TR 2019/6 – ‘in Australia’ requirement for DGRs and charities – deductions for gifts, exemption of charity’s income and franking credits for charities (finalised TR 2018/D1)

On 18.12.19, the Commissioner issued Taxation Ruling TR 2019/6, finalising his public position on the meaning of “in Australia” for deductible gift and a similar requirement for charity income tax exemption and franking credit purposes.

See below for a summary of this ruling and the relevant law.

[Tax Month – December 2019]


CofT v The Trustee for the Michael Hayes Family Trust – Taxpayer trustee not taxed on income of subsidiary trust because that trust was taxed under Div 6C – ‘mistake’ cured & ATO loses appeal

The Full Federal Court has dismissed the ATO’s appeal against a decision that the trustee of a family trust was not presently entitled to income of another trust that was a public trading trust.

See below for a summary of the case.

[Tax Month – December 2019]


CofT v Scone Race Club Limited; CofT v Racing Queensland Board – ‘Horse Racing Clubs’ and ‘Horse Racing Boards’ liable for SG Charge on jockey riding fees – ATO appeals allowed

On 16 December 2019, the Full Federal Court ruled in favour of the Australian Taxation Office (ATO), in two separate cases, agreeing that a particular ‘horse racing club’ and a ‘state racing board’ were required to pay superannuation contributions, on amounts they pay to jockeys, for riding the horse. See below for a summary of…

Data on ‘life-style assets’ from insurers – ATO seeks further five years of data under s353-10 notice to produce power

On 18 December 2019, the Australian Taxation Office (ATO) posted that it will request a further five years’ worth of policy information from over 30 insurance companies about taxpayers who own marine vessels, thoroughbred horses, fine art, high value motor vehicles and aircraft. See below for further details from the ATO’s post. [Tax Month – December…

Australian Residents, Foreign Trusts and Foreign Funds – The New Black! – covering the Australian tax implications of Australian individuals being trustees or beneficiaries of foreign trusts

The Tax Institute conducted its 7th Annual Victorian Tax Forum, in Melbourne over 17 & 18 October 2019, and Mr Neil Brydges of Melbourne legal firm: Sladen Legal, delivered a paper entitled: ‘Australian Residents, Foreign Trusts and Foreign Funds – The New Black! ‘ This is an important paper covering the Australian tax implications for Australian taxpayers becoming…

APRA’s ‘heatmap’ data on MySuper products – AFR article shows the best and the worst (nowhere to hide for dud super funds)

On 10 December 2019 (the same day as APRA released its ‘HotSpot’ material for MySuper products) the Australian Financial Review published an article relating to this ‘HotSpot’ material), written by Joanna Mather and Aleks Vickovich titled: ‘Nowhere to hide for dud super funds’. This is revealing material. See below for the article. [Tax Month –…

Corporate tax residency review: second Board of Taxation consultation paper – consulting on 2 main (remaining) options – ‘incorporation only’ test and a modified ‘central management and control’ test

On 6.12.19, the Board of Taxation has released a second consultation paper, canvassing the ‘reform options’ as part of its review of the operation of Australia’s corporate tax residency rules. It has also called for submissions by 31 January 2020. See below for the ‘Reform Options’ consultation paper and extracts from it. [Tax Month – December…