Division 6C was introduced in 1985 to tax public unit trusts like companies unless they restricted their activities to essentially passive investment activities (‘eligible investment business’). Stapled structures arose to allow the combination of trading activities, in a company, with associated non-trading assets in a trust to which Division 6C does not apply.

In Ellison v Sandini Pty Ltd [2018] FCAFC 44, the Full Federal Court overturned decision which allowed Mr Sandini (the Taxpayer) to benefit from Capital Gains Tax (CGT) marriage breakdown rollover for the transfer of shares to an entity controlled by his former spouse, pursuant to a Family Court Order (FCO).

As widely reported in the media, the debate on the Tax Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017 resumes on 8 May 2018 when the Parliament reconvenes for the Budget sittings.

As previously reported in February 2018 (see here), the Commonwealth Government introduced into Parliament legislation that would require purchasers of taxable supplies of new residential premises or new subdivisions of potential residential land to pay either 1/11, or 7% if the margin scheme applies, of the purchase price to the Australian Taxation Office (ATO) at settlement.

The recent Federal Court case of Aussiegolfa Pty Ltd v FCT1 is an important decision for considering two aspects of the superannuation laws that are not often considered by the courts: the in-house asset rules and the sole purpose test.

two-tiered company tax rates create compliance and practical issues for trusts that distribute to bucket companies — not just for companies.

Two-tiered company tax rates create compliance and practical issues for trusts that distribute to bucket companies — not just for companies.

The ATO has effectively ruled, from 1 July 2017, that SMSFs can no longer create most types of reserves or have “unexplained increases” in pre-1 July 2017 reserves.

On 12 March 2018 the Medical Treatment Planning and Decisions Act 2016 commenced in Victoria.

Sladen Legal recently held an event at the RACV club titled Property development - topical tax and commercial issues.

Are the eggs you buy really ‘free range’?  From 26 April 2018, you will be able to tell as all egg producers will be required to state on their carton labels the maximum outdoor stocking density if packaging ‘free range’ eggs. 

In a recent Fair Work Commission decision, Deputy President Val Gostencnik found that under Australian law, Uber drivers are independent contractors, and therefore ineligible for unfair dismissal protection.  However, DP Gostencnik commented that due to the increasing “gig economy”:

In a recent speech, James O’Halloran, Duty Commissioner Superannuation at the ATO, set out the ATO’s current areas of focus for the self managed superannuation fund (SMSF) sector. This includes that the ATO:

The Commissioner issued TR 2017/D10 on 13 December 2017 with his “preliminary views” on amending a trust’s vesting date and the income tax consequences of a trust vesting.

As previously reported in November 2017 (see here), the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 introduced to the Parliament in October of that year dropped, without notice or explanation, reference to the proposed change to the CGT main residence exemption as that exemption applies to foreign residents.

On 7 February 2018 the Commonwealth Government introduced into Parliament legislation which if enacted will, subject to a transitional rule (discussed further below), require from 1 July 2018 that purchasers of taxable supplies of new residential premises or new subdivisions of potential residential land pay either 1/11, or 7% if the margin scheme applies, of the purchase price to the Australian Taxation Office (ATO) at settlement (the Legislation). 

The recent decision of Aussiegolfa v FCT is an important decision for considering two aspects of the superannuation laws that are not often considered by the Courts, the in-house asset rules and the sole purpose test. This snippet looks at the former, another snippet looks at the latter.

The recent decision of Aussiegolfa v FCT is an important decision for considering two aspects of the superannuation laws that are not often considered by the Courts, the in-house asset rules and the sole purpose test. This snippet looks at the latter, another snippet looks at the former.

On 8 February 2018, the Government released for public consultation exposure draft legislation to implement the announcement in the 2017 Budget regarding integrity improvements to the small business capital gains tax (CGT) concessions.

Did you know that as of 22 February 2018, your business may be required to notify the Australian Information Commissioner if you experience a data breach?  Is your business ready?  Do have a data breach response plan in place?