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Capital gains, discretionary trusts, and foreign residents – first blood to the ATO

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Capital gains, discretionary trusts, and foreign residents – first blood to the ATO

The Australian Taxation Office (ATO) position for several years has been a foreign beneficiary distributed a capital gain made by an Australian discretionary trust on an asset that is not taxable Australian property is assessed on the capital gain even though that would not occur if the foreign resident made the gain directly, or through a fixed trust. Some commentators disagree with that view, the Federal Court in a recent case agreed with the ATO position in what may be the first skirmish of a battle through the courts on this issue.

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COVID-19 disruptions on your workforce and how it can shift your payroll tax liabilities to another jurisdiction

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COVID-19 disruptions on your workforce and how it can shift your payroll tax liabilities to another jurisdiction

The COVID-19 crisis has introduced unprecedented disruptions to the workforce, pushing employees and employers to work in remote capacities and in expedited ways across many industries.

This will mean that employers will soon have to turn their minds to considerations never contemplated before, such as their base line payroll tax assumptions and whether or not changes in the ways we will be working in the coming months, will shift payroll tax liabilities to a different jurisdiction. We explore these questions further in this article.

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Transfers to Bare Trusts: Court of Appeal Provides Clarity on Duty Exemption

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Transfers to Bare Trusts: Court of Appeal Provides Clarity on Duty Exemption

The Court of Appeal handed down its decision in MD Commercial Pty Ltd v Commissioner of State Revenue [2019] VSCA 295 in late 2019. The decision has provided further clarity on the application of section 35 of the Duties Act 2000 (Vic) which provides an exemption from duty for transfers to bare trusts.

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COVID-19: JobKeeper – further details on Alternative Decline in turnover test

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COVID-19: JobKeeper – further details on Alternative Decline in turnover test

As part of the continued economic response to COVID-19, the Deputy Commissioner of the Australian Taxation Office (ATO) has recently made a determination pursuant to subsection 20(4) of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020, outlining further tests under which an entity may satisfy the decline in turnover required in order to receive JobKeeper payments. This article discusses the various new “alternative” tests that an entity may utilise under the determination.

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COVID-19: “JobKeeper is Go” - legislation passed

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COVID-19: “JobKeeper is Go” - legislation passed

On 9 April 2020, the JobKeeper legislation received Royal Assent and the Treasurer issued the Rules that govern eligibility for JobKeeper until the schemes planned end on 27 September 2020. This article sets out the operation of the JobKeeper scheme.

Employment Law Benefits of JobKeeper

Employment Law Benefits of JobKeeper

Federal Parliament has recently legislated its $130 billion JobKeeper scheme. This will result in approximately 6 million workers receiving a fortnightly payment of $1,500 through their employer. These employees must have been employed at 1 March 2020 and remain employed during this time.

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COVID-19: The ATO announces further superannuation measures

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COVID-19: The ATO announces further superannuation measures

Further to the COVID-19 superannuation measures that we discussed here, the Australian Taxation Office (ATO), on 3 April 2020, announced further details around, and new measures concerning, COVID-19 and superannuation.

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COVID-19 – State and Territory Payroll Tax Stimulus Measures

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COVID-19 – State and Territory Payroll Tax Stimulus Measures

State and territory revenue offices continue to make announcements in response to the COVID-19 crisis. Relevant to many businesses will be the numerous payroll tax changes. The changes include waivers and deferrals for eligible businesses as well as the bringing forward of cuts to tax-free thresholds in some jurisdictions.

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COVID-19: further detail on JobKeeper payments

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COVID-19: further detail on JobKeeper payments

Further to my article on the COVID-19 JobKeeper measure, and pending the release of legislation, on 5 April 2020 Treasury further updated and expanded its JobKeeper fact sheets and included a ‘frequently asked questions’ (FAQ) document.

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Sladen Snippet: COVID-19 – changes to foreign investment review regime announced

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Sladen Snippet: COVID-19 – changes to foreign investment review regime announced

On 29 March 2020 the Federal Government announced changes to the foreign investment review regime as Australia continues to deal with the economic implications of COVID-19.

Once the legislation is passed, effective from 29 March 2020, all proposed foreign investment into Australia subject to the Foreign Acquisitions and Takeovers Act 1975 will require approval, regardless of the value of the investment or nature of the foreign investor. This is to be achieved by reducing to $0 the monetary screening thresholds for all foreign investment under the Act.