State Taxation Acts Amendment Bill 2018 (Vic) – changes to the Duties Act to reverse the ‘Danvest’ partnership interest decision, widen the foreign purchaser definition and other changes – Act No 22 of 2018

On 1 May 2018, the Victorian Treasurer introduced the State Taxation Acts Amendment Bill 2018  into Parliament. Amongst other proposed amendments, there are some noteworthy changes to the Duties Act 2000 (Vic). The Bill passed all stages on 5 June 2018 and received Royal Assent 8 days later on 13 June 2018. The Royal Assent…

GIC rate (8.96%) and SIC (4.96%) rates for the first quarter of 2018-19 – modest increases over the last year

The ATO has released the ‘General Interest Charge’ (GIC) and Shortfall Interest Charge (SIC) percentages for the first quarter of 2018-19, ie July to September 2018: GIC annual rate – 8.96% GIC daily rate – 0.02454794% SIC annual rate – 4.96% SIC daily rate – 0.01358904% FJM 12.6.18 [ATO website: GIC, SIC; LTN 106, 5/6/18; Tax Month – June…

‘Seasonal Workers’ – Commissioner exempts ‘substantial’ employers from having to report under the Div 389 ‘One Touch’ reporting system (see ‘One Touch’ overview, too)

The Taxation Administration – Single Touch Payroll – Exemption for Employers Having a Seasonal Workforce was registered on Tue 5.6.2018. Made under s 389-10(1) of Sch 1 to the TAA, it provides for the ATO to exempt employers with a seasonal workforce from reporting under STP if they have 20 or more employees on 1 April in any year,…

Significant Global Entity definition broadened – to include groups headed by partnerships, trusts and private equity investors ($1b turnover threshold unchanged)

In the 8 May 2018 Federal Budget, the Government announced it would broaden the definition of ‘Significant Global Entity’ (SGE). The $1b turnover threshold will remain the same, but it will no longer be just a group headed by a public company or a private company required to provide consolidated financial statements. Subject to being legislated,…

Early release of super on ‘Compassionate Grounds’ – Commissioner of Taxation becomes the ‘regulator’ on 1 July 2018 (replacing the Chief Executive of Medicare)

On 30 May 2018, the Governor General registered the Treasury Laws Amendment (2018 Measures No 1) Commencement Proclamation 2018, proclaiming 1 July 2018 as the day on which Sch 4 to the Treasury Laws Amendment (2018 Measures No 1) Act 2018 commences. Schedule 4 transfers the regulator role, for early release of superannuation benefits, on compassionate grounds,(under SIS…

Family Law ‘superannuation splitting’ – Determination gazetted, setting 4.9% as the 2017/18 adjustment to the ‘base amount’ split of ‘defined benefit’ and SMSF interests, when ultimately paid to the non-member spouse

On 29 May 2018, the Australian Government Actuary registered the Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2018, on the Federal Register of Legislation. This Determination provides: The interest rate for adjusting entitlements under certain orders or agreements made under the Family Law Act 1975 (Act) and for splitting future superannuation benefits for the adjustment…

Jonshagen v CofT – No extension of time to object against a scheme assessment in the 2000 year – 2nd time round after failing previously in the 1998 and 1999 years

The AAT has affirmed the ATO’s decision, not to grant a taxpayer an extension of time, to object against amended assessments, for the 2000 income year, as the taxpayer was precluded, from objecting, by reason of having entered into a settlement deed, with the ATO. The taxpayer claimed deductions, for management fees, incurred by his…

Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018 – to extend the ‘Small Business Entity’ instant asset write-off, by 12 months, to 30 June 2019 – Senate Committee recommends passing Bill

The Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018 will extend the ‘Small Business Entity’ instant asset write-off by 12 months, from 30 June 2018, to 30 June 2019. The Bill was was introduced in the House of Reps  on 24 May 2018 and on 29 May 2018, the Senate Economics Legislation Committee…

Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Bill 2018 passes Lower House – introducing offences and penalties for ‘sales suppression tools’ and adding ‘cleaning’ and ‘courier’ payments as reportable to the ATO

On 30 May 2018, the Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Bill 2018 passed the House of Representatives, with one amendment, and now moves to the Senate for consideration. The Bill was introduced on 7 February 2018. Schedule 1 – sales suppression tools – of the Bill proposes to prohibit the production,…

Amazon – ‘geo-blocks’ Australians back to its (thinly stocked and uncompetitive) Australian hub rather than have the US pay Australian GST from 1 July 2018

The start of the new legislation, to force overseas suppliers, to pay Australian GST, on supplies of sub-$1,000 goods, to Australians, seems to have backfired, after Amazon announced (on 31.5.18) that it would subject Australian purchasers to a ‘geo-block’ – namely to redirect Australian purchasers, to its new Australian hub, which would pay the GST.…