Board of Taxation – Review of ‘dual agencey’ R&D Tax Incentive – both Innovation & Science and also ATO

‘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…

Problems liaising with ATO Debt – establishing authority to act and access to relevant senior officers

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…

Year-end tax planning Part 4 – 2020-21 full expensing and accelerated depreciation; maturing UPE ‘sub-trust’ arrangements; Div 7A Minimum Yearly Payment Covid relief again; ‘working from home’ deductions; first ‘loss carry back’ offset year

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…

Your Future, Your Super Bill passed with amendments – “stapled” single default accounts, a best “financial” interests duty for trustees and APRA benchmark testing of investment performance

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…

Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020 – SMSF membership limit increased from 4 to 6

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…

Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 – $100k super NC contribution 3 year ‘bring-forward’ extended by 2 years, re-contributing COVID withdrawals and repealing the ‘excess concessional contributions charge’

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…

Year-end tax planning Part 3 — STP for family members; franking 26% to 25%; SGC 9.5% to 10%, no $450 pcm threshold; Super CCC $25k to $27k, NCC $100k to $110k; LMITO continues for 2022

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…

Le’Sam Accounting Pty Ltd v TPB – Tax agent no longer a “fit and proper person”; failure to respond in relation to legitimate complaint

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]…