Update: Measure regarding changes to CGT main residence exemption now introduced to Parliament

Update: Measure regarding changes to CGT main residence exemption now introduced to Parliament

As previously reported in November 2017 (see here), the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 introduced to the Parliament in October of that year dropped, without notice or explanation, reference to the proposed change to the CGT main residence exemption as that exemption applies to foreign residents.

GST withholding: legislation introduced to Parliament

GST withholding: legislation introduced to Parliament

On 7 February 2018 the Commonwealth Government introduced into Parliament legislation which if enacted will, subject to a transitional rule (discussed further below), require from 1 July 2018 that purchasers of taxable supplies of new residential premises or new subdivisions of potential residential land pay either 1/11, or 7% if the margin scheme applies, of the purchase price to the Australian Taxation Office (ATO) at settlement (the Legislation). 

Sladen Snippet - Aussiegolfa part 1 - the in-house asset rules and what is an interest in a trust?

Sladen Snippet - Aussiegolfa part 1 - the in-house asset rules and what is an interest in a trust?

The recent decision of Aussiegolfa v FCT is an important decision for considering two aspects of the superannuation laws that are not often considered by the Courts, the in-house asset rules and the sole purpose test. This snippet looks at the former, another snippet looks at the latter.

Sladen Snippet - Aussiegolfa part 2 – Court finds SMSF to be in breach of the sole purpose test

Sladen Snippet - Aussiegolfa part 2 – Court finds SMSF to be in breach of the sole purpose test

The recent decision of Aussiegolfa v FCT is an important decision for considering two aspects of the superannuation laws that are not often considered by the Courts, the in-house asset rules and the sole purpose test. This snippet looks at the latter, another snippet looks at the former.

Sladen Snippet - Access to CGT Concessions to be tightened for ownership interests in companies and trusts from 1 July 2017

Sladen Snippet - Access to CGT Concessions to be tightened for ownership interests in companies and trusts from 1 July 2017

On 8 February 2018, the Government released for public consultation exposure draft legislation to implement the announcement in the 2017 Budget regarding integrity improvements to the small business capital gains tax (CGT) concessions.

Is Your Business Ready for New Data Notification Laws?

Is Your Business Ready for New Data Notification Laws?

Did you know that as of 22 February 2018, your business may be required to notify the Australian Information Commissioner if you experience a data breach?  Is your business ready?  Do have a data breach response plan in place?

Sladen Snippet - Consumer protection laws set to be strengthened

Sladen Snippet - Consumer protection laws set to be strengthened

The Federal Government has released draft versions of legislation and regulations to strengthen consumer protection laws.  The changes would give effect to proposals contained in the 2017 Australian Consumer Law (ACL) Review Final Report agreed to by Commonwealth, State and Territory Consumer Affairs Ministers last year.  The public has until the end of February to submit views on the draft changes. 

Sladen Snippet – Due date for SMSF 2016/17 tax returns extended to 2 July 2018

Sladen Snippet – Due date for SMSF 2016/17 tax returns extended to 2 July 2018

The ATO has announced the extension of the lodgment date for self managed superannuation (SMSF) annual returns for the 2016/17 year to 30 June 2018. Because 30 June 2018 falls on a Saturday, the ATO has confirmed the lodgment can occur on Monday 2 July 2018 without penalties.  

Sladen Snippet - Recent case: GST is a four-letter word

Sladen Snippet - Recent case: GST is a four-letter word

The Victorian Court of Appeal recently successfully allowed an appeal from the Supreme Court concerning the GST treatment of a property sale. The decision, in fact both decisions, illustrate the importance of ensuring that the contract of sale correctly sets out whether the price includes or excludes GST and the required due diligence including legal advice needed before signing such contracts.

Trust vesting: draft ATO Ruling on trust vesting

Trust vesting: draft ATO Ruling on trust vesting

The Commissioner issued Draft Taxation Ruling TR 2017/D10 “Income Tax: Trust Vesting – amending the vesting date and consequences of a trust vesting” on 13 December 2017.

The views in TR 2017/D10 are not materially different from those expressed at recent public forums, although TR 2017/D10 states those views in an administratively binding form and provides further detail (including several examples).

Foreign trusts, capital gains, and Australian beneficiaries – ATO finalises view

Foreign trusts, capital gains, and Australian beneficiaries – ATO finalises view

The Australian Taxation Office (ATO) finalised Tax Determinations TD 2017/23 and TD 2017/24 on 13 December 2017. Released in draft in November 2016, the Determinations consider certain aspects of the interaction of the capital gains provisions and the trust assessing provisions in Division 6 as those provisions apply to foreign trusts. In particular, where a foreign trust makes a capital gain on assets that are not taxable Australian property (TAP) and distributes that gain to Australian beneficiaries.

Sladen Snippet - What is “market value” for the purpose of the MNAV test

Sladen Snippet - What is “market value” for the purpose of the MNAV test

In Commissioner of Taxation v Miley, the Federal Court overturned decision of the Administrative Appeals Tribunal (AAT) concerning the share valuation method for the purposes of the maximum net asset value (MNAV) test in s 152-15 of the Income Tax Assessment Act 1997.

Sladen Snippet - ATO to disclose overdue tax debts to credit agencies

Sladen Snippet - ATO to disclose overdue tax debts to credit agencies

In the 2016-2017 Economic and Fiscal Outlook (http://www.budget.gov.au/2016-17/content/myefo/download/09-Appendix-A-Revenue.pdf), the Government announced that the Australian Taxation Office (ATO) would be allowed to report to credit reporting agencies the tax debt information of entities that don’t effectively engage with the ATO to manage those tax debts.

Sladen Snippet: TD 2017/20 confirms the ATO interpretation of “distributes” for the purpose of the FTDT

Sladen Snippet: TD 2017/20 confirms the ATO interpretation of “distributes” for the purpose of the FTDT

As previously reported in June this year, the Australian Taxation Office (ATO) published the Draft Taxation Determination TD 2017/D1 altering their previous published interpretation of the meaning of “distributes” for the purposes of the family trust distribution tax (FTDT).

The draft tax determination has now been published in its final form as TD 2017/20, confirming that FTDT can apply where there is a “distribution” to a person who is not a beneficiary of the trust.

Sladen Snippet - GST: new rules for purchasers of new residential premises and new subdivisions of potential residential land

Sladen Snippet - GST: new rules for purchasers of new residential premises and new subdivisions of potential residential land

Following an announcement in the 2017 Budget (see our article here), the Government on 6 November 2017 released exposure draft legislation which if enacted will, subject to a transitional rule (below), require from 1 July 2018 that purchasers of taxable supplies of new residential premises or new subdivisions of potential residential land pay 1/11 of the purchase price directly to the Australian Taxation Office (ATO) at settlement. The 1/11 of the purchase price is irrespective of whether the margin scheme or otherwise applies to calculate the actual GST liability.

Sladen Snippet - foreign residents accessing the main residence CGT exemption – current status of this measure?

Sladen Snippet - foreign residents accessing the main residence CGT exemption – current status of this measure?

In the 2017 Budget on 9 May 2017, the Government announced a proposed change to the CGT main residence exemption as that exemption applies to foreign and temporary tax residents.  If enacted the announced change removed the CGT main residence exemption for foreign and temporary tax residents with effect from Budget night (9 May 2017).