As a result of recent changes to the work test, a technical deficiency was identified, such that, persons who are not common law employees, like directors and politicians, could no longer make personal deductible superannuation contributions.

During the stages of administration of a deceased estate, a beneficiary may become presently entitled to the income. It is important to recognise this to determine who is responsible for the payment of income tax on that income.

The High Court has confirmed that, in certain circumstances, the presumption of advancement can apply to contributions to the purchase price of property or the transfer of assets.

When a company becomes presently entitled to trust income, it is imperative that the rules in Division 7A of the Income Tax Assessment Act 1936 are front and square in the minds of the trustees and their advisors.

Trusts are generally known to have a flexibility that can achieve favourable tax outcomes, whether used as a vehicle for operating a business or as the entity to hold investments.

This time last year, we published an article querying whether the Federal Court decision in Guardian AIT Pty Ltd ATF Australian Investment Trust v FCT [2021] FCA 1619 (First Instance Decision) would ignite an administrative and judicial quest for clarity on the interpretation of section 100A of the Income Tax Assessment Act 1936 (ITAA 1936).

On 23 November 2022, the Australian Tax Office (ATO) released Taxation Ruling TR 2022/3, finalising its views on personal services income (PSI) and personal services businesses (PSB).

The High Court in Bosanac v Commissioner of Taxation [2022] HCA 34 culminated a protracted debate on whether to apply the presumption of resulting trust or presumption of advancement in the context of a matrimonial home.

Sladen Legal has been recognised as a Third Tier Leading Tax Law Firm – Victoria, 2022 in the recently released Doyles Guide Victoria, 2022. Doyles Guide is a comprehensive and independent directory which showcases Australia’s best firms and lawyers.

Discretionary trusts are common structures for family businesses. How do we effectively transition these structures to the next generation?

On 19 September 2022, Justice Thawley of the Federal Court handed down his decision in BBlood Enterprises Pty Ltd v FCT [2022] FCA 1112 (BBlood), the most recent decision on section 100A of the Income Tax Assessment Act 1936. The Australian Taxation Office (ATO) was successful in arguing that section 100A applied.

The recent Federal Court decision of Minerva Financial Group Pty Ltd v Commissioner of Taxation [2022] FCA 1092 (Minerva) signifies that the Federal Commissioner of Taxation (Commissioner) can successfully scrutinise a trustee’s discretion under the general anti-avoidance provisions (Part IVA).

In a joint media statement on 22 August 2022, The Hon Stephen Jones MP, Assistant Treasurer, Minister for Financial Services and The Hon Dr Andrew Leigh MP, Assistant Minister for Competition, Charities and Treasury confirmed that the Government is to commence consultation on a framework for the regulation of crypto assets.

In the absence of a comprehensive definition of ‘foreign currency’ in the Australian tax legislation the ATO and Australian courts have interpreted ‘foreign currency’ to be currency issued or recognised by an overseas sovereign state.

The structure of a self managed superannuation fund (SMSF) is often based on a family unit. A very common SMSF structure is, for example, two spouses as the members and trustees/directors of the corporate trustee.

We wrote about Draft Taxation Determination TD 2022/D1 (Draft TD) on Division 7A and unpaid present entitlements (UPEs) here. On 12 July 2022, the Australian Taxation Office (ATO) finalised the Draft TD as Taxation Determination TD 2022/11 (Final TD).

A quick reminder of the new superannuation measures which are effective as of 1 July 2022:

Draft Taxation Determination TD 2022/D1 sets out the Australian Taxation Office’s (ATO) views on when an unpaid present entitlement (UPE) with a corporate beneficiary is a loan for the purposes of Division 7A of the Income Tax Assessment Act 1936. We wrote about TD 2022/D1 here.

The State Revenue and Fines Legislation Amendments (Miscellaneous) Act 2022 (NSW) (Act) received Royal Assent on 19 May 2022.