Category Archives: Tax Month – November 2018

‘Tampon Tax’ gone – Health Minister makes a s38-47 determination, making the supply of various ‘feminine hygiene products’ GST-free from 1 January 2019

On 26.11.18, Health Minister Hunt, made the A New Tax System (Goods and Services Tax) (GST–free Health Goods) Determination 2018, which removes GST on feminine hygiene products from 1 January 2019. This has been done by way of a ‘determination’ under s38-47(1) of the GST Act, which provides that the Health Minister may make the supply of…

ATO appoints provisional liquidator for 8 labour hire businesses – preserve assets and records whilst ‘broader enforcement’ action is underway

On 29.11.18, the ATO announced that it had successfully applied to the Federal Court for the appointment of a provisional liquidator for 8 labour hire businesses providing services to the meat processing and abattoir industry. Provisional liquidators have been appointed for Ausmart Services Pty Ltd, Ezyrol Trading Pty Ltd, Gamma One Pty Ltd, Goyx Pty…

‘Small business’ – Minister announces support for resolving Federal tax disputes: (1) new Concierge service for advice about an AAT appeal and (2) special division in the AAT for post application support and legal fee support, if ATO appeals AAT decision

On  29.11.18, the Assistant Treasurer, announced that the  Government will make it easier, cheaper and quicker for small businesses to resolve tax disputes with the Australian Taxation Office (ATO) by:  establishing a Small Business Concierge Service within the Australian Small Business and Family Enterprise Ombudsman’s office, to provide support and advice about the Administrative Appeals…

Burton v CofT – only 50% ‘foreign income tax offset’ (FITO) for US capital gains tax, levied on the whole gain (because of our 50% CGT discount)

On 27.11.18, the Federal Court held that a taxpayer, was only entitled to a Foreign Income Tax Offset, for 50% of the US tax paid, on the sale of investments, as only half the capital gain had been included in his Australian ‘assessable income’ (after applying the standard 50% CGT discount, for assets held for…

APRA releases superannuation statistics for September 2018 – $2.7b total assets, SMSFs $775b, equities 51%, Rate of Return 8.1%, Industry Funds 48 (SMSFs 500k)

On 27.11.18, the Australian Prudential Regulation Authority (APRA) released its Statistics reports for the September 2018 quarter. Total asset sizes, by category of superannuation funds – at 30 September 2018 (compared with 30 Sept 2017): Total superannuation assets: $2,759 b (+8.8% over $2,536 billion – one year earlier) Total ‘APRA regulated’ assets: $1,808 b (+10.4% over $1,637 b – one…

Sandini Pty Ltd v Ellison & ors. v CofT – ATO’s ‘Decision Impact Statement’ – Subdiv 126-A Family Law Rollover must be ‘to’ a spouse, can be from a trust, must result in ‘change of ownership’ and must be ‘because’ of the Court order

Sandini Pty Ltd atf the Karratha Rigging Unit Trust & Ors v. Ellison & Ors v. Commissioner of Taxation of the Commonwealth of Australia & Ors Full Federal Court decision: [2018] FCAFC 44 High Court of Australia – refusal to give leave to appeal: [2018] HCA Trans 190 Précis This case concerns the availability of marriage breakdown…

Div 293 Superannuation tax assessment notices to issue in December 2018 to individuals over the newly reduced ‘high’ income threshold – 15% tax on ‘low tax contributions’ (new notices with more info)

On 27.11.18, the ATO advised that it will begin issuing superannuation Division 293 tax assessments in December 2018. The ATO said it has redesigned the notice of assessment for Division 293 tax to include further details to explain: what Div 293 tax is, why the additional tax applies, how much additional tax needs to be paid and what…

‘Excess super contributions’ – ATO begins issuing ‘determinations’ for 2017/18 (first after universal $25k cap came in) with amended assessments and ‘authorities’ to super funds for release of money to ATO to pay the contributor’s tax

On 27.11.18 the ATO posted an article saying it has begun issuing determinations for excess concessional contributions (ECC) for the 2017-18 financial year. The ATO said it will be issuing a higher volume of ECC determinations for 2017-18, following the reduction in the concessional contributions cap to $25,000 for all taxpayers. Taxpayers who receive an…

Ransley v CofT – Profit on sale of mining shares assessable as ‘ordinary income’ – not a capital gain protected by ‘scrip for scrip’ rollover – 50% ‘reckless’ penalty upheld

The AAT has decided that the profit on the sale of shares was assessable income and not, as contended by the taxpayer, a capital gain. The taxpayer was a shareholder in a company (DCM) which was granted an Exploration Licence in respect of the Doyles Creek tenement. The taxpayer was also a shareholder in ResCo,…

TA 2018/3 – Tax Alert relating to GST underreported by developers on development works on land from Government Entities – including by mis-applying the ‘margin scheme’

On Mon 26.11.2018, the ATO released Taxpayer Alert TA 2018/3 – GST implications of certain development lease arrangements. It relates to GST which the ATO says has been under reported by developers, on development works undertaken on land acquired from Government Entities. The ATO gives 2 examples: The first is where a Government Entity supplies land,…