Category Archives: Tax Month – July 2019

Moreton Resources Ltd v Innovation and Science Australia – experimental activities may include the application of existing technology at a new site

On 25 July 2019, the Full Federal Court held that expenditure on a pilot plant could be relevantly ‘experimental’ so as to qualify as ‘core R&D activities’, for the purposes of Div 355 of the Income Tax Assessment Act 1997. See below for a more detailed analysis of this ‘core’ part of the Court’s decision,…

Zombie bill not dead – ‘main residence’ CGT threats revived for Australian and foreign expats

The hares were set running on Friday 5 July 2019, when the ABC reported the Federal Treasurer had confirmed the measures designed to deny non-residents the ‘main residence’ CGT exemption were still Government Policy (despite being announced in the 2017 Budget, introduced in February 2018 as the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures…

Combatting Illegal Phoenixing Bill affects GST – estimates collectible, directors liable and another reason to delay refunds

On 4.7.19, the Government introduced the Treasury Laws Amendment (Combatting Illegal Phoenixing) Bill 2019 into the House of Representatives (see related Tax Technical article).  The Bill measures that impact GST – allowing the Commissioner to collect ‘estimates’ of GST, making directors liable for GST and further reasons to delay GST refunds. See below for a summary of these…

Combating Illegal Phoenixing Bill introduced – creditor defeating offences, director resignations, GST collections and refunds

The Government introduced the Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019 into the House of Representatives on Thursday 4 July 2019. Amongst other things, it will affect the way that the Commissioner collects GST and pays GST refunds. See below for a summary of the 4 schedules and the start dates for these measures. FJM…

Lapsed Measure to deny ‘main residence’ CGT exemption to non-residents remains ‘Government policy’ – apparently

On Friday 5 July 2019, the ABC reported that Federal Treasurer: Josh Frydenberg confirmed it remains Government policy to deny the CGT main residence’ exemption for persons who are non-resident, when they sell their home. This is despite Bill: Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Bill 2018 lapsing after the election…

Genuine redundancy and early retirement scheme payments – consultation on draft law to extend age limits to match age pension (per last MYEFO announcement)

The Government has released exposure draft legislation and explanatory material for amendments to give effect to the 2018-19 ‘Mid-Year Economic Financial Outlook’ (MYEFO) announcement, that it would extend the concessional tax treatment of genuine redundancy and early retirement scheme payments, from 1 July 2019, to those under Age Pension qualifying age. See below for further detail about this…

Personal tax cuts Bill passed without amendment – now law

On Thursday 4.7.19, the Senate passed the legislation enacting the remaining parts of the personal tax cuts, which the Government announced in the 2019 Federal Budget, in April this year. The feature of this package is the giant 30% marginal tax bracket from $45,000 to $200,000 of income per annum. There is a good tabular…

Tax Month – July 2019

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – July 2019 Developments – This is a collection of developments in Australian tax law and practice that occurred in July 2019 which aims to be relevant to tax practitioners.[i] Compiled By F…