sort of software

Tax Month - October 2018

The law banning ‘sales suppression software tools’ (Suppression Software) became operative on 4 October 2018 and the ATO posted advice about this on its website, the following day. Then, on 10 October 2018, it posted a more ‘breezy’, shorter and more pointed article. (See related Tax Technical article.) It says that “these tools serve no…

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

Tax Month - October 2018

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

Tax Month - October 2018

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)

Tax Month - October 2018

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

Tax Month - October 2018

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’)

Tax Month - October 2018

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,…

ATO guidance on new ‘electronic sales suppression tools’ bans – characteristics; offences; fines; administrative penalties and transitional rules for possessing such tools

Tax Month - October 2018

The ATO has uploaded a page on its website to give more detail about ‘electronic sales suppression tools’ (Suppression Tools) the Treasury Laws Amendment (Black Economy Taskforce Measures No 1) Bill 2018 banned them from 4 October 2018. (See related Tax Technical article about the passage of that Bill into law.) Characteristics of an ESST The ATO…

Treasury Laws Amendment (Tax Integrity and Other Measures) Bill 2018 becomes law – MAAL extended to foreign trusts and partnerships; additional ‘Small Business CGT Concession’ conditions for CGT events affecting shares and interests in trusts

Tax Month - September 2018

The Treasury Laws Amendment (Tax Integrity and Other Measures) Bill 2018 was passed by the Senate on Thu 20.9.2018 and received Royal Assent on 3 October 2018 as Act No. 124 of 2018. It passed with 2 Opposition amendments to which the House of Reps agreed. It contains the following previously-announced measures: Multinational anti-avoidance law…