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

Tax Month – October 2020

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – October 2020 Edition – ‘Tax Developments’ for tax practitioners by a tax practitioner.   Compiled by F John Morgan A member of the Victorian Bar (www.FJMtax.com) Table of Contents ______________________________________________________________________________ COMPILING…

Eichmann v CofT – CGT Small Business Concessions – Property used for storage was an ‘active asset’ – taxpayer finally wins in Full Federal Court

On 18.9.2020, the Full Federal Court has allowed the Taxpayer’s appeal, holding that a property used to store materials, tools and other equipment was an active asset for the purpose of the Div 152 CGT small business concessions, and as a result, those concessions applied (reversing the Federal Court decision, which reversed the AAT decision,…

ACT Rates Relief – for Commercial Tenants negotiating in good faith with COVID-19 affected tenants – extended with JobKeeper

The ACT Government notified on 10 September 2020 the Leases (Commercial and Retail) COVID-19 Emergency Response Declaration 2020 (No 2) to extend its assistance to incentivise commercial landlords to offer rent relief for tenants impacted financially by COVID-19. This matches the extension of the Federal JobKeeper support package. See below for details. [Tax Month – September 2020]

Foreign Resident CGT Withholding Tax – ATO updates website for ‘Purchaser Payment Notification’ (PPN) forms – generating a ‘reference number’ for ATO, vendor and purchaser purposes

On 27 Aug 2020, the ATO updated its website regarding legal practitioners lodging ‘Purchaser Payment Notification’ (PPN) forms, for Foreign Resident CGT Withholding Tax (CGT Withholding Tax). Though this will be most relevant for conveyancers, it is worth re-acquainting ourselves with this regime. See below for details. [Tax Month – August 2020]

Qld stamp duty: Resolute Mining Ltd v Commr State Revenue – duty payable on $635k ‘unencumbered value’ of land – not the $8.4m ‘funding amount’ to move a school – which couldn’t be valued because it could go up or down

The Qld Supreme Court has held that duty was payable on the unencumbered value of land as the highest consideration payable under the agreement to purchase the land could not be ascertained when the agreement was executed. See below for details. [Tax Month – September 2020]

JobKeeper 2.0 – ‘work test’ for higher (Tier 1) benefits when hours of work not ascertainable – ATO Determination on when higher benefit will be paid

The ATO registered a legislative instrument, the Coronavirus Economic Response Package (Payments and Benefits) Higher Rate Determination 2020, on 16 September 2020. It sets out when the higher JobKeeper rate applies to an eligible employee of a JobKeeper registered entity, identifying the specific circumstances in which the Commissioner will be satisfied that determining an employee’s total hours is not…

JobKeeper 2.0 ‘decline in turnover test’ – ATO Determination allows ‘actual’ turnover to be calculated on an ‘attribution’ timing basis

The ATO registered a legislative instrument, the Coronavirus Economic Response Package (Payments and Benefits) (Timing of Supplies Made and Decline in Turnover Test) Rules 2020 (No 1), on 16 September 2020 – to allow taxpayers to use the GST ‘attribution’ rules to calculate their actual ‘turnover’ for the ‘decline in turnover test – for the extended JobKeeper…

JobKeeper 2.0 – Alternative 28-day ‘Reference Periods’ for the 40hr per fortnight work test (for higher ‘tier’ benefits) – determination made by Commissioner

On Wed 16 Sept 2020, the Commissioner of Taxation registered a legislative instrument, the Coronavirus Economic Response Package (Payments and Benefits) Alternative Reference Period Determination 2020. It sets out 4 alternative reference periods for specified classes of individuals in determining whether the higher or lower JobKeeper payment rate (Tier 1 or Tier 2) applies. See below for details.…