The tax focus of last night’s Budget speech and the associated media coverage was on personal income tax cuts and measures aimed at large companies and the black economy.

As hoped, the Federal Government’s 2018 Budget did not contain too many changes in relation to superannuation and what changes were announced were generally positive.

The Commissioner of Taxation (Commissioner) has power pursuant to section 255-15(1) of Schedule 1 of the Taxation Administration Act 1953 to permit a taxpayer to pay its tax-related liability by instalments in accordance with a payment arrangement. The recent Federal Court decision of Stojic v Deputy Commissioner of Taxation [2018] FCA 483 (Stojic) dismissed an application by the sole director and shareholder of a company to review a decision by the Commissioner to decline to exercise that power illustrates two major points.

As we have previously reported, on 29 March 2018 the Treasury Laws Amendment (2018 Measures No. 1) Act amending the Taxation Administration Act 1953 (the Act) received Royal Assent.

The Government has announced a proposal to increase the maximum number of members that a self managed superannuation fund (SMSF) can have from 4 to 6.  

Sladen Legal Principal, Daniel Smedley, has again been named as one of Australia’s best lawyers in the 11th edition of the Best Lawyers In Australia, for his work in Tax Law. The accolade was announced in the Australian Financial Review on 12 April 2018.

Naming your business or products can be a tricky and time consuming process. You want a name that represents who you are, and what you do but is also catchy and unique. Importantly, that name should also be one which can be protected by registering a trade mark. You can read why trade mark registration is so important here

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: