Yearly Archives: 2021

SA land tax: – Comr of State Taxation v Takhar & Anor – land that didn’t produce a crop for 22 years, was eligible for the primary production land tax exemption, in the year prior to its first crop

The South Australian Court of Appeal agreed, with the Court at first instance, that certain South Australian rural land, was exempt from land tax, under the relevant ‘primary production’ exemptions, when the land produced its first crop, the next year. The taxpayers bought the land 22 years earlier, for primary production, but it had not…

Vic stamp duty – Razzy Australia Pty Ltd & Anor v Comr of State Revenue (Vic) – Commissioner ordered to pay the maximum penalty interest of 10% on refunded duty (not lower market rate)

The Victorian Supreme Court has ordered that interest on refunded stamp duty be paid at the maximum penalty rate under the Supreme Court Act (10%) and not at a lower “market rate” under the Victorian Taxation Administration Act. See below for further details. [Tax Month – July 2021]     In March 2021, in 2 related proceedings, the…

Federal Government regulation to make certain Victorian Covid financial support payments exempt from income tax

The Federal Income Tax law has been amended to allow Covid-19 financial support to be tax free to the recipient, if gazetted as such (s59-97). On 16.7.21, the Treasurer made such a declaration and on Tues 20.7.21, it was registered on the Federal Register of Legislation, citing certain Victorian State relief payments to be exempt.…

As South Australia ‘joins the Covid Lockdown party’ – State and Federal Support Benefits announced (like Vic & NSW)

As South Australia ‘joins the [lockdown] party’, on Tuesday 20 July 2021, the State and Federal Governments announce a combination of State and Federal Covid-19 financial support measures, very similar to those in operation in NSW and Victoria. See below for further detail and relevant links. [Tax Month – July 2021]     COVID-19 disaster…

Superannuation Trustees’ new covenant to develop a strategy for maximising the members’ ‘retirement incomes’ – Treasury releases a ‘Position Paper’ on new law

On Mon 19.7.2021, Treasury released a Position Paper on the proposal, in the 2018 Federal Budget, to extend the SIS Act, so as to introduce a new covenant, binding trustees of superannuation funds to formulate, review regularly and give effect to a retirement income strategy, being a strategic document outlining the trustees’ plan to assist their…

Covid-19 Financial support announced in July 2021 for businesses and workers affected by lockdowns in NSW & Victoria

Last week (15.7.21) the Prime Minister announced details of assistance for workers in NSW and Victoria impacted by the current lockdowns to be jointly funded by the Federal and State governments. The State governments have also announced assistance measures for affected businesses. This article repeats some of what I’ve already posted but has new material…

2018 measures to impose GST on low value imported goods – Board of Tax to review their effectiveness and report by 17 December 2021

On Monday 5.7.2021, the Government announced that it has asked the Board of Taxation (Board) to review the collection of GST on low value imported goods, implemented from 1 July 2018. The review is to ensure the system is operating as intended, its effectiveness and any relevant international developments. The Board is to report back by 17 December 2021. See…

Review of ‘venture capital’ tax concessions – Government releases ‘terms of reference’ on 7 July 2021 for report near end of 2021

On 7 July 2021, the Government has announced the Terms of Reference for its review into the tax treatment of venture capital, to find out if the current tax concessions support genuine early stage Australian start-ups. The review will be undertaken by Treasury and Industry Innovation and Science Australia (IISA). The review, announced in the lead up…

Australia’s ‘Patent Box’ announcement in the May 2021 Federal Budget – Treasury issues ‘Discussion Paper’ on its design and seeks submissions by 16 August 2021

On 11 May 2021 (in the Federal Budget), the Australian Government announced that it will introduce a ‘patent box’ for corporate income associated with patented inventions in the medical and biotechnology sectors. The patent box will apply to companies for income years commencing on or after 1 July 2022 – in relation to patents issued…

CofT v Ross – Assets betterment assessment: ATO and taxpayers both win and matter remitted to the AAT (significant appeal issues considered)

On 9 July 2021, the Federal Court has held that, although the AAT misapplied the principles relating to the onus of proof, placed on the taxpayers, there was a real and substantial risk that the AAT’s ability to assess the issues was impaired. The Court therefore remitted the matter for a re-hearing. The decision has…