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

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

Tax Month - May 2013

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…

*SCCASP Holdings as trustee for the H&R Super Fund v FCT – Trust distribution of capital gain was “special income” derived by SMSF [87]

Tax Month - May 2013

The Full Federal Court has on Fri 10.5.2013 dismissed the taxpayer’s appeal from the decision in SCCASP Holdings as trustee for the H&R Super Fund v FCT [2012] FCA 1052. In so doing, the Full Court upheld the finding that a resolution to distribute a id=”mce_marker”4m capital gain from a family trust was “special income”…

*Trans-Tasman superannuation portability – (limits on New Zealand sourced amounts) [83]

Tax Month - May 2013

Draft regulations released The Government has released Exposure Draft – SIS Regulations to support the implementation of its trans-Tasman retirement savings portability scheme. From 1 July 2013, it will be possible to transfer retirement savings between certain Australian superannuation funds and New Zealand KiwiSaver schemes under a portability scheme established by the Superannuation Legislation Amendment (New Zealand…

*Higher super concessional contributions caps for older individuals – draft legislation released for consultation [79]

Tax Month - May 2013

The Government on Mon 6.5.2013, released for public consultation an exposure draft of the legislation to implement a higher concessional superannuation contributions cap of $35,000 for older individuals as announced by the Government on 5 April 2013. For individuals aged 60 and over, the new proposed higher cap will apply from 1 July 2013. Individuals aged 50 and over…

Re Wynnum Holdings No 1 Pty Ltd & Ors v FCT – taxpayers withdrew appeal – input tax credits remain disallowed; no enterprise and not ‘commercial residential premises [73]

Tax Month - May 2013

The taxpayers have discontinued their appeal to the Federal Court against the decision of Frost DP in AAT Case [2012] AATA 616, Re Wynnum Holdings No 1 Pty Ltd & Ors and FCT. The AAT decision, which now stands, had held the nominee and bare trustee of a joint venture trust was not carrying on…

Personal Services Income (PSI) – ATO will write to certain taxpayers and tax agents encouraging voluntary disclosures where appropriate [65]

Tax Month - May 2013

The ATO has advised that in May 2013 it will be writing to some taxpayers asking them to review their income tax returns for the 2011-12 year. It says those taxpayers will be asked to review whether the business income they have reported in their tax returns may be in full or part, be classified as personal services income…