Sladen Snippet - Transfers of cash and property from private companies in family law settlements
On 30 July 2014 the Australian Taxation Office issued Taxation Ruling TR 2014/5 (previously released in draft form as TR 2013/D6) to address the tax effect of private companies paying money or transferring property to shareholders or their associates, in order to satisfy Family Court orders made pursuant to section 79 of the Family Law Act 1975.
Sladen Snippet - Loan from an SMSF to an unrelated unit trust, not an in-house asset
The Australian Taxation Office (ATO) has confirmed in ATOID 2014/23 that a loan from a self managed superannuation fund (SMSF) to a unit trust, where the SMSF and its related entities held less than 10% of the units in the unit trust, and did not otherwise ‘control’ the unit trust, will not be treated as an in-house asset.
Sladen Snippet - ATO confirms adult children can be super dependants
The Australian Taxation Office has confirmed in ATOID 2014/22 that an adult child can be a death benefits dependant under the superannuation laws. In the particular facts of the ATOID, the adult child had given up work to care for a terminally ill parent and received no financial support from anyone, other than the parent, during that time. The child was found to be both financially dependent on, and an interdependent of, the child’s mother. Consequently, any death benefits paid to the adult child would be tax free.
Sladen Snippet - Supreme Court grants an injunction against a sham registration on the Personal Property Securities Register
There is no requirement to file the underlying agreement that gives rise to a security interest on the Personal Property Securities Register (Register). This has the potential to give rise to fake or sham registrations because the Register cannot determine if a registration is in fact a genuine security interest. This creates a situation where the Register can be compromised by the lodgement of sham registrations.
Sladen Snippet – Changes to the PPSA definition of motor vehicle
Sladen Snippet – .MELBOURNE, .MONASH, .AFL? – Internet expansion with new top level domain
It’s happening. The internet is changing, growing, expanding. The .com domain will soon be competing with specific business-owned domains for greater visibility and control on the internet. What does this all mean?
It means there will be many more domain names available for registration. Business will have the ability to carve their own personal internet space by obtaining their own top level domain. And us internet users will see, over time, many more top level domains emerging so web addresses will change too.
Sladen Snippet - Changes to the Primary Production Exemption for Land Tax
The Victorian State Revenue Office has recently released General Information Bulletin GEN 2/14 in relation to recent duty and land tax changes that received Royal Assent on 17 June 2014. Of particular note is the change to the area defined as “Greater Melbourne” for the purposes of the Primary Land Tax Exemption.
Sladen Snippet – Extending unfair contract term protections to small businesses
The Australian Government has released a consultation paper which seeks to protect small businesses from the burden of unfair contract terms in standard form contracts.
Unfair contract terms go beyond what is necessary to protect the legitimate interests of the party seeking to include the terms in the contract (for example a large corporate business). These terms create a significant imbalance in the rights and obligations of the parties to the contract. Similar provisions currently exist to protect consumers in dealing with businesses.
Sladen Snippet - Employee Share Schemes and Startups
Sladen Snippet - SuperStream Start Date Delayed
Sladen Snippet - "Entrepreneurs’ Infrastructure Programme"
There has been a lot published in the traditional media about the 2014-15 Federal Budget’s taxation and expenditure measures including the new temporary deficit levy, the increase to the FBT rate, the company tax rate reduction, the paid parental leave levy, indexation of fuel excise, the choice to withdraw excess contributions to superannuation, increases to the superannuation guarantee charge and the medicare co-payments.
Sladen Snippet - Super announcements in the 2014 Budget
Many people in the super industry approach each budget with some trepidation given the number of changes to the superannuation system over the years. This year, however, the industry received a pleasant surprise with only two changes, one being the ability to withdraw excess non-concessional contributions and the second being changes to the increases to the super guarantee rate.
Sladen Snippet: Developer infrastructure contributions reforms
The Victorian Government has announced that effective from 1 July 2015, it will change the way it collects contributions towards the provision of infrastructure from developers.
At present, developers of land may be required to pay infrastructure levies at different rates and using different methods of calculation depending on whether the land is in a development contributions plan (DCP), the use of the land, the area of land being developed, and other criteria determined by the municipality in which the land is located. It is widely believed that the existing system is onerous, expensive, lacks flexibility and accountability and delays the development approval process.
Sladen Snippet: Possible changes in the test for the declaration or payment of dividends
Sladen Snippet - ATO has updated its Practice Statement on Testamentary trusts
The Australian Taxation Office (ATO) updated its Practice Statement PS LA 2003/12 on 10 April 2014. The Practice Statement confirms that the Commissioner will not depart from the long-standing administrative practice of treating the trustee of a testamentary trust in the same way as a legal personal representative (LPR).
Sladen Snippet - ATO determines a nil interest LRBA loan triggers non-arm’s length income
The Australian Taxation Office (ATO) has released a private binding ruling extract in which it found that a nil interest limited recourse borrowing arrangement (LRBA) loan triggered the non-arm’s length income rules.
Sladen Snippet - Review of the PPSA
Just as everyone has gotten their heads around the Personal Property Securities Act 2009 (Act) and implemented the necessary policies and procedures, the Act is now being reviewed by the Australian Government to assess its operation and effect on businesses with particular attention being paid to how the Act has impacted small businesses.
Sladen Snippet - Unauthorised use of one photo cost $24,000
Ever copy a photograph from the internet without permission?
An American photographer has pursued a travel agent operating in Melbourne for the unauthorised use of a picture of Hawaii. Mr Tylor takes photographs and sells or licenses them through photo stock libraries (e.g. Getty Images). Ms Sevin published one of Mr Tylor’s photographs on her website to advertise flights to Hawaii. She is now liable to pay Mr Tylor $24,000 for copyright infringement and costs.
Sladen Snippet – Fed Court overturns special circumstances finding of AAT
The Federal Court has overturned one of the few AAT cases that found special circumstances exist for an excess contribution assessment. In FCT v Dowling there were two relevant contributions. First, a non-concessional contribution of $156,142 made by the taxpayer’s husband in the 2009 year for the purposes of increasing his age pension entitlement. This contribution was made as a result of free advice from Centrelink and a public offer super fund. The contribution triggered the bring forward rule for the taxpayer. Second, a $200,000 non-concessional contribution in the 2011 year under a recontribution strategy which caused the taxpayer to exceed her non-concessional cap under the bring forward rule.