*Parliamentary Trustee of the Parliamentary Contributory Superannuation Fund v FCT – Superannuation contributions surcharge assessments upheld [67]

Tax Month - July 2012

The Federal Court has upheld superannuation contributions surcharge tax assessments under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTAC Act) in respect of the Parliamentary Contributory Superannuation Fund for members of the Victorian Parliament under the Parliamentary Salaries and Superannuation Act 1968 (Vic). The taxpayer claimed that the superannuation contributions surcharge (tax) assessments…

*Re Colless and FCT – Late super contribution made via clearing account; no jurisdiction to reallocate contribution to earlier year [66]

Tax Month - July 2012

The AAT has affirmed the Commissioner’s decision that a superannuation contribution paid by a taxpayer’s employer on 28 June 2007 into a clearing account but not allocated into the taxpayer’s super fund until 2 July 2007 meant that the amount of monies should be attributed to the 2007-08 financial year, and not the 2006-07 year…

*Kelly v FCT (No 2) – Family trust denied superannuation deduction for directors of the corporate trustee as they were not ‘employees’ – having no right to be paid under the constitution etc [64]

Tax Month - July 2012

The Federal Court has held that a family trust was not entitled to a deduction for superannuation contributions made on behalf of the husband and wife directors as they were not “employees” of the corporate trustee. At first instance, in Kelly v FCT [2012] FCA 423 (reported at 2012 LTN 80 [6]), the Court ruled…

*SMSF approved auditors to be registered with and monitored by ASIC – as from 1 July 2013 – draft legislation released [61]

Tax Month - July 2012

The Government has on Mon 16.7.2012, released exposure draft legislation proposing to implement its new registration regime for approved auditors of self-managed superannuation funds (SMSFs). The proposed amendments to the SIS Act will require “approved SMSF auditors” to meet initial and ongoing requirements relating to their qualifications, competency and independence. The Draft Bill will appoint…

Penalties for promoters of illegal early release super – Govt to introduce penalties legislation [60]

Tax Month - July 2012

The Minister for Superannuation announced on Fri 13.7.2012, that the Government would introduce penalties to deter promoters of illegal early release superannuation schemes. Mr Shorten said these promoters have in the past exploited vulnerable people by encouraging applications for rollover of superannuation balances. In these situations, he said the promoters have taken fees of up…

GSTR 2012/3 – when care services and accommodation provided to residents in privately funded retirement villages is GST-free [57]

Tax Month - July 2012

This Ruling, released on Wed 11.7.2012, explains when care services and accommodation provided to residents in privately funded nursing homes, aged care hostels and serviced apartments in a retirement village are GST-free. In particular, it explains when supplies of care services and supplies of accommodation to care recipients are GST-free under ss 38-25(3), 38-25(4) and…