EE&C Pty Ltd as Trustee for the Tarcisio Cremasco Family Trust v CofT – Deed of settlement effective to contract out of objection rights for taxpayer – no basis for AAT review

In this case, the AAT decided that the terms of a Settlement Deed, which the trustee and the Commissioner executed, prevented the trustee objecting and precluded the AAT reviewing the assessments issued in accordance with that Deed. The taxpayer was the trustee of a family trust. There had been ongoing disputes, audits and negotiations regarding…

Petroleum Rent Resources Tax (PRRT) – Government’s response released – 10 percentage point reduction in ‘exploration’ expenditure uplift & on-shore projects removed from PRRT

On Friday 2 November 2018, the Treasurer released there Government’s final response to the review of the Petroleum Rent Resource Tax (PRRT), commenced in 2016 and conducted by economist: Mike Callaghan. He also issued a Media Release, summarising the result. The PRRT was introduced in 1988 by the Hawke-Keating Labor Government and represented a Federal version…

LCR 2018/8 – Cleaning and courier industries’ new annual contractor reporting obligations – payments from 1 July 2108, first report due 31 July 2019

On Wed 31.10.2018, the ATO released Law Companion Ruling LCR 2018/8 on the recently enacted measure to extend the third party reporting regime to entities in the cleaning and courier industries. The law was amended under the Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Bill 2018, which became law on 3 October 2018. ABN…

TD 2018/D6 – the ‘debt/equity’ rules operate on the ‘arm’s length conditions’ deemed to exist, for the purpose of determining if a ‘transfer pricing benefit’ arises under Subdivision 815-B

On Wed 31 Oct 2018, the ATO issued Draft Tax Determination TD 2018/D6, which considers the interaction between the debt/equity rules and Australia’s transfer pricing rules. The Commissioner’s approach is that the debt/equity rules (in Div 974 of the ITAA97) cannot limit the operation of the transfer pricing rules( in Subdiv 815-B) – which appears…

TD 2018/15 – the CGT consequences of granting an easement, profit à prendre or licence over an asset – CGT event D1 (not A1) – limited cost base, no 50% discount, no main residence exemption, no pre-CGT exemption

On Wed 31.10.2018, the ATO issued Taxation Determination TD 2018/15 on the CGT consequences of granting an easement, profit à prendre or licence over an asset. In the Commissioner’s view, CGT-event D1 happens (under s104-35 of the ITAA97) when the right is created, rather than it being a s104-10 CGT-event A1 for a partial disposal…

TR 2018/7 – Employee Remuneration Trust (non-Div 83A ESS interests) – employer deduction on contribution; employee tax on benefits; tax effect on trustee; FBT; Div 7A deemed dividends; 13-month pre-payment rule

On Wed 31.10.2018, the ATO issued Taxation Ruling TR 2018/7 on employee remuneration trust (ERT) arrangements that operate outside the employee share scheme rules in Div 83A of ITAA97 (which includes beneficial interests in employer shares held through trusts). The Ruling finalises draft Taxation Ruling TR 2017/D5. This ruling is about arrangements established to facilitate the provision of…

Comprehensive Income Product for Retirement (CIPRs) – start date deferred to 1 July 2022 and account balance threshold increased from $50k to $100k

In a media released Wed 31.10.2018, the Assistant Treasurer, Stuart Robert, said the Government will defer, to 1 July 2022, the start date for superannuation funds to offer a Comprehensive Income Product for Retirement (CIPR). In addition, the Government will increase the threshold superannuation balance for offering a CIPR from $50,000 to $100,000. INNOVATIVE INCOME STREAMS: Mr Robert…

Minister announces changes to the superannuation law – relating to the way ‘market-linked pensions’ are treated under the $1.6m ‘transfer balance cap’ rules & keeping rolled over death benefits tax free

On 30 Oct 2018, the Government has announced that it will amend the superannuation tax law to address some minor, but important issues, as part of the ongoing implementation of the July 2017 super reforms. In a speech to the Alliance for a Fairer Retirement System, the Assistant Treasurer, Stuart Robert, said the new measures will: Market-linked…

Australian Financial Complaints Authority (AFCA) opening for business as of Thursday 1 November 2018 – replacing the Financial Ombudsman Service (FOS) and Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal (SCT)

The Australian Financial Complaints Authority (AFCA) opening for business as of Thursday 1 November 2018. This is the new one-stop shop for financial dispute resolution, delivering free, fast and binding services for all financial complaints, whether they be related to banks, credit providers, insurance companies or superannuation funds. AFCA will replace the Financial Ombudsman Service…