The WA Office of State Revenue (OSR) has reminded taxpayers that from 1 July 2016, the annual payroll tax threshold will change from $800,000 to $850,000. The diminishing threshold will be calculated on annual wages between $850,000 and $7.5m. The tapering value used to calculate the deductable amount will change from 8/67 (0.199) to 17/133 (0.128). The…
Two taxpayers have been successful before the Federal Court in a matter concerning boating expense claims and the quarantining rule under s 26-47 of the ITAA 1997. The Commissioner concluded that s 26-47 applied to boat chartering activities conducted by the taxpayers and therefore quarantined deductions claimed by the taxpayers that exceeded the respective company’s assessable income…
On 6 April 2016, Treasury released a draft of the Tax and Superannuation Laws Amendment (2016 National Innovation and Science Agenda) Bill 2016, which was to further the ‘National Innovation and Science Agenda’ by making it easier for companies to carry forward their tax losses and capital losses by adding a ‘similar’ business test to the…
On 6 April 2016, the Government has released a draft of the Tax and Superannuation Laws Amendment (2016 National Innovation and Science Agenda) Bill 2016, to implement its December 2015 Innovation Agenda measure to allow increased access to company tax losses. On 7 December 2015, the Government announced a package of measures designed to incentivise and reward innovation as part of its…
The Tax Office on Wed 6.4.2016, issued Practical Compliance Guideline PCG 2016/5 setting out the Commissioner’s “safe harbour” terms on which SMSF trustees may structure related-party LRBAs consistent with an arm’s length dealing. The ATO generally takes the view that a SMSF may derive non-arm’s length income (taxable at 47%) if the terms of a LRBA are not consistent with…
This Draft Ruling, issued on Wed 6.4.2016, sets out the deductibility of expenditure incurred in acquiring, developing, maintaining, or modifying a website for use in carry on a business. It covers expenditure in acquiring, developing, maintaining and modifying a website. The Draft also covers the deductibility of content migration and social media accounts. Generally, it…
On 6 April 2016, the High Court, by majority, dismissed an appeal from the Court of Appeal of the Supreme Court of New South Wales. The High Court held that a trustee had validly exercised a power to “advance” and “apply” trust capital or income by creating a debt reflecting the value of shares held by…
GST and Real Estate Contracts – when things go wrong By – Chris Sievers – Victorian Bar Introduction 1) Since the introduction of the GST in 2000,[1] there has been a number of decisions by State Courts and Tribunals dealing with disputes as to the treatment of GST under real estate contracts. These disputes are between parties…
In SAMM Property Holdings Pty Ltd v Shaye Properties Pty Ltd [2016] NSWSC 362 the Supreme Court found that a Contract of Sale should be rectified to reflect the common intention of the parties that the purchase price was to be exclusive of GST. The decision is another example of the difficulties that can arise where real estate is…
A taxpayer has been successful before the Supreme Court of NSW in having land tax assessments for the 5 land tax years set aside on the basis that the primary production use of the lands in question was “the dominant use” of the lands, except for one parcel in one land tax year. The taxpayer…