Category Archives: Tax Month – November 2012

*Re Davenport and FCT – Fund received contribution on 27 June but kept it in suspense until 1 July remittance advice – no special circumstances warranting reallocation to earlier period [73]

The AAT has agreed with the Commissioner’s decision not to exercise his discretion to reallocate excess super contributions to the previous financial year as it considered there were no special circumstances. On 27 June 2008, the taxpayer’s super fund received 4 Electronic Funds Transfer (EFT) payments from the taxpayer’s employer. As the super fund was…

Re Peach and FCT – Early access to SMSF money assessable – trustee could not be reasonably satisfied that member ‘retired’ from the work force [72]

The AAT has upheld the Commissioner’s decision to count money withdrawn from a self-managed superannuation fund (SMSF) in breach of the SIS Act as part of a taxpayer’s assessable income under s 304-10 of the ITAA 1997. In 2003, the taxpayer borrowed money from his SMSF to build a yoga studio at his home where…

Re Australian Medical Services Pty Ltd and FCT – SGC correctly calculated from beginning of the quarter to default assessment and no power to remit back to date of contributions [70]

The AAT has held that the nominal interest component of a super guarantee charge (SGC) imposed on the taxpayer was correctly calculated. In addition, the Tribunal also held there was no discretion for the Commissioner to remit the nominal interest component of the SGC. The taxpayer was an employer that was late in making super…

Re Dickinson and FCT – Excess super contributions tax: no special circumstances [69]

The AAT has agreed with the Commissioner that the circumstances surrounding a taxpayer’s excess super contributions did not constitute “special circumstances” under s 292-465 of the ITAA 1997. Accordingly, it held the Commissioner’s discretion should not be exercised to reallocate the excess contributions to another year. The taxpayer made excess contributions into a super fund…

Re Hamad and FCT – Excess contributions tax assessment set aside – special circumstances existed because he scrutinized payslips [68]

The AAT has found that special circumstances existed in a taxpayer’s situation to allow for the Commissioner’s discretion in s 292-465(1) of the ITAA 1997 to reallocate monies paid into a super fund on 28 and 28 July 2009 to be attributed to the 2008-09 financial year. The taxpayer exceeded the concessional contributions cap for the 2009-10 financial…

SMSF trustee penalties; scheme promoters; roll-overs: Bills introduced [67]

The Superannuation Legislation Amendment (Reducing Illegal Early Release and Other Measures) Bill 2012 and Income Tax Rates Amendment (Unlawful Payments from Regulated Superannuation Funds) Bill 2012 were introduced into the House of Reps on Thur 29.11.2012. The Bills seek to implement the following Stronger Super measures for the self-managed superannuation fund (SMSF) sector: – an…

Stronger Super reforms – MySuper and insurance: draft regs released [66]

The Government on Thur 8.11.2012, released for comment draft regulations to give effect to changes arising from legislation implementing MySuper and governance reforms. The draft regulations contain provisions relating to:  (i) significant event notice requirements;  (ii) insurance requirements in respect of death;  (iii) meaning of permanent incapacity;  (iv) operating standards on self-insurance and permitted types…

*Various Super Bills pass all stages and await or receive Royal Assent [65]

The following Bills have passed all stages as follows: Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Bill 2012 passed all stages on 22.11.12 and obtained Royal Assent as Act No. 158 of 2012 on 28.11.12. This Act reinstated the temporary loss relief and asset roll-over in Div 310 of the ITAA 1997…

Final tranche of MySuper reforms – Bill introduced [64]

The Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012 was introduced into the House of Reps on Thur 29.11.2012. The Bill contains what the Minister for Superannuation said was the 4th and final tranche of the MySuper and governance measures as part of the Stronger Super reforms. The Bill proposes to make…

Third tranche of MySuper Legislation (Transparency Measures Bill) – 17 Government Amendments and moves to Senate [63]

The Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 was passed by the House of Reps on Wed 28.11.2012, with 17 Government amendments and now moves to the Senate. The Bill is the third tranche of MySuper legislation and proposes measures relating to the transition of accrued default balances to MySuper by 1…