The ATO’s attacks on SMSFs conducting property development continues! The ATO has released Taxpayer Alert TA 2023/2 (the Alert) confirming that the ATO will review arrangements where related entities of a SMSF are conducting a property development (or including where property development is undertaken on SMSF owned assets) and where a special purpose vehicle (SPV) is used. The SPV being a company or trust which will be a related party to the SMSF through which generally a member of the SMSF may provide property development services to the SMSF for a commercial arm’s length fee and acquire and manage building materials used for the development.

The Full Federal Court in the BBlood appeal found for the ATO on section 100A and the taxpayer dividend stripping (albeit on a technical, non-substantive basis).

The 100A analysis was limited to ‘tax avoidance purpose’ with the Full Court holding that, in certain circumstances, the purpose of advisors can be relevant.

The 2023-2024 Victorian State Budget was delivered by the Victorian Government on 23 May 2023.

It is well known that Division 7A of the Income Tax Assessment Act 1936 can apply to distributions or benefits provided by a company to a shareholder or associate, or a company that has an unpaid present entitlement from a trust.

In our previous article, we discuss Revenue NSW’s announcement that it has determined that NSW surcharge purchaser duty and surcharge land tax are inconsistent with international tax treaties entered into by the Australian Federal Government and certain countries (Treaty Countries).

On 29 May 2023, Revenue NSW has updated its list of Treaty Countries to now include India, Japan, Norway and Switzerland.

The Full Federal Court, in the decision of JMC Pty Ltd v Commissioner of Taxation [2023] FCAFC 76, has effectively found that a right to delegate (unless such right is a sham) means a person will be a contractor (and not an employee) and won’t be engaged principally for their labour.

The Victorian State Budget for the 2023-2024 year (Budget) brings with it a range of state taxation measures aimed at reigning in the Victorian Government’s surging debt, currently projected at $135.4 billion for the 2023-2024 tax year and set to grow to an “eye-watering” $171.4 billion in the 2026-2027

Discovering that distributions have been made to an invalid beneficiary may only be the beginning of your problems.

As seen in Part 1 of our article on the case of Williams v Williams, this is the latest of a long line of cases that have found that a binding death benefit nomination (BDBN) was not binding. However, the case also is an important decision in relation to when the Court will remove an SMSF trustee.

In the case of Williams v Williams, the Supreme Court of Queensland has determined that a binding death benefit nomination (BDBN) was not binding on the basis that it was not provided to the trustees of the applicable self managed superannuation fund (SMSF).

One of the anomalies of the super guarantee system is the inability of employees to force employers to make contributions payable under the system. That could soon change, with proposed changes to the Fair Work Act 2009 which would allow employees to force employers to make contributions to avoid the liability to pay the super contribution charge under the Superannuation Guarantee Charge Act 1992 (SG Act)

The Government has announced that, from 1 July 2026, employers will obligated to make super contributions at the same time they pay their employee’s their salary and wages (eg weekly, fortnightly or monthly). Currently, super must be made within 28 days of the end of each quarter.

It has become common practice to make family trust and interposed entity elections to deal with carry forward losses and franked distributions without considering the impact on the future of the group.

As a result of recent changes to the work test, a technical deficiency was identified, such that, persons who are not common law employees, like directors and politicians, could no longer make personal deductible superannuation contributions.

Sladen Legal is delighted to have been identified by clients and peers for expertise and abilities in the 2023 listing of recommended Victorian Property & Real Estate Law Firms - Victoria, 2023

The Full Federal Court has confirmed in Jamsek v ZG Operations Australia Pty Ltd (No 3) [2023] FCAFC 48 that a truck driver partnership was not eligible for super guarantee contributions.  The decision is an important decision in relation the application to super guarantee in relation to contractors and, in particular, partnerships and other entities.

The New South Wales Court of Appeal (NSWCA) in Thomas and Naaz Pty Ltd v Chief Commissioner of State Revenue [2023] NSWCA 40 has dismissed a medical practice’s appeal and upheld the New South Wales Civil and Administrative Tribunal Appeal Panel’s (Appeal Panel) decision that payments from a medical practice to doctors, who worked at the practice, are subject to payroll tax.

This year seven of Sladen Legal’s lawyers have been recognised in the 2024 edition of The Best Lawyers® in Australia. Daniel Smedley, Bernie O’Sullivan, Phil Broderick, Rob Jeremiah, Neil Brydges, Victor Di Felice, and Edward Skilton. The list of exceptional legal professionals was announced on 20 April 2023.

During the stages of administration of a deceased estate, a beneficiary may become presently entitled to the income. It is important to recognise this to determine who is responsible for the payment of income tax on that income.