Amounts which Division 7A would deem to be a dividend, will avoid that result, if they are recorded as a s109N complying loan, prior to the private company lodging its return, for the year in which the payment, or loan, was made to the shareholder/associate. There is a minimum interest rate for such loans, known…
On 15 June 2021, Scott Morrison and Boris Johnson (Scomo and Bojo) agreed on the core terms of an incredibly important Free Trade Agreement between Australia and the UK. The new Agreement will see consumers in both markets benefit from cheaper goods, while farmers, winemakers and young people looking to live abroad will have greater…
Late last year (2020), Parliament passed legislation providing for ‘temporary full expensing’ of capital amounts incurred on depreciable assets used, or held ready for use in COVID affected years. Of recent, the Commissioner has issued a form of ‘public ruling’ known as ‘Law Companion Rulings’ to support the introduction of new legislation. The Commissioner has…
‘Research and Development’ (R&D) tax concessions involve a two step process – first to get the project registered with the Industry Innovation and Science Australia (IISA) as R&D and then to claim the concessions with the ATO, both of which involve separate appeals. The Board of Taxation is investigating the wisdom of this ‘dual-agency’ approach. See…
Tax practitioners not already authorised, with the ATO, as a agent for a taxpayer (typically legal practitioners) have 2 particular problems when acting for taxpayers attempting to forestall ATO collection proceedings, which are being addressed by the Law Council of Australia tax committee. See below for an extract of a meeting agenda item relating to…
On Thursday 24.6.21, the Press reported that Deloitte had settled the action, against it, by a partner who alleged they required him to retire as a partner – entitling him sue for unlawful age discrimination. I reported on in an earlier TT article. It was a test case as important, in my opinion, as the…
For the financial year ended 30 June 2021 (2020-21 financial year) this article surveys: claiming the ‘Temporary full expensing’ deductions or the Backing Business Investment accelerated depreciation deductions; the need for an extension of ATO guidance, to ‘unpaid present entitlement’ sub-trust arrangements, maturing in the 2020–21 income year (broadly that a Div 7A, s109N complying loan agreement can satisfy…
The Treasury Laws Amendment (Your Future, Your Super) Bill 2021 has passed both houses of Parliament making changes including: “stapled” single default accounts, a best “financial” interests duty for trustees and APRA benchmark testing of investment performance. See related TT article about the detail in this Bill. See below for further details about the Bill…
On Thursday 17.6.2021, the Bill that increases the maximum number of allowable members, from 4 to 6, in new and existing SMSFs and small APRA funds, passed both houses of Parliament, without amendment. See below for further detail. [Tax Month – June 2021] The Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020…
On 17 June 2021, Parliament passed legislation extending the ‘bring forward’ age limit to 65 and 66 (ie under age 67) for non-concessional contributions (announced in the 2019-20 Federal Budget). The legislation was also passed with Senate amendments relating to re-contributing amounts withdrawn from super funds, as a COVID relief measure, and repealing the ‘Excess Concessional…