Category Archives: Tax Month – April 2020

JobKeeper – Alternative ‘decline in turnover’ tests for 7 situations – made by ATO ‘determination’ under the Act (the gift that keeps on giving…)

On Friday 1 May 2020, the Tax Institute’s Senior Chief Tax Counsel: Bob Deutsch published an article in their weekly tax newsletter TaxVine, entitled: JobKeeper – the gift that keeps on giving! It is about the made a determination (“the Determination”) the Commissioner made, under section 20(4) of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020,…

Wareham v Marsella – SMSF dispute over trusteeship and death benefit – adult daughter of previous marriage distributes to herself but removed by ‘new’ husband of 30 years

On 20 April 2020, the Victorian Court of Appeal dismissed an appeal by the trustees of a self-managed super fund (SMSF), and upheld the decision setting aside their payment of a death benefit entirely to the surviving trustee, following the death of the sole member of the fund. See below for a summary of the case. [Tax…

Donkin & Ors v CofT – Beneficiaries assessable on increase in net income of trust (despite the ‘moving target’ style of trust distribution resolution)

On 22.4.20, a 10.12.19 decision of the AAT was published, deciding that the beneficiaries of a trust, who had received distributions, were assessable on the increase in the tax law ‘net income’ of the trust, resulting from deductions for various expenses being disallowed. See below for a summary of the case. [Tax Month – April…

COVID-19 early release of super: APRA data on first week (600k applications and $1.3b) and PM’s 1.5.20 report (950k applications with $7.9b total)

On Monday 4 May 2020, APRA released a data report on COVID-19 early release of superannuation applications received by funds in the week from 20 April – 26 April 2020. This covered the number of applications, the time to process them and the total amount paid. See below for the further details. [Tax Month – April 2020]

PCG 2020/4 – JobKeeper: ATO practical guidance on its auditing risk assessment of various schemes – genuine affect of the pandemic is the guide

The ATO has released Practical Compliance Guideline PCG 2020/4, which sets out how the ATO will apply compliance resources to schemes to obtain access to the JobKeeper Payment, or an increased amount of a JobKeeper Payment. See below for a summary of this PCG. [Tax Month – April 2020]

PSLA 2020/1 – ‘Cashflow Boost’ measure – Commissioner’s guidance on when further time discretion should be exercised for ABN registration or notice of assessable income or taxable supplies

On Friday 1 May 2020, the ATO released Practice Statement Law Administration  which, for Cashflow Boost eligibility purposes, provides guidance on the relevant circumstances that should be taken into account when the Commissioner is considering whether to grant further time for an entity to (1) register for an ABN; or (2) to provide notice of…

JobKeeper – Amending Regs (No. 2) – Employee Hubs, religious practitioners, overseas aid and other charities and Universities accommodated – ‘one in all in’ principle strengthened

On 1 May 2020, the Government registered the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 2) 2020 on the Federal Register of Legislation, amending the Main rules made on 9 April 2020 (see related TT article). There are some significant changes here. See below for a summary of these amending rules. [Tax Month – April…

Key JobKeeper Payment updates – ATO

Prior to 4 May 2020, the ATO issued an update on the JobKeeper rules. In the light of various steps in the registration only being available from 4 May 2020, this is important. See below for the announcement. [Tax Month – April 2020]

Lex Greensill loses $60m tax battle – on Family Trust’s disposal of shares in foreign Greensill Capital shares

On 28 April 2020, Hannah Wootton, reporter for the Australian Financial Review, posted an article for that mast head, entitled: Lex Greensill loses 460m tax battle.  This followed the Federal Court decision that day, where his family trust lost an argument that it didn’t have to pay tax on the capital gain from selling shares that…

Peter Greensill Family Co Pty Ltd v CofT – Trustee assessed, under s98, on capital gains, distributed to a non-resident, relating to shares that were not ‘taxable Australian property’

On 28 April 2020, Thawley J decided, in the Federal Court, that the trustee of a resident discretionary trust was assessable under s 98 of the ITAA 1936 on capital gains made on the sale of shares that were not taxable Australian property which were distributed to a foreign resident. The taxpayer went on to lose…