PCG 2019/7 – Large APRA regulated Super Funds have until 30 June 2020 to get their systems into order to be able to reporting of ‘pension tax bonus’ amounts

On 2.10.2019, the Commissioner issued PCG 2019/7 regarding transitional compliance approach for large Australian Prudential Regulation Authority regulated superannuation funds that provide a ‘pension tax bonus’ to members where the superannuation funds are facing practical difficulties in complying with certain legislative requirements.

See below for the PCG.

FJM 6.10.19

[Tax Month – September 2019]


TD 2019/D9 – the ‘natural love and affection’ exclusion from Commercial Debt forgiveness – Commissioner proposes to change his position on forgiving companies

The Commissioner released Draft Determination TD 2019/D9, proposing to rule that the commercial debt forgiveness exclusion – for natural love and affection – must be human – conflicting with earlier ATO IDs about companies. They seek comments by 1 November 2019.

See below for the ruling and commentary.

FJM 6.10.19

[Tax Month – September 2019]

Gao v Tax Practitioners Board – No stay of tax agent registration terminations (535 over claimed deductions, over claimed interest, under declared GST and consistently late self-returns)

Australia Fortune Financial Group Pty Ltd (“AFFG”) and Mr Feng Gao (collectively “the Applicants”) had their registration as tax agents cancelled, on 27 August 2019, as a result of the problems mentioned. They applied for a stay of that decision, but failed – based on their prospects of success and the public interest. See below…

Taxation Guru Pty Ltd and Gambhir Watts v Tax Practitioners Board – no ‘stay’ of decision terminating their tax agent registration (for claiming deductions for unsupportable ‘work-related expenses’)

The AAT rejected applications, by Taxation Guru and its ‘supervising agent’ Mr Watts, to stay the AAT’s earlier terminating their registration (for claiming unsupportable ‘work-related expenses’).

See below for summary of decision.

FJM 6.10.19

[Tax Month – September 2019]



Limit to taxation concessions applicable to testamentary trusts – only income from deceased estate – draft legislation

In the 2018-19 Budget, the Government announced that it will implement an integrity measure to limit the taxation concessions applicable to the income of testamentary trusts to only income from the deceased estate assets. The measure would apply retrospectively, from 1 July 2019, and submissions are due by 30 October 2019. See below for more…

The impact of foreign acquirer land tax and duty surcharges – it started in Victoria and has spread across most state and territory jurisdictions with similar but different tests and ambit

The Tax Institute published its 4 October 2019 weekly opinion piece – this time from John Ioannou, CTA: a Partner in Deloitte Private and the Institutes Queensland State Chair. His article relates to the impact of foreign acquirer land tax and duty surcharges.

See below for the article.

FJM 6.10.19

[Tax Month – September 2019]

After APRA fails against IOOF – academics call for super fund ‘reserves’ to be better regulated and better scrutinised

On Thursday 26 September 2019, Janna Mather published an article in the Australian Financial Review, entitled: Super fund ‘reserves’ need greater scrutiny, academic says.  This also follows APRA’s failed case against IOOF entities and officers, but looks to future regulation of ‘reserves’ and scrutiny of their use. If followed articles published on 23.9.19 and 24.9.19…

APRA’s failed case against IOOF entities and officers – Where are we now after 873 paragraphs of Justice Jagot’s reasons? – 2 articles, 2 views

The Australian Financial Review two quite different articles about the the collapse of APRA’s case against against IOOF and some of its officers (where the Federal Court gave 873 paragraphs of reasons on 20.9.19). One article is written by Aleks Vickovich and Janna Mather is entitled: ‘Dangerous’ to read APRA’s loss as an IOOF win:…

IOOF, the ‘pub test’ and members’ money – an article about APRA’s failed action against various IOOF entities and officers

On 23 September 2019, Joanna Mather published an article in the Australian Financial Review, entitled: IOOF, the ‘pub test’ and members’ money.  This is about some of the anatomy and background to APRA’s unfortunate failure to prove that various of IOOF’s officers had failed in their duties as officers of the relevant trustees and ought…

APRA v Kelaher & Ors – Court finds against APRA, rules that APRA did not prove that IOOF breached the SIS Act and did not disqualify the relevant officers (some of whom had retired from IOOF by then)

On 20 September 2019, Justice Jagot, of the Federal Court of Australia, decided against the Australian Prudential Regulatory Authority (APRA) in it’s case against IOOF’s former Chief Executive Officer: Mr Chris Keleher and others. APRA bought this case following adverse findings, in the Hayne Financial Services Royal Commission, alleging that IOOF’s superannuation fund had done…