Category Archives: Tax Month – May 2018

State Taxation Acts Amendment Bill 2018 (Vic) – changes to the Duties Act to reverse the ‘Danvest’ partnership interest decision, widen the foreign purchaser definition and other changes – Act No 22 of 2018

On 1 May 2018, the Victorian Treasurer introduced the State Taxation Acts Amendment Bill 2018  into Parliament. Amongst other proposed amendments, there are some noteworthy changes to the Duties Act 2000 (Vic). The Bill passed all stages on 5 June 2018 and received Royal Assent 8 days later on 13 June 2018. The Royal Assent…

Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018 – to extend the ‘Small Business Entity’ instant asset write-off, by 12 months, to 30 June 2019 – Senate Committee recommends passing Bill

The Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018 will extend the ‘Small Business Entity’ instant asset write-off by 12 months, from 30 June 2018, to 30 June 2019. The Bill was was introduced in the House of Reps  on 24 May 2018 and on 29 May 2018, the Senate Economics Legislation Committee…

Tax Month – May 2018

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – May 2018 Developments – This is a collection of developments in Australian tax law and practice that occurred in May 2018 which aims to be relevant to tax practitioners.[i] Compiled By F…

Decleah Investments Pty Ltd v CofT – GST: ‘margin scheme’ applied to taxpayer’s 1 July 2000 value – value based on discounting actual (not predicted) cash flows was ‘not contrary’ to the relevant professional valuation standards

The Federal Court has upheld an appeal against an AAT decision that the taxpayer had not provided an approved valuation when applying the margin scheme on the supply of subdivided lots. The ‘margin scheme’ can be applied to taxable supplies of ‘real property’ by way of sale (or grant of a long term lease) –…

$10k cash payment limit – Government commences consultation on this Budget ‘black economy’ measure to start on 1 July 2019

On Friday 25 May 2018, Treasury released a consultation paper to implement the 2018 Budget Measure to introduce an economy-wide cash payment limit of $10,000. It invites comments by 24 June 2018. Minister O’Dwyer also released a Press Release. The measure would apply from 1 July 2019. The Government proposes that a cash payment, over…

ATO updates its audit risk ‘guidelines’ on allocation of profits within professional firms

The ATO published the ‘Assessing the Risk: Allocation of profits within professional firms’ guidelines and ‘Everett Assignment’ web material in 2015, and said, at that time, they would be reviewed in 2017. In reviewing the guidelines the ATO become aware of situations that had misinterpreted the guidelines or gone beyond the scope of the guidelines.…

Post Budget meeting of ATO’s ‘Professional Firms Working Group’ – income splitting guidance after crimping Small Business CGT relief exposes many ‘Everett’ assignments again

The ATO has established a ‘Professionals Firms’ Working Group’ to consult on what is acceptable, and unacceptable, allocation of profits within professional firms (put bluntly: how much income splitting is ok). This group has been meeting since the Commissioner suspended his guidance, on this subject, on 14 December 2017 [see related TT Article]. This group…

Allocation of profits within professional firms – a flurry of recent developments

There has been a lot of activity around the allocation of profits within professional firms, in the last 6 months (December 2017 to May 2018). The key events and (where applicable) related Tax Technical articles, are set out below. On 14 December 2017, the Commissioner of Taxation ‘suspended’ (not cancelled) his 2015 guidance on what…

Budget Measure – limiting CGT Concessions to partners of ‘small’ partnerships, resulting in many ‘Everett’ assignments of partnership interests being subject to prohibitive CGT again

In the 2018 Federal Budget, the Government announced a change to the Small Business CGT Concessions (in Div 152 of the ITAA97) that would adversely affect many partners who ‘alienate’ their partnership income assigning their interest in the professional partnership, to a related entity (and thus ‘split’ what would otherwise be, their income). Such assignments…

IGT will investigate the ‘Four Corners’ allegations that the ATO has abused its garnishee collections powers

On 16 May 2018, the Inspector General of Taxation’s (IGT) announced his investigation into the allegations made during the ABC Four Corners Program (aired on 9 April 2018), regarding the ATO’s use of ‘garnishee notices’. The Program quoted an ATO collections officer and the nub of his allegations was that ATO collections officers, particularly in…