Non-arm’s length income (NALI) applies a 45% tax to both ordinary and statutory income of a superannuation fund. A net capital gain is statutory income. However, how does NALI interact with the capital gains tax (CGT) provisions? The ATO has recently released Tax Determination (TD) 2024/5 to outline its current view on the interaction between [read more]
In light of recent changes to the professional and ethical obligations on tax practitioners, it is important for clients and advisers to consider who to seek guidance from. This article discusses certain advantages of engaging a lawyer for advice or assistance. Background The Tax Agent Services Act 2009 (Cth) (TASA) has recently been amended to [read more]
A recent Federal Court decision has held that a transfer of units in a unit trust to an SMSF was void pursuant to s 128B of the Bankruptcy Act 1966 (Cth) (BA). The decision of Ruhe (Trustee) v Rodmarg Pty Ltd, in the matter of Bankrupt estates of Power [2024] FCA 638 demonstrates the circumstances [read more]
Overview A company may act in a range of roles, including where it trades or invests in its own right, or where it acts as the trustee of an SMSF or a trust such as a discretionary, unit or bare trust. Having the right constitution and related documents is therefore prudent. Moreover, having up to [read more]
Legislation was introduced that includes the non-arm’s length expense (NALE) changes has finally become law almost five years from the date the legislation now takes retroactive effect (ie, from 1 July 2018). The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2023 (Act) includes a limit on general NALE for [read more]
This is part 9 of our series of ‘employee versus contractor’ articles. Part 9 focuses on the ATO’s recent decision impact statement (DIS) on the Full Federal Court (Full Court) in Jamsek v ZG Operations Australia Pty Ltd (No 3) [2023] FCAFC 48 (Jamsek). The other articles (parts 1-8) are linked under the Related Articles [read more]
This is part 8 of our series of ‘employee versus contractor’ articles. Part 8 focuses the ATO’s decision impact statement (DIS) on the Full Federal Court (Full Court) in JMC Pty Ltd v Commissioner of Taxation [2023] FCAFC 76. (The other articles, parts 1-7, are linked under the Related Articles heading below.) Overview The DIS [read more]
A recent AAT decision demonstrates circumstances of a successful challenge to a disqualification made pursuant to s 126A of the Superannuation Industry (Supervision) Act 1993 (Cth) (SISA). The decision of Merchant v Commissioner of Taxation [2024] AATA 1102 also highlights the dangers of what may, at face value, seem like ordinary investments such as acquiring [read more]
Unless carefully managed, unpaid present entitlements (UPEs) and beneficiary accounts in family/discretionary trusts can give rise to significant tax risks. Section 100A anti-avoidance provisions Section 100A of the Income Tax Assessment Act 1936 (Cth) (ITAA 1936) is an anti-avoidance provision that applies to arrangements where one person receives a benefit from a trust but another [read more]
This is part 7 of our series of ‘employee versus contractor’ articles. Part 7 focuses on recent changes by the Federal Government to the definition of ‘employer’ and ‘employee’ in the context of the Fair Work Act 2009 (Cth) (FWA). The other articles (parts 1-6) are linked under the Related Articles heading below. Overview The [read more]
