Sladen Snippet – Loans in breach of SIS Act unenforceable – End of the world or confined to its facts?

Sladen Snippet – Loans in breach of SIS Act unenforceable – End of the world or confined to its facts?

In Colaciello Super Pty Ltd v Christensen [2023] VSC 568 the Supreme Court of Victoria held that a loan in breach of sections 62 and 65 of the Superannuation Industry (Supervision) Act 1993 (SIS Act) was unenforceable under the defence of illegality.

Sladen Snippet - The Krongold appeal – VCAT’s jurisdiction to hear matters involving federal legislation remains restricted

Sladen Snippet -  The Krongold appeal – VCAT’s jurisdiction to hear matters involving federal legislation remains restricted

On 17 August 2023, the Court of Appeal in the Victoria Supreme Court handed down its decision in Krongold v Thurin [2023] VSCA 191. This decision is a further instalment in a long running domestic building dispute between homeowners, David and Lisa Thurin (Thurin) and their builder, Krongold Constructions (Aust) Pty Ltd (Krongold).

Sladen snippet – JMC – right to delegate means no super guarantee

Sladen snippet – JMC – right to delegate means no super guarantee

The Full Federal Court, in the decision of JMC Pty Ltd v Commissioner of Taxation [2023] FCAFC 76, has effectively found that a right to delegate (unless such right is a sham) means a person will be a contractor (and not an employee) and won’t be engaged principally for their labour.

Sladen Snippet - Super to be paid on an employee’s payday

Sladen Snippet - Super to be paid on an employee’s payday

The Government has announced that, from 1 July 2026, employers will obligated to make super contributions at the same time they pay their employee’s their salary and wages (eg weekly, fortnightly or monthly). Currently, super must be made within 28 days of the end of each quarter.

Sladen Snippet - Jamsek – truck driver partnerships not eligible for super guarantee

Sladen Snippet - Jamsek – truck driver partnerships not eligible for super guarantee

The Full Federal Court has confirmed in Jamsek v ZG Operations Australia Pty Ltd (No 3) [2023] FCAFC 48 that a truck driver partnership was not eligible for super guarantee contributions.  The decision is an important decision in relation the application to super guarantee in relation to contractors and, in particular, partnerships and other entities.

Sladen Snippet – ATO warns on SMSF gift and loan back (asset protection) arrangements

Sladen Snippet – ATO warns on SMSF gift and loan back (asset protection) arrangements

In an interesting development, the ATO has released a warning in relation to SMSFs entering into gift and loan back arrangements.

Sladen Snippet – SMSF BDBNs not bound by SIS Regs – Hill v Zuda

Sladen Snippet – SMSF BDBNs not bound by SIS Regs – Hill v Zuda

In the much anticipated decision of Hill v Zuda Pty Ltd, the High Court has determined that regulation 6.17A of the Superannuation Industry (Supervision) Regulations 1994 (SIS Regs) does not apply to binding death benefit nominations (BDBNs) prepared for self managed superannuation funds (SMSFs).

Sladen Snippet – ATO confirms NALE practical administration approach is extended to 30 June 2023

Sladen Snippet – ATO confirms NALE practical administration approach is extended to 30 June 2023

The ATO has confirmed that its current administrative approach to the non-arm’s length expenditure (NALE), as set out in Practical Compliance Guide PCG 2020/5, will be extended to 30 June 2023.

Sladen Snippet – TD 2021/D5 genuine disposal restrictions in employee share schemes

Sladen Snippet – TD 2021/D5 genuine disposal restrictions in employee share schemes

Whether an employee has genuine restrictions on disposing of an option/right or share issued under an employee share scheme (ESS) can determine whether tax can be deferred, and until when, under the ESS.

Sladen Snippet - Company Director Identification Numbers are Here

Sladen Snippet - Company Director Identification Numbers are Here

The time to apply for a director identification number (Director ID) is almost upon us. Under the 2020 Budget Digital Business plan, the Federal Government announced the establishment of the new Australian Business Registry Services (ABRS).

Sladen Snippet - Retirement income covenant will not apply to SMSFs

Sladen Snippet - Retirement income covenant will not apply to SMSFs

On 27 September 2021 the government released exposure draft legislation to introduce a retirement income covenant (Draft Bill).

Sladen snippet - music teacher found to be employee for super guarantee purposes

Sladen snippet - music teacher found to be employee for super guarantee purposes

In the recent decision of Olias Pty Ltd as trustee for the Storer Family Trust and Commissioner of Taxation, the Administrative Appeals Tribunal (AAT) found that a “contract” music teacher fell within the ordinary definition of ‘employee’, and was therefore an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 (Cth) (SG Act).

Sladen snippet - ATO releases PSLA on how it will administer SIS Act penalties

Sladen snippet - ATO releases PSLA on how it will administer SIS Act penalties

From 1 July 2014, the ATO was granted power to issue administrative penalties to self managed superannuation fund SMSF) trustees for breaches of the Superannuation Industry (Supervision) Act 1993 (SIS Act).

Sladen Snippet - ATO releases draft legislative instrument to deal with in-house asset issues for SMSFs offering rent deferrals to related party tenants

Sladen Snippet - ATO releases draft legislative instrument to deal with in-house asset issues for SMSFs offering rent deferrals to related party tenants

The Australian Taxation Office (ATO) has released a welcome draft legislative instrument, Self Managed Superannuation Funds (COVID-19 Rental income deferrals - In-house Asset Exclusion) Determination 2020 (SPR 2020/D2), that will exclude COVID-19 related rental deferrals from being ‘loans’ under the in-house asset rules.

Sladen Snippet - VCAT rules land being prepared for primary production and denies exemption from land tax

Sladen Snippet - VCAT rules land being prepared for primary production and denies exemption from land tax

Most Victorian farmers who are using Victorian land solely or primarily for primary production purposes are aware of the primary production land tax exemptions under section 65, 66 or 67 (Primary Production Land Exemptions) of the Land Tax Act 2005 (the Act).

Sladen Snippet - ATO withdraws practical compliance guideline on payments for use and exploitation of a professional sportsperson’s “public fame” or “image”

Sladen Snippet - ATO withdraws practical compliance guideline on payments for use and exploitation of a professional sportsperson’s “public fame” or “image”

In 2017, the Australian Taxation Office (ATO) released Draft Practical Compliance Guideline PCG 2017/D11 (the PCG) to provide safe harbour measures for professional sportsperson’s who receive lump sum payments in exchange for their professional services and the use and exploitation of their “public fame” or “image”.

Can you make your employees download the COVIDSafe App?

Can you make your employees download the COVIDSafe App?

Many businesses around the country are eagerly anticipating being able to trade again. For some employers, this has included encouraging employees and customers to download the Federal Government’s COVIDSafe App. Questions have risen around whether employers can require their employees to download the COVIDSafe App before returning to work.

Sladen snippet – extension of the work test and bring forward rule – draft legislation released

Sladen snippet – extension of the work test and bring forward rule – draft legislation released

As announced in 2019/20 budget, the Government has released draft legislation and draft regulations to extend the work test start date to age 67 and to allow the use of bring forward contributions for persons aged 65 and 66.

Sladen snippet - High Court refuses special leave on the Optical Superstore payroll tax case

Sladen snippet - High Court refuses special leave on the Optical Superstore payroll tax case

The clampdown by revenue authorities on investigating medical, dental, optometry and other allied clinics is anticipated to continue, with the High Court refusing to grant special leave to appeal the Victorian Court of Appeal’s decision in the Optical Superstore case.