Author Archives: John Morgan

Re McLennan and FC – Superannuation withdrawal and re-contribution hit with excess contributions tax – nothing ‘special’ to disregard the excess [89]

A taxpayer who withdrew and re-deposited his superannuation has been hit with excess contributions tax of $31,620 after the AAT agreed with the Commissioner that there were no “special circumstances” to disregard the excess contributions under s 292-465 of the ITAA 1997. In January 2009, the taxpayer withdrew $366,573 from his superannuation fund and placed it in bank…

*Council of Super Custodians and Charter – consultation begins [82]

The Minister for Superannuation, on Thur 9.5.2013, announced the members of a Charter Group to help develop the Charter of Superannuation Adequacy and Sustainability and to establish the Council of Superannuation Custodians as announced in April 2013. The members of the Charter Group include the Honourable Alan H Goldberg AO QC, Mr Ross Jones, Deputy Chair and Member…

CR 2013/32 – GST treatment of fees by NSW councils [77]

The ATO on Wed 29.5.2013, issued Class Ruling CR 2013/32. It applies from 1 July 2013. Broadly, the Ruling sets out the GST treatment of fees and charges imposed by NSW Councils in relation to property development, building construction applications, and other related approvals and permits.

[LTN 102, 29/5/13]

*Indexation of certain superannuation thresholds for 2013-14 [86]

As a consequence of the amendments to the indexation provisions proposed by the Tax Laws Amendment (2013 Measures No 2) Bill 2013, the following superannuation thresholds will be increased for 2013-14 to: Superannuation guarantee: maximum contribution base – $48,040 (up from $45,750 for 2012-13). Genuine redundancy and early retirement payments – tax-free amounts: base amount…

GSTD 2013/D3 – GST-free non-accommodation supplies by Charities etc at less than 75% of the consideration provided by the Charity etc – depreciating capital items [76]

This Draft GST Determination, released on Wed 29.5.2013, states that a portion of the consideration a supplier has provided for acquiring capital items that diminish in value over time can be included when calculating whether a supply in that period is GST-free under s 38-250(2)(b)(ii) of the GST Act (A New Tax System (Goods and Services…

*Higher concessional contributions cap; extra 15% contributions tax; other changes [81]

Bills introduced to Lower House The Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013 was introduced into the House of Reps on Wed 15.5.2013 [the morning after the budget]. The amendments are as follows: Higher concessional contributions cap – the Bill proposes to amend the ITAA 1997 and the…

*Tax and Super Amendment (No 1) Bill – SMSF related party acquisition measures deleted [85]

The Tax and Superannuation Laws Amendment (2013 Measures No 1) Bill 2013 was passed by the House of Reps late on Wed 29.5.2013 with 4 Government amendments concerning the loss carry-back measures and to delete the SMSF related party acquisition measures. It now moves to the Senate. Loss carry-back – see ‘Legislation’ above…. SMSF related…

Kronen v Comr of Taxation – Court dismisses application re super entitlements [88]

An applicant has been unsuccessful before the Federal Court in a matter concerning his claimed entitlement to unpaid superannuation contributions (some $4,850) from his then employer. In earlier legal proceedings before the Federal Court (Besanko J in Kronen v FCT [2012] FCA 1463), the applicant had attempted to have the Commissioner (through the Tax Office) enforce…

*More MySuper reforms – tax loss and gain rollovers on transfers to ‘MySuper’ Fund [84]

The Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill 2013 was introduced in the House of Reps today. It contains the following amendments: would amend the ITAA 1997 to facilitate the Government’s MySuper reforms by providing income tax relief to superannuation funds where there is a mandatory transfer of default members’…

*Superannuation changes to be legislated: (1) $35k contribution cap for those over 50 & (2) withdrawal of excess contributions at marginal rates [80]

The Government has confirmed that it will introduce legislation to deliver 2 of its key superannuation reforms. The measures, announced on 5 April 2013, will allow for the withdrawal of excess concessional contributions without penalty and introduce a $35,000 concessional cap for people aged 60 or over. As noted above, the Government has released for comment exposure…