Category Archives: Tax Month – March 2017

Insolvency reforms (the ‘Innovation Package’) – issue of exposure draft proposing exemption from ‘insolvent trading’ for directors in reasonable restructures and a stay on ‘ipso facto’ clauses (triggered by insolvency)

As part of the National Innovation and Science Agenda (NISA), the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer, has released draft legislation which reforms Australia’s insolvency laws and an accompanying draft explanatory statement for public consultation. This was on Tuesday 28.3.17. The draft legislation will amend the Corporations Act 2001 in an…

Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 – passes the senate with 6 agreed Govt amendments – passing the Govt’s Corp Tax Cut plan: 27.5% in 2017 (sub-$10m turnover); 2018 (sub-$25m) and 2019 (sub-$50m)

The Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 was passed by the House of Reps on Mon 27.3.2017 and the Senate late on Friday 31.3.17 before rising to return for the Budget sittings in May. The passage of this Bill was achieved with the agreement of the Xenophon Team. It will have to return to the…

Re Mills v FCT – post-Ward’s case but still no “special circumstances” to remit excess super tax – UK pension into another fund, a year later than intended, pushed the $180k contribution over the limit without the fund knowing

The AAT has confirmed that there were no “special circumstances” to permit the Commissioner to exercise his discretion to remit excess contributions tax (ECT) of some $30,000 imposed on the taxpayer. This was despite the fact that the taxpayer received an email from his superannuation fund that he had not exceeded the non-concessional contributions limit…

Stapled securities: Treasury issues consultation paper

This consultation paper seeks stakeholder views on potential policy options in relation to stapled structures, the taxation of real property investments and the re-characterisation of trading income. Australia’s general framework for the taxation of non-resident investment seeks to balance a desire to ensure that non-residents pay an appropriate amount of tax on Australian sourced income…

The Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 – registered

The Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 were registered on Mon 27.3.2017, to support the package of super reforms from 1 July 2017. The Regulations amend the ITA Regs, SIS Regs and Corporations Regulations 2001, to support the $1.6m pension transfer balance cap that will limit the amount of superannuation an individual can transfer into retirement phase.…

FCT v Normandy Finance and Investments Asia Pty Ltd (No 2) – Full Court: Commissioner awarded only partial costs for “inefficient” running of appeals

FCT v Normandy Finance and Investments Asia Pty Ltd (No 2) – Full Court: Commissioner awarded only partial costs for “inefficient” running of appeals Following the decision of the Full Federal Court in FCT v Normandy Finance and Investments Asia Pty Ltd & Ors [2016] FCAFC 180, in favour of the Commissioner, the Full Court has now ordered the taxpayers…

Sandini Pty Ltd v FCT CGT: s126-15 breakdown of marriage CGT rollover available for transfer of mining shares from a trust controlled by one former spouse to a trust controlled by the other former spouse under Court order

The Federal court found, in an application for declaratory relief, that breakdown of marriage rollover relief applied to a transfer of $2.5m of mining shares, from a trust he controlled by one spouse, to a corporate trustee of a trust controlled by his former spouse. The transfer was made pursuant to a family court order,…

Vic Land Tax – Lotus Projects Pty Ltd v Commissioner of State Revenue (Vic) Part of development used as golf course not exempt from land tax – reasons bear examination

Vic Land Tax – Lotus Projects Pty Ltd v Commissioner of State Revenue (Vic) Part of development used as golf course not exempt from land tax – reasons bear examination On 20 March 2017, the Victorian Supreme Court held that the part of a residential development, used as a golf course, was not eligible for…

Trustee for the Whitby Trust and FCT – $2m price of option not added to the $26m paid for the purposes of the ‘margin scheme’ – not ‘consideration for [the] acquisition’ of the real property

A property developer has been unsuccessful in arguing that a fee paid for an option to purchase real property formed part of the acquisition cost of the property. The taxpayer entered into an agreement with the vendor to purchase the property for $28m, which included a non-refundable option fee of $2m. The option was exercised…

GST-free child care for ‘long day care’ and ‘in-home care’ continues to be GST-free after previous determinations by the Minister replaced by new s38-150(e) determination

The GST-free Supply (Long Day Care and In-home Care) Determination 2017 was registered on Thur 23.3.2017, to ensure that supplies of child care will remain GST-free where funding is provided by the Commonwealth for in-home care or long day care services. This determination is made under s38-150(e) of the GST Act, which allows the Child…