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

*Carbon Tax – Bills introduced to link carbon price with EU and to remove the price floor [67]

A package of 7 Bills was introduced in the House of Reps on Wed 19.9.2012. The Bills make amendments that cover: arrangements to facilitate the linking of Australia’s carbon pricing mechanism to other countries’ emissions trading schemes, including the EU ETS; the removal of the price floor and repeal of the Clean Energy (International Unit…

*30% super contributions tax for taxpayers above $300,000 – extra 15% to be levied on the individual – per ATO [64]

The ATO Assistant Commissioner Superannuation, Stuart Forsyth, said that the proposed increase in the superannuation contributions tax for high income earners is likely to be levied on the individual (rather than at the fund level). This was at a keynote address to The Institute of Chartered Accountants in Australia National SMSF Conference in Sydney on…

APRA announces consultation on increased reporting requirements for the superannuation funds it regulates [63]

APRA on Wed 19.9.2012, released for consultation a discussion paper outlining its proposed revised reporting requirements for APRA-regulated super funds. The consultation package includes 31 draft reporting forms and instructions. APRA said the package outlines a substantially larger data collection than is currently in place for the superannuation industry. APRA’s proposed reporting requirements implement the…

Superannuation Roundtable agrees on better promote the small business clearing house [62]

The Minister for Financial Services and Superannuation on Fri 7.9.2012, announced that in the fourth meeting of the Superannuation Roundtable, the representatives have agreed to a proposal to better promote the Government’s small business clearing house. Mr Shorten said the Government’s super clearing house reduces red tape for around 32,000 small businesses (usually with between…

*DIS – Senior public servants not senior enough to escape Superannuation Surcharge on constitutional grounds established in Clarke [61]

The ATO has issued Decision Impact Statements on the following cases: – in these cases, the AAT basically confirmed that AAT Case [2012] AATA 451, Re Walsh and FCT; AAT Case [2012] AATA 452, Re Wilson and FCT; AAT Case [2012] AATA 453, Re Bridge and FCT3 senior South Australian public servants were personally liable…

*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,…