Labor would give employees a right to chase their own super and increase ‘fines’ for under-reporting to the ATO

Key News Summary – a Labor government would change the laws to give employees a legal right to collect their own superannuation and the Commonwealth the right to impose fines of 10% and 300% of un/under paid superannuation contributions, if there are misleading statements or under-reporting to the ATO (respectively)   On 16.12.18, the Shadow…

Redundancy and early retirement scheme payments – Change to extend the current 65 age cap to match Age Pension eligibility

Key News Summary – the Treasurer announced an extension of the age, up to which an individual can get the tax-free portion of ‘genuine redundancy payments’ and ‘early retirement scheme’ payments. The age will be extended to match the increasing age threshold for the Age Pension.   On 15.12.18, the Treasurer announced a change to…

Reform of the PRRT – uplift rate for expenditure and removing ‘onshore’ projects – draft legislation

Key News Summary – On 14.12.18, the Government release draft legislation to reform the PRRT, (i) lower the uplift rates from LIBOR+15% points that apply to certain categories of carried-forward expenditure, to LIBOR+5% points, from 1 July 2019; and (ii) remove onshore petroleum projects from the scope of the PRRT.   The PRRT is a profit-based…

Corporate tax transparency report for the 2016–17 income year for public companies $100m turnover; private $200m

Key News Summary – the Commissioner has released the 4th Corporate Tax Transparency Report, for the 2016-17 year showing 2019 entities, with overall  increases in all of total income, taxable income, tax payable and the number of entities. 14 entities pay the PRRT and 20% to 30% of the ASX 500 report current year losses.  …

Queensland Maintenance Services case – AAT found ‘renovation compensation’ and ‘management fee’ expenses were not deductible

Key News Summary – In Queensland Maintenance Services Pty Ltd (In Liquidation) v FCT, the AAT found that the Commissioner was right to disallow general deductions, under s8-1 of the ITAA97, for ‘renovation compensation invoices’ because of curious facts affecting purpose and ‘management fee expenses’ because they were to buy the right to manage the…

APRA finalises new measures to strengthen outcomes for superannuation members

On 12 December 2018, the Australian Prudential Regulation Authority (APRA) released a package of new and enhanced prudential requirements designed to strengthen the focus of registrable superannuation entity (RSE) licensees on the delivery of quality outcomes for their members. A central component of APRA’s new framework is the introduction of an outcomes assessment that will…