Excess Transfer Balance Determinations – ATO will send from January 2018 – guidance for SMSF members and trustees

From January 2018 the ATO will start sending Excess Transfer Balance (ETB) Determinations to individuals who have exceeded their transfer balance cap and not rectified the excess. These will generally be based on information APRA funds will have reported to the ATO. If an SMSF member receives one of these ETB Determinations, remember: If the SMSF trustee must…

Deductible Gift Recipients – changes in regulation including: charity registration; no ‘in Australia’ reform (‘external conduct standards’ instead); report political donations and ‘remediation’ work by environmental organisations

On 5 Dec 2017, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, announced that the Government will reform the administration and oversight of organisations with Deductible Gift Recipient (DGR) status. Referring to the proposed reforms as ‘sensible’, she said that they will enhance the role of the Australian Charities and Not-for-profits Commission…

Digital Currencies ‘financial supplies’ – Treasury Laws Amendment (2017 Measures No 3) Regulations 2017 – to complete the measure giving ‘digital currencies’ the same status as ‘foreign currencies’

The Treasury Laws Amendment (2017 Measures No 3) Regulations 2017 were registered on Mon 4.12.2017 (No. 3 Regulation). They amend  the main GST Regulations, to allow for ‘digital currencies’ (broadly fungible digital units of consideration that are valuable only as consideration – see actual definition below). This change is part the measure announced by the Government in…

Whistleblower Bill introduced into Parliament – strengthening and expanding whistleblower protections but still no ‘bounty’ for successful disclosures

On 13 December 2017, the Australian office of the international law firm: Ashurst, put out the following briefing. The authors were: George Cooper, Partner; James Clarke, Senior Associate; and Lucy Cameron, Graduate. What you need to know On 7 December 2017, the Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2017 was tabled in Parliament. The Bill…

Trump’s US tax reform – not just 20% corporate rate but also proposals for compensating ‘base broadening’ such as denying US deductions for BEPS leakage amounts or US tax on foreigner export profits (with 80% ‘foreign tax credits’)

On 15 Dec 2017, the Tax Institute’s Senior Tax Counsel: Bob Deutsch wrote the following piece, which was included in their Tax Vine publication and also on their website (see below for further details). Also, there is ‘editorial comment’ in [square brackets]. ************* Much has been made of Donald Trump’s proposal to reduce the corporate…

NSW: Residential Premises that are not ‘Dwellings’ – for 8% Surcharge Transfer Duty and 2% Surcharge Land Tax for ‘foreign persons’

On 29 Nov 2017, the NSW OSR issued Revenue Ruling G 011: Surcharge Land Tax and Duty – Residential Premises that are not Dwellings. This ruling gives guidelines to help taxpayers identify the types of premises the Chief Commissioner does, and does not, consider to be ‘dwellings’ for purposes of the following ‘surcharges’ on top of…

OECD Model Tax Convention – latest edition released with significant changes from the OECD/G20 BEPS project (Hybrids, Treaty Benefits, PE avoidance and Dispute Resolution)

On 18/12/2017, the OECD released its latest edition of their Model Tax Convention.This incorporated significant changes developed under the OECD/G20 project to address base erosion and profit (BEPS). The OECD Model Tax Convention, a model for countries concluding bilateral tax conventions,  plays a crucial role in removing tax related barriers to cross border trade and investment. It…

Franking credit rate equals 27.5% if company’s prior year turnover satisfies the new year’s turnover threshold for a 27.5% tax rate – ATO’s guidance

Franking credit rates also reduce, in line with the reductions in the relevant company’s reducing corporate tax rate, which is complex (see related Tax Month article). What follows is the ATO’s summary of how to calculate the company’s franking credit amount, as its corporate tax rate reduces. Calculating the maximum franking credit From the 2016–17…

Reducing the corporate tax rate – ATO’s summary of the relevant law, bills and progressive reduction of the tax rate, to 25%, for all companies by 2026/27

Practitioners will need to be on top of the reductions in the corporate tax rates, which can be confusing. The following is helpful, as it is the ATO’s summary of the relevant Acts and Bills, with the relevant ‘phase in’ dates and thresholds spelt out in tables. On 1 September 2016, the Government introduced Treasury…

Board of Taxations December 2017 meeting – CEO’s report – pipeline of possible projects; Sounding Board; Tax Transparency Code report (120 signatories – 50% of company tax)

The Board of Taxation’s CEO: Ms Karen Payne, reported on the Board’s meeting on Thursday 7 December 2017 (the final meeting for the year). Pipeline of possible projects The Board continued to discuss the scope and content of a number of possible projects, including: A review of small business tax concessions; A comparison of the…