The Federal Budget papers contained the the tax rates for resident, non-resident, and working holiday makers, in the coming 2022-23 year and subsequent years (without flagging any reversal of the currently legislated ‘Stage 3’ tax cuts – which deliver a 30% tax rate from $45k to $200k of income. At the same time, the Government…
On Tuesday 8 May 2023, the Federal Treasurer brought down the Government’s budget for the 2023-24 financial year, which included a number of tax and superannuation related announcements and macro-economic data and forecasts. Macro-economic overview A Budget surplus of $4.2bn is forecast in 2022-23, but an underlying cash deficit of $13.9bn is expected in 2023-24…
In their weekly email: TaxVine [16, 12.5.23], The Tax Institute announced their Federal Budget Report and provided a shorter summary. The Budget contained a greater number of measures compared with the budgets of recent years. However, most of these measures are limited in their scope and commonly lack the level of detail needed to better understand their impact…
T a x T e c h n i c a l – M o n t h l y N e w s – May 2023 Edition – ‘Tax Developments’ for tax practitioners by a tax practitioner. Compiled by F John Morgan A member of the Victorian Bar (www.FJMtax.com) Table of Contents ______________________________________________________________________________ COMPILING…
On 24.4.23, the ATO issued a ‘Decision Impact Statement‘ on the effect of the Full Federal Court case of CofT v Guardian AIT Pty Ltd atf Australian Investment Trust [2023] FCAFC 3. This appeal was watched closely, as it involved the ‘Trust Stripping’ anti-avoidance provision” s100A of the ITAA36, which is rarely litigated. At first instance…
In The Tax Institute’s weekly TaxVine email (No.6, 1.3.23), Kym Bailey, CTA, Technical Services Manager at JBWere, and Chair of their National Superannuation Technical Committee, discusses the recent Government consultation on legislating a statement of the ‘objective’ of superannuation. Superannuation appears to be in the sights, of the Treasurer, with a clear indication, that he…
In The Tax Institute’s TaxVine email [No.5, 24.2.23], their Tax Policy and Advocacy team reviews the application of section 100A of the Income Tax Assessment Act 1936 (ITAA1936) in light of the finalised ATO guidance and recent cases. The end of the income year is approaching quickly. Practitioners and trustees will shortly be required to determine…
In The Tax Institute’s TaxVine [No.4, on 17.2.23], their Tax Policy and Advocacy (TPA) team explain the ATO’s position on claiming deductions for working from home (WFH) expenses following the release of Practical Compliance Guideline PCG 2023/1 this week. The updated guidance replaces draft Practical Compliance Guideline PCG2022/D4 and details the revised fixed rate…
In The Tax Institute’s TaxVine email [No.3, 10.2.23], their Tax Counsel, Julie Abdalla, FTI, examines the draft ATO guidance on the characterisation of workers as employees or contractors, following the High Court decisions in 2022. Relevance of the ‘employee or contractor’ distinction The ‘employee or contractor’ distinction pervades both federal and state laws…
In this article, Braith Morrow – Head of Advice, at First Samuel Limited, explores some of the misconceptions and key failings of superannuation. Whilst we maintain a positive view of superannuation on the whole, it’s important to understand its limitations and to take them into consideration in your holistic approach to the creation, consumption and eventual…