The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2021 was registered on 17 June 2021. It specifies the interest rate to be used for adjusting the “base amount” allocated in a court order or a superannuation agreement under the Family Law Act 1975 that splits a future defined benefit superannuation interest or an interest in…
For SMSF related-party limited recourse borrowing arrangements (LRBAs) used to acquire real property, the ATO’s safe harbour interest rate is expected to be 5.10% for 2021-22 (unchanged from 2020-21). Practical Compliance Guideline PCG 2016/5 sets the safe harbour interest rate each year according to the Reserve Bank Indicator Lending Rates for banks providing standard variable housing…
Amounts which Division 7A would deem to be a dividend, will avoid that result, if they are recorded as a s109N complying loan, prior to the private company lodging its return, for the year in which the payment, or loan, was made to the shareholder/associate. There is a minimum interest rate for such loans, known…
On 15 June 2021, Scott Morrison and Boris Johnson (Scomo and Bojo) agreed on the core terms of an incredibly important Free Trade Agreement between Australia and the UK. The new Agreement will see consumers in both markets benefit from cheaper goods, while farmers, winemakers and young people looking to live abroad will have greater…
Late last year (2020), Parliament passed legislation providing for ‘temporary full expensing’ of capital amounts incurred on depreciable assets used, or held ready for use in COVID affected years. Of recent, the Commissioner has issued a form of ‘public ruling’ known as ‘Law Companion Rulings’ to support the introduction of new legislation. The Commissioner has…
‘Research and Development’ (R&D) tax concessions involve a two step process – first to get the project registered with the Industry Innovation and Science Australia (IISA) as R&D and then to claim the concessions with the ATO, both of which involve separate appeals. The Board of Taxation is investigating the wisdom of this ‘dual-agency’ approach. See…
Tax practitioners not already authorised, with the ATO, as a agent for a taxpayer (typically legal practitioners) have 2 particular problems when acting for taxpayers attempting to forestall ATO collection proceedings, which are being addressed by the Law Council of Australia tax committee. See below for an extract of a meeting agenda item relating to…
On Thursday 24.6.21, the Press reported that Deloitte had settled the action, against it, by a partner who alleged they required him to retire as a partner – entitling him sue for unlawful age discrimination. I reported on in an earlier TT article. It was a test case as important, in my opinion, as the…
For the financial year ended 30 June 2021 (2020-21 financial year) this article surveys: claiming the ‘Temporary full expensing’ deductions or the Backing Business Investment accelerated depreciation deductions; the need for an extension of ATO guidance, to ‘unpaid present entitlement’ sub-trust arrangements, maturing in the 2020–21 income year (broadly that a Div 7A, s109N complying loan agreement can satisfy…
The Treasury Laws Amendment (Your Future, Your Super) Bill 2021 has passed both houses of Parliament making changes including: “stapled” single default accounts, a best “financial” interests duty for trustees and APRA benchmark testing of investment performance. See related TT article about the detail in this Bill. See below for further details about the Bill…