Further insolvency reforms – insolvent trusts, insolvent trading ‘safe-harbour’; moratoriums whilst negotiating schemes of arrangement; and increase in ‘statutory demand’ threshold

On 3 May 2021, the Treasurer announced further insolvency law reform involving how trusts are treated, the ‘insolvent trading safe-labour changes and a moratorium on collection actions whilst a scheme of arrangement is in force. It will also increase the size of the debt, that can trigger a ‘statutory demand’ for payment (on pain of…

2021-22 Budget: Treasurer “committed to” Stage 3 tax cuts (30% out to $200k) and excise refund cap to be tripled to $350k, for small brewers and distillers

In the lead up to the 11 May 2021 Federal Budget, the Treasurer announced that the current income tax rates would remain until 2024/25, when the ‘Stage 3’ extension of the 30% rate, would apply all the way up to $200,000. He also signalled that small scale brewers and distillers would have their excise cap…

Business backs Frydenberg’s ‘Sensible’ proxy advice measures – Proxy advisers associated with Super Funds squealing about the need to be independent

The Treasurer recently announced (see related TT article) consultation on measures to make proxy advisers more accountable for their advice and super funds more accountable for how they exercise that advice (at company shareholders meetings). There has been a war of words between the Companies, the subject of that advice and the advisors complaining about…

Proxy advisers and super funds to be more accountable for advice given and resulting voting decisions – Government proposals and Consultation Paper released

On 30 April 2021, the Treasurer announced that Treasury would consult on the Governments proposals to increase ‘transparency and accountability’ in the way proxy advisers give advice to super funds about how superannuation funds exercise their proxy votes. It is also directed to Super Funds, to make public their voting record against the advice received,…

Tax Month – May 2021

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – May 2021 Edition – ‘Tax Developments’ for tax practitioners by a tax practitioner.   Compiled by F John Morgan A member of the Victorian Bar (www.FJMtax.com) Table of Contents ______________________________________________________________________________ COMPILING…

National Charities and Not-for-Profits – a round up of challenges and reforms

Charities and Not-for-Profits (NFPs) face a number of challenges, including the overhand of 2020 (increased demand and reduced fund raising activities. Measures which could assist them, in a regulatory sense, would be reductions in ‘red-tape’ including: abolishing the ‘public fund’ requirements for DGRs; integrating the charities and non-charity NFP registers; harmonising state and federal exemptions…

‘Temporary full expensing’ and ‘Backing business investment’ – ATO Schedule for Substituted Accounting Period (SAP) taxpayers or lodging a part year tax return

On 20 April 2021, the ATO released the schedule to be used by individuals, companies, partnerships, trusts and AMITs who are claiming a deduction or opting out of temporary full expensing or backing business investment, who have a ‘Substituted Accounting Period (SAP) or are lodging a part year return, to notify the ATO that they are…

Instrument to extend Director ID transition period, for new directors, to match existing directors – 4 Nov 2021 to 30 Nov 2022

The Government registered 2 legislative instruments on 29 April 2021 relating to the director identification regime, extending the time directors need to register so that it is now form 4 April 2021 to 30 November 2022 – beware, this is all current and future directors. See below for further details. [Tax Month – April 2021]    …

Cof T v Apted (Retrospective ABN start date JobKeeper decision) – ATO issues Decision Impact Statement accepting thrust of decision and amending PS LA 2020/1 accordingly

On 29.4.21, the ATO issued a Decision Impact Statement (DIS) on the JobKeeper case: CofT v Apted, where the Full Federal Court upheld an application for an ABN, with a retrospective start date, prior to the 12 March 2020 date, was effective. The Commissioner recognises the broad effect of the decision and has amended his…

Coal of Queensland Pty Ltd v Innovation and Science Australia – R&D: surveys and drilling activities by coal miner not ‘core R&D activities’ or ‘supporting R&D activities’ – appeal dismissed

On 23.4.21, the Full Federal Court has upheld a decision that certain activities designed to make extracting coal from particular deposits commercially viable were not “core R&D activities” or “supporting R&D activities” for R&D income tax purposes. See below for further details. [Tax Month – April 2021]     The taxpayer wanted to develop new…