Category Archives: Tax Month – October 2016

SMSF trustees using LRBAs to acquire assets – ATO announces voluntary survey to gather information (and NOT for compliance purposes)

The ATO will be contacting some self-managed super fund (SMSF) trustees in November 2016 to participate in a survey about the use of limited recourse borrowing arrangements (LRBA) to acquire assets for their SMSF. The ATO said the survey is part of research to learn more about SMSFs’ use of LRBAs. It said participation is voluntary and…

Law Enforcement Legislation Amendment (State Bodies and Other Measures) Bill 2016 introduced – greater access to Cwth information and powers to state authorities and rectifying meaning of ‘lawfully acquired’ (proceeds of crime)

The Government introduced the Law Enforcement Legislation Amendment (State Bodies and Other Measures) Bill 2016 into the House of Reps on Wed 19.10.2016. This Bill will amend the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, Australian Postal Corporation Act 1989, Crimes Act 1914, Criminal Code Act 1995, Privacy Act 1988, Proceeds of Crime Act 2002,…

CR 2016/73-80 – CGT scrip-for-scrip roll-overs; special dividend; early retirement scheme

On Wed 19.10.2016, the Commissioner issued the following Class Rulings: CR 2016/73: Scrip-for-scrip roll-over – Caledonia group reorganisation: Caledonia Australia Trust; CR 2016/74 Scrip-for-scrip roll-over – Caledonia group reorganisation: Caledonia Australia No 2 Trust; CR 2016/75: Scrip-for-scrip roll-over – Caledonia group reorganisation: Caledonia Small Caps Trust; CR 2016/76: Scrip-for-scrip roll-over – Caledonia group reorganisation: Caledonia…

PCG 2016/10 – FBT: Fleet cars and simplified representative average business use approach for calculating car fringe benefits for 20+ employer chosen fleets under luxury car tax threshold

On Wed 19.10.2016 the Commissioner issued Practical Compliance Guideline PCG 2016/10 (Fleet Cars: simplified approach for calculating car fringe benefits). The PCG outlines a simplified approach for calculating car fringe benefits that is expected to reduce the record-keeping burden on employers with large fleets by allowing them to rely on a representative average business use…

Re FKYL and FCT- sale of 4 new residential premises taxable – not rented for 5 years; ‘margin scheme’ did not reduce tax (no written agreement); building costs not fully creditable (non-creditable rental); 25% shortfall penalty

The AAT has held that 4 properties sold by a taxpayer (a sole trader property developer) were new residential premises and therefore subject to GST. The taxpayer was registered for GST bought each of the 4 properties under the margin scheme and built residences on each of them for the purposes of sale. She did…

WA land tax: Rapp and Comr of State Revenue – land tax imposed on the portion of the PPR exempt land that became non-exempt on the subdivision (up to 5 years before the subdivision under the Act)

A taxpayer has been unsuccessful before the WA State Administrative Tribunal in a matter concerning the construction of s14 of the Land Tax Assessment Act 2002 (WA). In 2007, the taxpayer and her husband (now deceased) acquired a 16 hectare property which included 2 houses. Land tax was payable until May 2015 when the taxpayer informed…

NSW payroll tax: The National Institute of Dramatic Art (NIDA) v Chief Comr of State Revenue – despite being charitable, payroll tax exemption refused under ‘school or college’ carve out – ‘school like activities’ predominant

On Mon 17.10.2016, the NSW Supreme Court refused a taxpayer’s application for a payroll tax refund for the period 1 July 2009 to 30 June 2014. The National Institute of Dramatic Art (NIDA) (the taxpayer) sought a refund of $2,540,040 of Payroll Tax, contending that its wages were exempt pursuant to cl 12(1)(c) of Sch 2 to the Payroll Tax Act…

Qld payroll tax: Brisbane Bears – Fitzroy Football Club Ltd v Comr of State Revenue – payment for the right to use the image of players for marketing and promotional purposes held to be taxable ‘wages’

On Fri 14.10.2016, the Qld Supreme Court dismissed an appeal by the Appellant football club to payroll tax assessments, to the extent that it included, as wages, amounts paid for the use of images of players and coaches  for the Club’s promotion and marketing. There was a Collective Bargaining Agreement covering, amongst other things, the…

Superannuation reforms – tranche 3 – reducing non-concessional contributions limit from $180k to $100k pa and simplifying ‘release authority’ provisions

Superannuation reforms – tranche 3 – reducing non-concessional contributions limit from $180k to $100k pa and simplifying ‘release authority’ provisions On Friday 14.10.16, the Government released Tranche 3 of the draft legislation to implement its 2016-17 Budget superannuation reforms: exposure drafts of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 and the relevant…

Tasmanian taxes: Taxation and Related Legislation (Miscellaneous Amendments) Bill 2016 – harmonise payroll tax for owner-drivers; duty of vesting of dutiable property and tax free land tax threshold for sporting clubs etc.

The Taxation and Related Legislation (Miscellaneous Amendments) Bill 2016 (Tas) has passed all stages without amendment received Royal Assent as Act No 46 of 2016. It amends the following Tasmanian Acts: the Payroll Tax Act 2008; the Duties Act 2001; the Land Tax Act 2000; the First Home Owner Grant Act 2000; and the Taxation…