Changes to the Pacific Australia Labour Mobility Scheme
Geelong Turf - AAT upholds ATO’s 100% super guarantee penalty
In the recent decision of Geelong Turf Company Pty Ltd and Commissioner of Taxation [2023] AATA 1718, the Administrative Appeals Tribunal (AAT) upheld super guarantee charge (SGC) assessments issued by the Commissioner of Taxation (Commissioner) and refused to remit the 100% SGC Part 7 penalties.
Protecting Worker Entitlements – What Do the Changes Mean for Your Business?
The second tranche of workplace relations reforms have now received Royal Assent, bringing into force the Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023 (Cth) (Entitlements Act) on 1 July 2023. It is important that employers are aware of the changes and how these changes will impact the workplace.
Sladen snippet – LRBA and Div 7A interest rates to significantly increase in 2023/24
The recent interest rate rises will result in significant increases in the LRBA safe harbour interest rates, and the Division 7A interest rate, for the 2023/24 year. The interest rates will be:
LRBA real estate safe harbour interest rate – 8.85% (was 5.35%)
LRBA listed share safe harbour interest rate – 10.85% (was 7.35%)
Division 7A interest rate – 8.27% (was 4.77%)
July 2023 Sladen Legal Promotions
Sladen Snippet - Treasury releases proposed NALE changes
Treasury has release proposed legislative changes to the non-arm’s length expences (NALE) rules. While they are not as bad as the initial proposal to take NALE at a rate of 225%, they are still not ideal.
Sladen Snippet – ATO takes aim at SMSFs and property development (again)
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.
BBlood v FCT: section 100A, more guidance on tax avoidance purpose
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.
“Sneaky” change to Windfall Gains Tax valuation objections
Division 7A: The ATO Are Digging Deeper
NSW foreign surcharges – international tax treaties update – more countries excluded from the regime
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.
Sladen snippet – JMC – right to delegate means no super guarantee
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.
Victorian State Budget 2023/24 – The good, the bad and the ugly
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
Managing Invalid Distributions
Sladen Snippet – Williams Part 2 - another SMSF trustee bites the dust
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.
Sladen Snippet – Williams Part 1 - another BDBN bites the dust
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).
Sladen snippet – employees to be given right to enforce super contributions
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)
Sladen Snippet - Super to be paid on an employee’s payday
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.
