Many advisers favour automatically reversionary pensions (ARPs) as a popular strategy for SMSF succession planning. Indeed, in recent times, ARPs have gained prominence and have often been seen as the default choice by many. For instance, some focus on the 12-month deferral of the transfer balance account (TBA) credit for the reversionary beneficiary, with the [read more]
The ATO is a large bureaucracy and produces a lot of guidance material. Thus it is important that advisers and taxpayers understand the range of material (or products) published by the ATO and the level of protection that each provides. Generally, the ATO feels bound by its published material from an administrative viewpoint. However, only [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) includes reporting provisions that require [read more]
The holiday home exemption (HH Exemption) from the vacant residential land tax (VRLT) in Victoria has been extended to holiday homes owned by companies, unit trusts, fixed trusts and discretionary trusts (DT) provided certain criteria is met. This extension was in the State Taxation Amendment Act 2024 (Vic) (STA Act) that was finalised as law [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]
Overview The Victorian Government has introduced a new tax regime on commercial and industrial property (CIP) in Victoria that starts on 1 July 2024. Broadly, the new tax relies on phasing out transfer duty over a 10-year period and replacing the upfront duty on subsequent transfers with an annual commercial and industrial property tax (CIPT). [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]
