Mercer Superannuation (Australia) Limited v Billinghurst – Trustee’s duty is to member (not retiring employer) – ‘transfer value’ of of defined pension benefit as ‘indexed’ – SCT decision upheld

The Full Federal Court has dismissed an appeal by a trustee of a superannuation fund in relation to the lump sum equivalent value of a lifetime pension to be paid to a defined benefit member upon the termination of an employer-sponsored superannuation plan. The respondent (Mr Billinghurst) had commenced receiving a lifetime pension of $98,780pa…

DCT v Arico (No 2) – Victorian Supreme Court refused stay of collection proceedings for $2.1m in unpaid tax and refused to vary freezing orders to allow borrowings for legal fees (not full or frank disclosure about assets)

In a lengthy decision handed down on Tue 12.12.2017, the Victorian Supreme Court has refused husband and wife taxpayers an application to stay judgment against them for outstanding tax assessments totalling over $2 million. The Deputy Commissioner of Taxation (DCT) sought judgment against the first defendant in the sum of $1.061 million and against the second…

GST-free status of certain tertiary courses continued by Minister making a 2017 under the definition of ‘education course’ in the GST Act

The Minister for Social Services registered a A New Tax System (Goods and Services Tax) (Tertiary Courses) Determination 2017 on Mon 11.12.2017 on the Federal Register of Legislation. Section 38‑85 of the GST Act provides that the supply of an education course and administrative services directly related to the supply of such a course (if they are supplied…

SA: Foreign Investor Surcharge (on transfer duty) – increased from 4% to 7% from 1 January 2018

The Stamp Duties (Foreign Ownership Surcharge) Amendment Bill 2017 has now passed all stages of the SA Parliament without amendment and awaits Royal Assent. The Bill amends the Stamp Duties Act 1923 (SA) to introduce the Foreign Investor Surcharge, which was originally included in the defeated Budget Measures Bill 2017, and increase it from 4%…

Vic: SRO explains the ‘Vacant Residential Land Tax’ – noting the 15 January 2018 deadline to report land vacant for more than 6 months in calendar 2017

The Victorian State Revenue Office (SRO) has reminded people that homes left unoccupied for more than 6 months in 2017, which are located in 16 of Melbourne’s inner and middle council areas (see FAQ), may attract vacant residential land tax. Owners of a property in one of the affected council areas that was unoccupied for 6 months…

Carr v CofT – Federal Court refuses to remit the AAT decision on Default Assessments back to the AAT (taxpayer hopelessly unprepared in the AAT)

The Federal Court has dismissed a taxpayer’s claim to have a default assessment matter remitted to the AAT for rehearing. In April 2012, the Commissioner issued default assessments under s167 of the ITAA 1936 to the taxpayer based on his failure to lodge returns in respect of the 2003, 2004, 2005 and 2006 income years. In total,…

Searching for edited versions of ‘private binding rulings’ – ATO explains and consults on proposed changes

On 11 December 2017, the ATO included the following guidance, on its website. We’re changing where we publish edited versions Edited versions of written binding advice are now available on the ATO legal database. We’re consulting on the relocation – you can provide your feedback by visiting our Public advice and guidance communityExternal Link on…

Ferozkohei v CofT – Taxpayers fail to prove claim various rental property deductions as relevantly incurred or not incurred at all

In 2 separate AAT decisions, a married couple was unable to prove their claims for various rental property deductions. The couple claimed deductions in the 2013 income year in respect of 6 rental properties in Sydney they owned jointly. Before the AAT, the outstanding issues were deductions for interest ($84,986 each), capital works ($1,874 each)…

Waubra Foundation v ACNC Commissioner – Revocation of charity status for ‘wind noise’ prevention – not for “promotion of the prevention or control as diseases” or “protecting human rights”

In a lengthy case, the AAT has affirmed the Commissioner’s decision to revoke registration of a charity in relation to subtypes 7 (protecting human rights) and subtype 13 (health promotion charity). Under the ACNC Act and Charities Act, the taxpayer was registered as an entity for advancing health (Item 1), entity for promoting or protecting…