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Sladen Snippet – public trading trust rules here to stay? - changes lapse in Parliament.

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Sladen Snippet – public trading trust rules here to stay? - changes lapse in Parliament.

We have previously noted in our Snippets in September and December 2015 that, under the legislation to introduce the new managed investment trust rules, it was proposed that self managed superannuation fund(s) (SMSFs) (and other exempt entities that are entitled to a refund of excess imputation credits) be excluded from the 20% tracing rule for the public trading trust rules. This would have resulted, from 1 July 2016, in the public trading trust rules not applying to unit trusts merely because a SMSF held more than 20% of the units in the trust.

Win/Lose - Tribunal axed but ABCC bill defeated

Win/Lose - Tribunal axed but ABCC bill defeated

The Federal Government has succeeded in abolishing the Road Safety Remuneration Tribunal (RSRT) after the Senate voted last night to approve the legislation that repeals the Road Safety Remuneration Act 2012. The legislation passed the Senate without the support of Labor or the Greens – with all but one cross-bencher siding with the Federal Government.

Update on Contractor Driver Minimum Rates Order – Stay Overturned

Update on Contractor Driver Minimum Rates Order – Stay Overturned

Further to our Snippet on Monday, the Federal Court has now lifted the stay on the Contractor Driver Minimum Payments Road Safety Remuneration Order 2016 (Order).

The Full Federal Court dismissed NatRoad’s application for a stay pending the hearing of its substantive application as to whether the Road Safety Remuneration Tribunal made legal errors in rejecting industry calls to defer the commencement date of the Order. The substantive application is set down to be heard on 9 and 10 May 2016.

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Sladen Snippet - Strategies for Estate Planning and Asset Protection Following New High Court Decision

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Sladen Snippet - Strategies for Estate Planning and Asset Protection Following New High Court Decision

n Fischer & Ors v Nemeske Pty Ltd & Ors ([2016] HCA 11; [2014] NSWSC 203), the High Court yesterday upheld the decisions of the Supreme Court of New South Wales and Court of Appeal.

The High Court’s decision confirmed that the resolution of a trustee of a discretionary trust to distribute an amount equal to the value of shares owned by the trustee to a beneficiary (Nemes) created a debt payable upon demand enforceable against the trustee by Nemes’ executor upon Nemes’ death.

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Sladen Snippet - ATO gives further guidance on how related party LRBA loans can be rectified by 30 June 2016

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Sladen Snippet - ATO gives further guidance on how related party LRBA loans can be rectified by 30 June 2016

Practical Compliance Guidelines PCG 2016/5 Income tax - arm's length terms for Limited Recourse Borrowing Arrangements established by self managed superannuation funds (Guideline) sets out further guidance as to how existing non-commercial limited recourse borrowing arrangement (LRBA) loans from related parties to self managed superannuation funds (SMSFs) can be put on commercial terms by 30 June 2016. If such loans are on commercial terms by that date and with effect for the 2015/16 year then the ATO will accept that such loans are on commercial terms and that they will not trigger the application of the non-arm’s length income (NALI) rules. The ATO has said that it will not select an SMSF for a review purely on the basis that it had a loan on a non-commercial basis for previous years.

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Sladen Snippet – ATO releases safe harbour for related party LRBA loans

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Sladen Snippet – ATO releases safe harbour for related party LRBA loans

The ATO has released Practical Compliance Guidelines PCG 2016/5 Income tax - arm's length terms for Limited Recourse Borrowing Arrangements established by self managed superannuation funds (Guideline) which sets out 2 safe harbours for limited recourse borrowing arrangement (LRBA) loans from related parties to self managed superannuation funds (SMSFs). If such loans comply with the terms of the safe harbours then the ATO will accept that such loans are on commercial terms and that they will not trigger the application of the non-arm’s length income (NALI) rules.

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Sladen Snippet – Primary Production Land Tax exemption for property developers

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Sladen Snippet – Primary Production Land Tax exemption for property developers

In a recent decision the New South Wales Supreme Court held that although the subject land had been purchased for future residential development, during the years relevant to the disputed Land Tax assessments, the dominant use of the land related to cattle-grazing operations under an agistment agreement. The taxpayer property developer was therefore eligible to apply the exemption applicable to land used in primary production in s 10AA(2) of the Land Tax Management Act 1956 (NSW).