Category Archives: Tax Month – May 2016

No ‘backpacker tax’ on 1 July 2016 – Government will review this proposed measure and enact any change prospectively

The Deputy Prime Minister and Minister for Agriculture and Water Resources: Barnaby Joyce announced that a re-elected Turnbull-Joyce Government would not enact the ‘backpackers tax’ retrospectively back to 1 July 2016 (the date it was announced to commence). [The so-called “backpacker tax” is the Government’s 2015-16 Budget proposal to remove the tax-free threshold for overseas working holidaymakers in Australia with…

Bell Group companies in liquidation – WA legislation to give the WA Government discretion as to how to distribute the proceeds of the liquidations held to be unconstitutional as inconsistent with Federal tax legislation

On Monday 16.5.16, the High Court unanimously held that the Bell Group Companies (Finalisation of Matters and Distribution of Proceeds) Act 2015 (WA) (the “Bell Act“) is invalid in its entirety by the operation of s109 of the Constitution because of inconsistency between its provisions and provisions of the Income Tax Assessment Act 1936 and the Taxation Administration Act…

Greens oppose backpacker tax

The Australian Greens have announced that they oppose the so-called “backpacker tax” (ie removing the tax-free threshold for overseas working holidaymakers in Australia with effect from 1 July 2016), saying it would unfairly impact on farmers and growers. Australian Greens spokesperson on Agriculture Senator Rachel Siewert said that “growers rely on working holiday makers for key seasonal work, such…

WA Budget 2016-17: land tax – no increase and reduced rate options will be examined

The WA Treasurer, on Thursday 12.5.2016, handed down the WA Budget 2016-17. Dr Nahan said there will be no increases to land tax noting some property owners had faced significant increases in their land tax assessments last year. He also noted that while the WA Government was not in the position to immediately reduce rates, it…

NSW payroll tax – Namoi Tyreright Pty Ltd v Chief Comr of State Revenue – discretion to degroup refused because business was not independent and of connections to others in the group

On Friday 13.5.2016, the NSW Civil and Administrative Tribunal affirmed a decision of the NSW Commissioner, refusing to exclude a taxpayer from a payroll tax group, pursuant to s 79 of the Payroll Tax Act 2007 (NSW). In August 2014, the Commissioner issued payroll tax assessment notices to the taxpayer in respect of the period 17 April 2012 to 30 June 2014. The assessments…

NSW: State Revenue Legislation Amendment Bill 2016 – receives Royal Assent – various tax changes included

The State Revenue Legislation Amendment Bill 2016 (NSW) received Royal Assent, as Act No 14 of 2016, on Wed 11.5.2016. It had passed all stages without amendment. The key amendments are as follows: amends the Duties Act 1997 (NSW) to: (i) make further provision relating to exemptions from duty for corporate reconstruction transactions; and (ii) provide for a reduction in…

NSW Amendments designed to feed information to the ATO for data matching and the ‘National Register of Foreign Ownership of Land Titles’

The Taxation Administration Amendment (Collection and Disclosure of Information to Commonwealth) Bill 2016 (NSW) was introduced in the NSW Legislative Council on 10 May 2016. The object of this Bill is to amend the Taxation Administration Act 1996 (NSW) to enable the NSW Chief Commissioner of State Revenue (the Chief Commissioner) to collect, and disclose to the Commissioner of Taxation…

Re: Paul J Castan & Son Pty Ltd atf Castan Investments Unit Trust and FCT – owner of hotel made supplies of commercial residential premises not the operator (which had exclusive control but not ownership)

The AAT has affirmed an objection decision of the Commissioner concerning GST on the supply of accommodation. The taxpayer was a hotel owner and it had a management agreement with an operator. The taxpayer claimed that it had incorrectly accounted for GST and sought a refund totalling $476,610 for the periods between 1 July 2010 and 31 December 2013.…

FCT v Bosanac – taxpayers appeal to the Full Federal Court – conscious maladministration alleged from assessments to both husband ($9.3m) and wife ($5.6m) despite wife having no business experience

The taxpayers have appealed to the Full Federal Court against the decision in FCT v Bosanac [2016] FCA 448. In that case, the Commissioner had been successful in his application for summary judgment against husband wife taxpayers for amounts of $15m for assessments issued to the taxpayers for the 2006 to 2013 income years (being $9.3m for the husband…

FCT v Rawson Finances Pty Ltd – taxpayer appeals Federal Court’s order that a letter of request be sent to the judicial authorities in Israel under the Foreign Evidence Act 1994

The taxpayer has appealed to the Full Federal Court against the decision in FCT v Rawson Finances Pty Ltd (No 2) [2016] FCA 402. The Federal Court had ordered that a letter of request be issued to the judicial authorities of Israel to take or cause to be taken the evidence of the Chairwoman of the Board of Mercantile…