Treasury has released a consultation paper on its review into occupational exclusions in default insurance offered through MySuper products. The review will focus on default cover in respect of life and total and permanent disability (TPD) insurance which trustees are required to provide to MySuper members. The Government has expressed concern that occupational exclusions may result in default insurance…
Class Limited* has released its annual SMSF benchmark report revealing a treasure trove of data from the 2021 financial year, and analysis of how the SMSF sector performed in response to COVID-19. Class Ltd CEO, Andrew Russell, said it is interesting to see how resilient the sector has been during COVID-19, from avoiding early release mechanisms to…
APRA has published a new frequently asked question (FAQ) on the interaction between COVID-19 disaster payments and satisfying the “work test” for the purposes of personal superannuation contributions. APRA FAQ No 15 warns superannuation trustees not to assume members aged 67 to 74 in receipt of the Pandemic Leave Disaster Payment or COVID-19 Disaster Payment…
The Federal Court has made declarations that Colonial First State Investments Limited (CFSIL), as trustee of the Colonial FirstChoice Fund, made false or misleading representations to members in relation to MySuper. CFSIL’s conduct was the subject of a case study by the Banking Royal Commission. The Court declared that on at least 12,978 occasions, CFSIL made misleading…
The ATO has issued a worksheet aimed at first-time share and Exchange Traded Funds (“ETF”) investors. The ATO states that the growth of micro-investment platforms has helped a “record number of new investors enter the market”. The release is mostly targeted at ETFs, which the ATO states is an increasingly popular investment option among “millennials”. ETFs provide…
Class Ruling CR 2021/58, issued on Wed 1.9.2021, considers the tax treatment of amounts paid to Tennis Australia officials for participating in non-professional tennis tournaments. The ATO notes that historically (presumably pre-COVID-19), Tennis Australia engaged over 500 officials per year. The average amount paid each year to an official was $2,566 for around 21 days…
The taxpayer has discontinued his appeal to the Federal Court from the AAT decision in Joubert and FCT [2020] AATA 2645. The Tribunal decision, which now stands, held that a taxpayer who moved to Singapore for work, but who regularly and frequently returned to Australia to visit his family, remained a tax resident of Australia. TAXATION – residency…
The High Court has dismissed the taxpayer’s application for special leave to appeal from the decision of the Full Federal Court in Coal of Queensland Pty Ltd v Innovation and Science Australia [2021] FCAFC 54. The Full Federal Court decision, which now stands, had upheld an AAT decision that certain activities designed to make extracting coal from particular deposits…
On 28.9.21, the Australian Federal Police, ATO and ASIC issued a joint media release, reporting that a man, from Sydney’s inner west, will appear before Downing Centre Local Court, to face charges in relation to a $20m fraud and money laundering operation. The case is part of Operation Bordelon, a Serious Financial Crime Taskforce joint…
The ATO has issued a release on 3 convictions for illegal phoenix operations. The 3 men were alleged to have established multiple labour hire companies to provide workers to vineyards, fruit and vegetable growers, and meat processers around South Australia and in Queensland. The companies failed to remit both GST and PAYG withholding to the ATO, despite…