Attracting and retaining high performing employees can be key to ensuring the long-term success and growth of a business – a significant challenge for many Australian businesses navigating through COVID-19. Implementing an employee share scheme (ESS) or incentive plan can be an effective means by which businesses can attract, motivate, and retain valued employees.

The Federal Budget 2021-2022 is big on spending and small on major structural change to tax however there are a number of tax measures within the Budget to be aware of.

The 2021 Budget contained a number of exciting (and some unexpected) announcements regarding changes to superannuation. As the changes are mostly aimed at increasing flexibility and the ability of older Australians to contribute towards retirement, this is positive news for SMSFs.

Part IVC of the Taxation Administration Act 1953 gives taxpayers statutory avenues to argue, in the Administrative Appeals Tribunal (AAT) or Federal Court, that the substantive liability imposed by an assessment is excessive through a review or appeal of an objection decision. Where an assessment is found to be excessive, the Commissioner must amend the assessment.

We have previously discussed the Full Federal Court decision in Addy v FCT [2020] FCAFC 135 here. In this case, the court held that Ms Addy, a working holiday maker, was not entitled to benefit from the tax-free threshold as she was not an Australian tax resident. The so-called ‘backpacker tax’.

Cases on the making of self managed superannuation funds (SMSFs) non-compliant are relatively rare. Issuing a notice of non-compliance is one of the most severe penalties available in an SMSF context, given the taxation implications

Some of the key superannuation rates and thresholds, including the contribution caps and transfer balance cap, will increase from 1 July 2021.

As previously discussed here, the definition of non-arm’s length income (NALI) under the Income Tax Assessment Act 1997 was amended in mid-2018 to include non-arm’s length expenses or NALE. NALE includes not just an expenditure, but also a loss or outgoing that is lower than an arm’s length amount, and also includes where there is a nil amount (ie, no expenditure).

As discussed here, as part of the ATO COVID-19 administrative concessions, the ATO announced that temporary repayment relief could be offered for limited recourse borrowing arrangements (LRBA) loans. The repayment relief must reflect similar terms to what commercial banks offered for real estate investments loans as a result of COVID-19.

On 11 March 2021, the Australian Taxation Office (ATO) released Draft Taxation Ruling TR 2021/D2 on the operation of personal services income (PSI) rules and the personal services business (PSB) tests.

Individuals cannot currently claim a tax deduction under s 8-1 of the Income Tax Assessment Act 1997 for education and training expenses unless the expense leads to, or is likely to lead to, an increase in the individual’s income from current income-earning activities.

As discussed here and here, the decisions in Re Narumon [2019] 2 Qd R 247 and Re SB; Ex Parte AC [2020] QSC 139 made it clear (at least in Queensland) that:

The Australian Taxation Office (ATO) has issued Taxation Determination TD 2021/2 that contains the ATO view that companies which carry on a business will be unable to benefit from the small business capital gains tax (CGT) concessions if the relevant asset is mainly used to derive rent (TD 2021/2 was issued as Draft TD 2019/D4 that we discussed here).

The ATO has commenced issuing notices for its compliance program focusing on the “Next 5000” private groups in Australia. This article provides our top tips for preparing for an audit and how we can assist you in doing this.

With news and social media feeds being filled with tales of cryptocurrency (in particular bitcoin) prices fluctuating many taxpayers are making, or considering making, investments. However before jumping in taxpayers should understand that the anonymity that was originally touted as the shining crown of cryptocurrencies is not the invisibility cloak many may think it to be. What does the ATO really know about your cryptocurrency holdings and what do you need to disclose?

An intermediary limited recourse borrowing arrangement (LRBA) differs from a standard LRBA in that the bare trustee, rather than the SMSF trustee, enters into an LRBA borrowing as principal with a lender.

Land transfer duty is calculated on the dutiable value of the property. In Commissioner of State Revenue (Vic) v 1043 Melton Highway Pty Ltd [2020] VSC 820, the Supreme Court considered default interest is included in ‘consideration’ for the transfer of dutiable property.

As discussed here, the decision in Dental Corporation Pty Ltd v Moffet [2020] FCAFC 118 (16 June 2020) (Moffet) marked an important shift in how the courts have interpreted the employee/contractor distinction for the purposes of superannuation guarantee obligations.

The ATO has released a private binding ruling (Ruling) on the deductibility of certain expenses incurred by a self managed superannuation fund (SMSF) trustee in managing the SMSF’s share portfolio.

The coronvirus pandemic continues to have an impact on the health of Victorians and the econmy of the State. In recognition the Victorian Government continues to provide a number of state tax and duty relief measures to assist Victorians with the economic impact of the pandemic.