John Morgan is a tax specialist lawyer of more than three decades experience now practicing at the Victorian Bar - w: www.FJMtax.com e: f.john.morgan@vicbar.com.au

Dezfoolian v CofT – Interest derived overseas assessable – exchange rate questions and forex losses in subsequent years

On 29 Oct 2021, the AAT decided that Interest earned on a foreign bank account was assessable as the taxpayer was an Australian resident (and this was published on 2.11.21). This is unremarkable but the facts were complicated by ‘exchange’ date/rate issues (on the interest receipts) and exchange rate losses on the loan balances. The…

Addy v CofT – High Court rules “backpacker tax” does not apply to UK national who is Australian tax resident – ATO loses

The High Court has held, on Wed 3.11.2021] that applying the so-called “backpacker tax” to wages earned by a UK national who was a tax resident of Australia contravened a non-discrimination clause in the Australia-UK DTA, thereby allowing the taxpayer’s appeal (see related TT article). Ms Addy was a UK national who arrived in Australia…

Addy Case – High Court finds for Taxpayer, striking down the higher ‘backpacker tax’ under the UK-Aust DTA requirement not to discriminate based on nationality

On 3 November 2021, the High Court of Australian held for the taxpayer, in finding that the ‘Backpacker Tax’ contravened the ‘no-disadvantage’ requirement, for British nationals, under the Australian-United Kingdom Double Tax Agreement. The taxpayer was an Australian tax resident for the two years of her working holiday, under the relevant visa, and as a…

Victorian Pandemic Bill causes major concern and misrepresents consultation with the Victorian Bar (not tax but … )

Over the past 24 hours, the Victorian Bar has become aware of a bill to amend the Public Health and Wellbeing Act 2020 (PHW Act) in respect of, amongst other things, pandemic management. The Public Health and Wellbeing Amendment (Pandemic Management) Bill 2021 (Bill) has been made available on the Parliament of Victoria website only this…

House of Reps Committee’s report into ATO administration – includes recommendations for some interesting tax law changes

On Tuesday 26.10.2021, the House of Representatives Standing Committee on Tax and Revenue released a report entitled 2018-19 Commissioner of Taxation Annual Report. The terms of reference were that the Committee was to inquire into and report on the ATO’s 2018-19 Annual Report – however, the report’s recommendations are focused on the administration of the…

New Victorian tax – 50% ‘windfall gains tax’ on rezoning – up to 100% deferrable for up to 30 years – secured as a first charge on land

Windfall Gains Tax and State Taxation and Other Acts Further Amendment Bill 2021   Victoria Legislation 12/10/2021   On Tues 12.10.21, the Victorian Treasurer issued a media release summarising the Bill he was about to introduce to enact the proposed windfall gains tax. It also summarised the Bill. It will (broadly) be a 50% flat tax on…

Victoria: ‘Build to Rent’ – 50% land tax and other concessions extended – developments finished by 31 Dec 2031

On 12.10.21, the Premier of Victoria issued a media release extending and modifying previously announced measures to encourage investment in rental properties. Eligible Build-to-Rent developments completed and operational between 1 January 2021 and 31 December 2031 will receive both the 50% land tax discount and full exemption from the Absentee Owner Surcharge (AOS) for up to 30 years from…

Board of Taxation’s (BoT) review of the application of the ‘new’ GST measures applying to low-value imported goods – GST Committee reflects

  BoT review of GST on low-value imported goods On 5 July 2021, the Federal Government announced that the BoT would undertake a review of the application of GST to low-value imported goods; rules that have been in place since 1 July 2018. Consultations took place in August and September of this year and the…