Yearly Archives: 2018

GST withholding by purchasers on the sale of ‘new residential premises’ – deferral in start date beyond 1 July 2018 required given delay in introducing (much less passing) the draft bill

The Government is proposing to introduce a system under which purchasers of ‘new residential property’ will have to withhold 1/11th of the purchase price and remit it to the Commissioner on account of the Vendor, who retains the liability to pay the tax. The proposed start date is for supplies on or after 1 July…

ATO annual SMSF statistics – 99.6% of all funds; 30% of $2.3t super assets; member balances grow; 4% of assets are LRBA funded

On 18 January 2018, the ATO released its latest statistics on the self-managed super fund (SMSF) sector with the publication of the annual Self-Managed Superannuation Funds: A Statistical Overview 2015-16. Assistant Commissioner Kasey Macfarlane said the annual overview data shows that the sector continues to grow, with positive returns on assets and increasing fund and member…

GST digital currency conversion – draft determination under s9-85(2) issued to commence on 1 July 2017 with the ‘digital currency’ amendments

On Thursday 18.1.2018, the Commissioner released a draft of the ‘Legislative Instrument’, that the new s9-85(2) of the GST Act contemplates the Commissioner will make, to specify the way in which digital ‘consideration’, for a taxable supply can be converted into Australian currency, and thus create a tax liability (in our currency). The ‘digital currency’ amendments to the…

WLQC v CofT- AAT held it did not have jurisdiction to review ‘nil assessments’ of various Group companies (both before and after the 2005 amendments) as part of its claim to be ‘consolidated’ for tax purposes

The AAT has held that it did not have jurisdiction to review certain 2004 and 2005 ‘nil assessments’ of various applicant’s who were all members of a group of companies (Group) involved in the broadcasting industry. This application for review was part of a much larger dispute, that the Group had, with the Commissioner, going…

FOI disclosure of Treasury ‘dividend washing’ opinion/briefing – gives insight into the s177EA uncertainty (whether it would disallow the franking credit on the 2nd dividend)

On 12 January 2018, Treasury has released an historical document, under an FOI request, which discusses the potential application, of s 177EA of the ITAA 1936, to a type of “dividend washing” arrangement, which depended on selling shares ex-dividend, and buying another parcel ‘cum-dividend’, during a 2 day Australian Stock Exchange (ASX) trading window, for shareholders to…

Call to remove the ‘active member test’ from the definition of ‘Australian Superannuation Fund’ – so travelling members can continue to contribute to their SMSF – SMSF Association

On 16 January, 2018, the SMSF Association called for the ‘active’ member test to be excluded from the residency requirement for ‘complying’ fund status and all the concessional tax treatment, that goes with that status. This ‘active member test’ is important in various ways. For instance, deductions are only available, for  employer contributions, to a ‘complying…

Sandbach v CofT – barrister’s Federal Court appeal struck out ‘for want of prosecution’ – more or less from the inception of the appeal

The Full Federal Court dismissed the taxpayer’s appeal from a decision of the Federal Court to dismiss his appeal (from an AAT decision) for want of prosecution. The Taxpayer was (and still is) a member of the Victorian Bar. The events were as follows: In 1986, the Taxpayer entered into a partnership to purchase an…

Vic Land Tax Surcharge – Treasurer’s guidelines gazetted for exemption of ‘absentee persons’ controlling interests in ‘absentee corporations’ and beneficial interest in ‘absentee trusts’

Victoria has enacted an ‘absentee’ owner land tax surcharge of 1.5% on land owned by ‘absentee persons’, which include: ‘absentee individuals’; ‘absentee corporations’ and ‘absentee trusts’. This is under the Victorian Land Tax Act 2005 (the ‘Act‘). Victoria has also enacted a land transfer duty surcharge, for foreign persons, with similar provisions, definitions and exemptions.…

Vic: Comr of State Revenue (Vic) v Danvest Pty Ltd & Anor – purchase of interest in land-owning partnership not liable for duty – partnership interest was personalty (not, relevantly, an ‘interest in land’)

The Victorian Court of Appeal has dismissed an appeal by the Commissioner of State Revenue and ruled that the sale and purchase of a partner’s interest in a land-owning partnership was not a “transfer of dutiable property”  because a partner’s interest in a land-owning partnership is not an ‘interest in’ an ‘estate in fee simple’ in…

Superannuation Taxation Integrity Measures – Outstanding LRBA balance added to Member’s total benefit & NALI extended to non-arm’s length payments

On 11 January 2018, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, released for public consultation draft legislation and a consultation paper entitled ‘Superannuation Taxation Integrity Measures’. [See her media release] On the same date, Treasury uploaded a consultation page, with following documents. A Superannuation Integrity Measures (Consultation Paper). Treasury Laws…