On Thursday 17.6.2021, the Bill that increases the maximum number of allowable members, from 4 to 6, in new and existing SMSFs and small APRA funds, passed both houses of Parliament, without amendment. See below for further detail. [Tax Month – June 2021] The Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020…
On 17 June 2021, Parliament passed legislation extending the ‘bring forward’ age limit to 65 and 66 (ie under age 67) for non-concessional contributions (announced in the 2019-20 Federal Budget). The legislation was also passed with Senate amendments relating to re-contributing amounts withdrawn from super funds, as a COVID relief measure, and repealing the ‘Excess Concessional…
A third instalment of tax considerations and changes having effect around year end, includes the 2021-22 end of the ‘single touch payroll’ exemption for ‘closely held payees’ (family members) in small employers (fewer than 20 employees); corporate tax and franking rates reduce from 26% to 25% for ‘base rate’ taxpayers; SGC moves from 9.5% to…
On 4 June 2021, the AAT has confirmed a decision of the Tax Practitioners Board (TPB) to cancel a tax agent’s registration for not acting “with honesty and integrity”; failed to provide information about a complaint he knew was legitimate and some other ‘meltdown’ behaviour. See below for further details. [Tax Month – June 2021]…
At the end of May 2021, the AAT decided that a music teacher engaged by a music school was an ’employee’ (within the ordinary meaning of that word) and not an independent contractor for superannuation guarantee purposes. See below for further details. [Tax Month – June 2021] Olias carried on business as a music school.…
The G7 Finance Ministers, meeting in Cornwall in the UK under the UK’s Presidency, issued a media release dated 5 June 2021, announceing that they had agreed to principles of an ambitious two Pillar global solution to tackle the tax challenges arising from an increasingly globalised and digital global economy. See below for further detail.…
On Thursday 10.6.21, the ATO today issued Draft Taxation Administration – Single Touch Payroll – 2021-22 year Withholding Payer Number Exemption 2021 (STP 2021/D1) proposing to extend for another year (2021-22) an existing STP reporting exemption for the main (the mandatory) payments. See below for further details. [Tax Month – June 2021] The…
On 7 June 2021, the AAT held that a company, that claimed it had paid $107,500 in wages to a director for one week, instead of the usual $100 a week, has been denied payment of the cash flow boost. This was to get the $50k maximum benefit. See below for further details. [Tax Month –…
On 10 June 2021, the Full Federal Court dismissed appeals against 2 separate decisions that trustees of resident discretionary trusts were assessable under s98 of the ITAA 1936 on capital gains made on the sale of shares that were not taxable Australian property (TAP) which were distributed to foreign residents – causing both taxpayers to…
Tax Havens were a key ingredient in the amazing world consensus to do something about ‘Base Erosion and Profit Shifting’ (BEPS) but they have come to the fore again, with some European countries denying Covid-19 relief to companies in, or with subsidiaries in tax havens (though the definition of this is contentious). This coincides with…