Category Archives: Tax Month – May 2016

LCG 2015/4-14 – Managed Investment Trusts (MIT) and Attributions MITs (AMITs) – Law Companion Guides updated for Royal Assent of the package of 4 Bills

Following the recent Royal Assent to the package of 4 Bills that establish a new system for taxing Managed Investment Trusts (MITs), the ATO has released the following 12 updated and one new Law Companion Guidelines on Attribution Managed Investment Trusts (AMITs) and MITs: LCG 2015/4 – Attribution Managed Investment Trusts: “clearly defined rights” LCG 2015/5 –…

NSW stamp duty – Perizon Nominees Pty Ltd v Chief Comr of State Revenue – “no double duty” concession (to avoid both contract and transfer being taxed) did not apply as the family trust transferee did not exist at contract time

The NSW Civil and Administrative Tribunal has affirmed the Commissioner’s objection decision refusing a taxpayer’s claim for the “no double duty” concession for a non-conforming transfer under s18(3) of the Duties Act 1997 (NSW). There was a contract of 26 April 2012 for a purchase of a property naming Ms P as the purchaser. The contract was stamped and…

Panama Papers – ICIJ announces searchable database of 300,000 off-shore entities and structures kept secret and the response of various nations

The International Consortium of Investigative Journalists publishes today a searchable database that strips away the secrecy of nearly 214,000 offshore entities created in 21 jurisdictions, from Nevada to Hong Kong and the British Virgin Islands. The data, part of the Panama Papers investigation, is the largest ever release of information about offshore companies and the people behind them. This…

Higher Education Loan Program (HELP) repayment rates and thresholds for the 2016-17 financial year

A notice has been gazetted specifying the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2016-17 financial year. This notice (dated 9 May 2016) revokes the previous notice (dated 1 March 2016). The details are: HELP repayment thresholds and rates 2016-17 For repayment income in the range Percentage rate to be applied to repayment income 0 –…

Foreign resident capital gains withholding – amendments to regulations to exempt market transactions on the Chi-X exchange and also to exempt conveyancers’s functions from being ‘tax agent services’

The Tax Laws Amendment (Foreign Resident Capital Gains Withholding Payments) Regulation 2016 was registered on Monday 9.5.2016. It amends the Income Tax Assessment Regulations 1997 and the Tax Agent Services Regulations 2009. The Amendment Regulation prescribes Chi-X Pty Ltd as an approved stock exchange so that transactions that take place on Chi-X fall within the “on-market transaction” exemption from the foreign resident capital gains…

Managed investment trusts – ATO information on MIT’s electing in early from 1 July 2015

A managed investment trust (MIT) is a type of unit trust in which members of the public collectively invest in passive income activities, such as shares, property or fixed interest assets. A trust qualifies as a MIT if it meets certain requirements for the income year it is in operation. MITs (and their members) are…

Tax Bills to lapse when election called and both houses of the Federal Parliament were dissolved

The Governor-General has accepted the Prime Minister’s advice to dissolve both Houses of Federal Parliament simultaneously with effect from 9am on Monday, 9 May 2016, to enable an election for both Houses to take place on Saturday, 2 July 2016. The Government is now in Caretaker Mode. With the issue of writs on Mon 9.5.2016, for the holding of the 2016…

‘Digital currency – Game Changer or Bit Player’: Government response to Senate Economics References Committee Report

The Government, on Thursday 5.5.2016, announced the release of the Government’s response to the Senate Economics References Committee’s report on the Inquiry into Digital Currency: ‘Digital currency – game changer or bit player’ released 4 August 2015. In announcing the release of the Government’s response, the Assistant Treasurer said the Government was “committed to fostering innovation in the…

PCG 2016/7 – GST joint ventures in energy and resource industry: Practical Guidance on supplies when there are common participants or operators or both

On Fri 6.5.2016, the ATO released Practical Compliance Guideline PCG 2016/7 (GST Joint Ventures in the energy and resource industry). The ATO says the Guideline provides a practical compliance approach to the GST treatment of supplies made between 2 GST joint ventures with common participants, as well as supplies made involving a GST joint venture where the supplier is…

Recommendations on 2015 Annual Report of the ATO – Standing Committee on Tax and Revenue’s report handed down

The House of Representatives Standing Committee on Tax and Revenue on Thursday, 5.5.2016, tabled its first report in the House of Reps on the 2015 Annual Report of the ATO. The Committee made the following recommendations: That the ATO make a clear public statement of its timetable for the transition to the new tax agent platform. In order…