Daily Archives: September 19, 2021

MySuper default insurance and occupational exclusions – some members not covered : Treasury consultation paper

Treasury has released a consultation paper on its review into occupational exclusions in default insurance offered through MySuper products. The review will focus on default cover in respect of life and total and permanent disability (TPD) insurance which trustees are required to provide to MySuper members. The Government has expressed concern that occupational exclusions may result in default insurance…

Super COVID-19 re-contributions allowed from 1 July 2021 – ATO approved form finalised

The ATO has finalised its approved form to be used by individuals to notify their super fund of re-contributions of COVID-19 early release amounts. Since 1 July 2021, individuals have been able to re-contribute super amounts they withdrew under the COVID-19 early release program without them counting towards their non-concessional contributions cap. The ATO approved form (NAT 75394) only…

IGTO’s survey results on ATO communication of taxpayers’ rights – 60% unaware of ‘ATO Complaints’

The Inspector-General of Taxation and Taxation Ombudsman (IGTO) has released its survey results into the effectiveness of the ATO’s communication of taxpayers’ rights to complain, review and appeal decisions or actions. The survey was conducted between August and September 2020 with participation from taxpayers and tax professionals. Key take-aways include: the majority respondents confirmed that the ATO regularly communicates taxpayer’s right…

IGTO’s IGoT News! edition 17 released – reporting tax debts to credit bureaus, undisputed tax debts (and more … )

The Inspector-General of Taxation and Taxation Ombudsman (IGTO), Karen Payne, has released edition 17 of the IGTO’s newsletter – “IGoT News”. This edition provides: a summary of IGTO’s website “refresh” and improvements; a summary of the ATO’s approach in reporting business tax debts to Credit Reporting Bureaus, which commenced in August 2021; confirmation from the ATO that a practitioner’s…

TPB – Federal Court injunction to stop unregistered tax agent practising

The TPB has released a media release stating that the Federal Court, following the TPB’s application, has ordered an unregistered tax agent to stop preparing and lodging income tax returns while not a registered tax agent with the TPB. The unregistered tax agent is alleged to have illegally charged clients fees to lodge returns on their behalf.…

IGTO’s report on ATO’s JobKeeper enrolment deferral decisions – should have applied the ‘fair and reasonable threshold’ (not ‘exceptional circumstances’)

The Inspector-General of Taxation and Taxation Ombudsman (IGTO) has released its latest report in the investigation of the ATO’s administration of JobKeeper enrolment deferral decisions. The IGTO has investigated at least 20 taxation complaints (to date). Initially (up until around April 2021), the IGTO investigations did not observe the ATO applying the ‘fair and reasonable threshold’, as…

TA 2021/2 – Disguising undeclared foreign income as gifts or loans from related overseas entities

The ATO, on Fri 17.9.2021, issued taxpayer alert TA 2021/2: Disguising undeclared foreign income as gifts or loans from related overseas entities. The Alert highlights the ATO’s concern where Australian-resident taxpayers derive income or capital gains offshore (foreign assessable income) but fail to declare it in their Australian income tax returns. [Assuming the worst, but how…

NSW land tax: NSW Commissioner v McIntosh Bros Pty Ltd (in liq) – land used for primary production exempt – despite 4 uses by independent persons with meagre profits

On 16 September 2021, the NSW Supreme Court, Court of Appeal held that a taxpayer, who owned land, was exempt from NSW land tax, based on the ‘primary production’ tests – in circumstances where there were there were a number of different uses, by different persons, one of which included agistment, with the ‘commerciality’ and…