*SCCASP Holdings as trustee for the H&R Super Fund v FCT – Trust distribution of capital gain held to be “special income” derived by SMSF [60]

The Federal Court has held that a resolution to distribute a $14m capital gain from a family trust was “special income” derived by a self-managed superannuation fund (SMSF) in the 2004 tax year under former s 273(6) of the ITAA 1936. The taxpayer, as trustee of the SMSF, sought to distinguish the finding in Allen…

*Re Sinclair and FCT – Early access to superannuation benefit included in taxpayer’s assessable income but 25% penalty remitted [59]

The AAT has upheld the Commissioner’s decision to include a superannuation benefit in a taxpayer’s assessable income under s 304-10 of the ITAA 1997 on the grounds that it was withdrawn in breach of the SIS Act. In 2008, the taxpayer (age 40) signed a form requesting his retail superannuation fund to rollover $40,000 of…

*Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 – entry fees banned; intra-fund advice cost limited; life insurance on a opt-out basis; and can’t charge fees paid to adviser [58]

The Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 was introduced into the House of Reps on Wed 19.9.2012. This third tranche of MySuper legislation will implement further reforms to complement the Government’s low-cost default superannuation product (MySuper), generally from 1 July 2013. Broadly, the Bill will introduce measures relating to superannuation fees,…

*Addendum to MT 2010/1 – for the International All Sports & Anor v FCT decision – s105-65 can’t restrict GST refunds when the supply hasn’t been mis-classified [54]

The ATO Wed 19.9.2012, issued an Addendum to Miscellaneous Taxation Ruling MT 2010/1 (Restrictions on GST refunds under s 105-65 of Sch 1 to the TAA) to reflect the Federal Court’s decision in International All Sports & Anor v FCT (2011) 81 ATR 607. In that case, the Federal Court held that the global GST…

*New Bills will give tax relief for merging super funds; will require SMSF auditors to register with ASIC to audit; will require greater reporting each year; and increase the quality of data [57]

The Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Bill 2012 and Superannuation Auditor Registration Imposition Bill 2012 were introduced into the House of Reps on Wed 19.9.2012. Key amendments proposed by the Bills include: Merging superannuation funds – the Bills will reinstate the temporary loss relief and asset roll-over in Div…

*Trans-Tasman superannuation portability: draft legislation released, but limits in Australia on Super transferred from NZ [56]

The Government on Tue 18.9.2012, released draft legislation proposing to establish a trans-Tasman superannuation portability scheme to permit the transfer of retirement savings between certain Australian superannuation funds and New Zealand KiwiSaver schemes from 1 July 2013. The draft legislation implements the tax treatment of superannuation transferred under the proposed scheme. Currently, Australians and New…

*Electronic portability request scheme for super benefits: draft regs [55]

Treasury has released for comment draft regulations which propose to amend the SIS regs and the RSA regs to support the operation of an electronic portability request scheme for superannuation benefits. Broadly, under the proposed amendments, superannuation fund members and RSA holders will be able to electronically request the roll-over or transfer of their benefits…

*Second tranche of the ‘Stonger Super’ (MySuper and governance) reforms receive Royal Assent on 8 September 2012 [54]

The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 received Royal Assent on 8 September 2012 as Act No 117 of 2012. It had passed all stages without amendment and contains the 2nd tranche of legislation for the Government’s Stronger Super (MySuper and governance) reforms.

[LTN 176, 11/9]

*Decision Impact Statement in ECC Southbank case – GST and commercial residential premises for student accommodation [53]

The ATO on Fri 28.9.2012, released a Decision Impact Statement on the Federal Court decision in ECC Southbank Pty Ltd as trustee for Nest Southbank Unit Trust & Anor v FCT [2012] FCA 795. The Federal Court held that a sub-lease of student accommodation was a supply of commercial premises and that supplies of accommodation…

*Decision Impact Statements on Tribunal case for input tax credits on second hand aircraft [52]

The ATO on Mon 17.9.2012, issued the following Decision Impact Statements: – In those cases, the AAT affirmed the Commissioner’s objection decisions disallowing the taxpayer’s objections to private rulings denying GST input tax credit (ITC) claims for second-hand aircraft acquired before 1 July 2000. Broadly, the ATO said in its that AAT Case [2012] AATA…