Higher education HELP changes announced – A package of reforms affecting the Higher Education Loan Program (HELP) is expected to take effect generally from 1 January 2018.
Super reforms from 1 July 2017 – Superannuation changes related to the new $1.6 million transfer balance cap are now coming into effect.
Draft legislation: LRBA integrity measures for pension cap – Exposure draft legislation has been released proposing integrity measures for limited recourse borrowing arrangements (LRBAs) as part of the super reforms.
Senate Committee holds corporate tax avoidance hearing – A public hearing was recently held in Perth as part of the inquiry into corporate tax avoidance and minimisation.
Higher education HELP changes: faster repayments and threshold changes – The Minister for Education and Training has announced a package of higher education reforms to be confirmed in the Federal Budget.
Deductions for super funds: major ruling update – The ATO has issued Addendum to Taxation Ruling TR 93/17 to clarify and update the Commissioner’s views on deductions available for superannuation funds.
Bill to reduce corporate tax rate – The Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 has been introduced.
Budget updates – Information about the announcements on introducing a charge for foreign owners of under-used residential property, restricting foreign ownership within new developments and introducing tougher residency rules for pensioners.
Transfer pricing – The Full Federal Court has found Chevron Australia’s loan arrangement with a related US company was not at arm’s length. The ATO has also released draft information about its compliance approach to related-party financing arrangements.
Car expenses for transporting equipment disallowed – A taxpayer been denied deductions for work-related car expenses.
Draft legislation: financial complaints and dispute resolution – A new one-stop shop for financial disputes, the Australian Financial Complaints Authority (AFCA), will be established.
Tax assistance for people affected by Cyclone Debbie – The ATO will fast-track refunds and provide a range of other tax-related supports for individuals and businesses within affected areas in Queensland and New South Wales.
ATO adds value to developing financial literacy – The ATO is helping teachers add tax and super to their classes this year with dedicated educational resources.
Does your business import or export goods and services? – A reminder to business owners about the GST obligations associated with import/export activities.
Senate Committee holds corporate tax avoidance hearing – A public hearing was recently held in Perth as part of the inquiry into corporate tax avoidance and minimisation.
Higher education HELP changes: faster repayments and threshold changes – The Minister for Education and Training has announced a package of higher education reforms to be confirmed in the Federal Budget.
Super guarantee non-compliance: Senate Committee report – A report has called for the ATO to take a more proactive stance regarding employers’ super guarantee non-compliance.
Illegal SMSF early access scheme leads to $6,000 fine – A Melbourne man has been found guilty of operating a financial services business without an AFS licence and promoting an illegal SMSF scheme.
Ride-sharing drivers must register for GST – the ATO has advised that Uber drivers must register for GST, regardless of how much they earn from providing ride-sharing services.
Tax offset for spouse super contributions – the ATO has reminded taxpayers that from 1 July 2017 the assessable income threshold for claiming a tax offset for contributions made to a spouse’s superannuation fund will increase to $40,000.
ATO to visit certain small businesses – the ATO will be visiting restaurants and cafés, hair and beauty businesses across Perth and Canberra in April with a focus on cash economy issues.
Super reforms – Draft Law Companion Guideline LCG 2017/D3 deals with the treatment of superannuation death benefit income streams under the $1.6 million pension transfer balance cap.
Deductions for carried-forward company losses – the AAT has found that a company was not entitled to deductions for carried-forward losses because it did not meet the relevant “continuity of ownership” and “same business” tests.
Overseas income not exempt from income tax – the AAT has found that income a taxpayer earned from overseas was not exempt from Australian income tax under s 23AF of ITAA 1936 because the work was not on an “approved project”.
GST on low-value imported goods – the long-awaited Bill has been introduced into Parliament to impose GST on supplies of imported goods worth less than A$1,000.
Re-characterisation of income from trading businesses – the ATO is reviewing arrangements that fragment integrated trading businesses to re-characterise trading income into more favourably taxed passive income.
Research and development claims in building and construction industry – the ATO has issued a warning to taxpayers who seek to deliberately exploit the Research and Development (R&D) Tax Incentive program.
Intangible capital improvements made to a pre-CGT asset – TD 2017/1 provides that intangible capital improvements can be a separate CGT asset from the pre-CGT asset to which those improvements are made.
Personal services income diverted to SMSFs – the ATO has extended its related penalty remission offer until 30 April 2017.
Depreciating assets: composite items – Draft TR 2017/D1 deals with determining whether a composite item is itself a depreciating asset or whether its component parts are separate depreciating assets.
Tax risk management and governance review guide – the ATO has released a guide to tax risk management and governance review to help businesses develop and test their tax-related governance and internal control frameworks.
Overtime meal expenses disallowed – a taxpayer has failed in claiming deductions for overtime meal expenses, because he was not paid an allowance under an industrial agreement.
Time extension to review objection decisions disallowed – the Administrative Appeals Tribunal (AAT) has refused to grant a taxpayer an extension of time to apply for review of the Commissioner’s decision to disallow his objections.
No deduction or capital loss for apparent guarantee liability – the AAT has denied two family trusts a deduction or capital loss of $4.3 million in guarantee liabilities due to a lack of credible evidence of a guarantee.
Taxpayer denied deduction for work expenses of $60,000 – the AAT has confirmed that a mechanical engineer was not entitled to deductions for work-related expenses totalling $60,000.
ATO priority on settling cases – The ATO places a high priority on resolving tax disputes early, including through reaching settlements where appropriate.
ATO develops work-related expenses risk profiles – The ATO has developed work-related expenses risk profiles to help it identify how work-related expense deduction amounts compare for similar taxpayers.
Onus on taxpayers to show no fraud or evasion – The Full Federal Court has confirmed that a taxpayer bears the onus of proving the absence of fraud or evasion where the Commissioner has issued an assessment “out of time” on the basis of “fraud or evasion”.
No disclaimer of trust interest – The AAT has ruled that a taxpayer could not argue she had disclaimed her interest in trust income because the disclaimer had not been raised in her original objection to the relevant amended assessments.
Admin penalties of 75% for failing to lodge FBT returns – The AAT has confirmed that 75% administrative penalties were rightfully imposed on several companies that failed to lodge FBT returns over a four-year period.
New ATO data-matching program: ride sourcing – The ATO has advised of a new data-matching program to identify individuals who may be engaged in providing ride-sourcing services.
Taxation ruling on commercial website deductibility – In TR 2016/3, the ATO sets out the tax deductibility of expenditure to set up and maintain a business website.
Taxation determination on deductions for bad debts – The ATO has issued TD 2016/19 stating that a trust beneficiary is not entitled to a deduction for an unpaid present entitlement that they purport to write off as a bad debt.
Taxpayers failed to prove that payments were “loans” – The Full Federal Court has found that several Australian companies had not proven the payments they received from overseas companies should not be considered income.
Contrived trust arrangements in ATO sights – The ATO has cautioned taxpayers against arrangements that seek to minimise tax by creating artificial differences between the taxable net income and distributable income of closely held trusts.
GST and countertrade transactions – The ATO has issued a Practical Compliance Guideline which sets out its compliance approach, in the context of GST, to entities that enter into countertrade transactions as part of carrying on their enterprise.
Companies held to be resident and liable to tax in Australia – In a long-running saga, the High Court has unanimously dismissed the appeals of four corporate taxpayers.
Payment was assessable as “deferred compensation” – The High Court has held that payments made to a taxpayer pursuant to an incentive “profit participation plan” after termination of his employment were income according to ordinary concepts.
ATO data-matching programs continue – The ATO has advised that it will continue with data-matching programs relating to share transactions, debit and credit card transactions and online selling.
Tax debt release applications refused – The Administrative Appeals Tribunal has recently refused the applications of two individuals who sought to be released from their tax debts.
Budget superannuation changes on the way – The Federal Government has been consulting on draft legislation to give effect to most of its 2016–2017 budget superannuation proposals.
Primary producer income tax averaging – Primary producers will be able to access income tax averaging 10 income years after choosing to opt out.
R&D tax incentive rates change – The Federal Government has reduced the R&D tax incentive rates for the first $100 million of eligible expenditure by 1.5 percentage points.
SMSF related-party borrowing arrangements – The ATO has issued a tax determination concerning non-arm’s length income and limited recourse borrowing arrangements.
Travel expense and transport of bulky tools claim denied – An individual has been unsuccessful before the AAT in a matter concerning certain deduction claims for work-related travel expenses.
Personal middle income tax rate cut on the way – The Government is increasing the third personal income tax threshold that applies to personal income taxpayers.
Small business tax breaks in the pipeline – A Bill has been introduced which proposes, among other things, to lower the company tax rate to 25% by 2026–2027.
Single touch payroll reporting legislative changes – A Bill to establish a new reporting framework, Single Touch Payroll (STP), has been introduced in Parliament.
Take care with work-related deduction claims, says ATO – The ATO has reminded individuals to make sure they get their deductions right this tax time.
ATO eye on SMSFs and income arrangements – The ATO is aware of arrangements where individuals divert personal services income to an SMSF to minimise their income tax obligations.
Social welfare recipients data-matching program – The Department of Human Services is matching income data it collects from social welfare recipients with tax return-related data reported to the ATO
Share economy participants reminded of tax obligations – The ATO reminds people who earn income in the share economy that they have tax obligations.
Itinerant worker claim denied, so travel deductions refused – The AAT has held that a taxpayer was not an itinerant worker and therefore was not entitled to travel expense tax claims of some $38,000.
ATO flags retirement planning schemes of concern – The ATO has launched the Super Scheme Smart initiative to warn people about problematic retirement planning schemes.
Deductibility for gifts to clients and airport lounge membership fees – The ATO has clarified its views concerning businesses’ gifts to clients and employers’ payment of airport lounge membership fees for employees.
Changes to $500,000 lifetime super cap confirmed – The Federal Treasurer says there will be some changes to the proposed $500,000 lifetime cap on non-concessional super contributions.
Home exempt from land tax for “world-traveller – A world-travelling taxpayer has been successful in seeking a land tax exemption for his home located in Victoria.
