Proposed changes to the monster that is Division 7A

Submissions to TreasurySubmissions have now closed to Treasury concerning their Consultation Paper “Targeted Amendments to Div. 7A Integrity Rules” (October 2018– Consultation Paper).Whilst it is hoped that the submissions to Treasury may finally provide some worthwhile improvements to Div. 7A, the fact that this whole process started in May 2012, and [...]

2018-12-06T17:45:52+00:00December 6th, 2018|Categories: Taxation|Tags: , , |

The Family Farm – When is the transfer of a farm to a relative duty free?

A farm is a significant asset and the value of the associated business is dependent upon how that business is operated by you now, and later, by your children and their children after them. The farm may constitute the majority of your family wealth and you may have difficulty passing on  [...]

2018-11-23T15:23:31+00:00November 23rd, 2018|Categories: Taxation|Tags: , , |

ATO response to High Court decision in Bywater

In a previous article we discussed the High Court of Australia decision in Bywater & Ors v FC of T: see Subsequent to the High Court decision, the ATO withdrew its previous ruling TR 2004/15, and issued a new draft ruling TR 2018/D3, and an exposure draft Practical Compliance [...]

2018-08-31T16:15:50+00:00August 24th, 2018|Categories: Taxation|Tags: , |

Federal Court decision highlights the urgent need for change to income tax residency rules for individuals

In the recent decision of the Federal Court in Harding v Commissioner of Taxation [2018] FCA 837, it was found that Mr Harding, an Australian citizen who lived and worked abroad for various periods, but focusing on March 2009 to February 2015, was a resident of Australia under the expanded [...]

2018-09-27T16:28:58+00:00August 17th, 2018|Categories: Taxation|Tags: , , |

Transfers of land in a partnership in Victoria – Court confirms non dutiable – Refund possibilities if act promptly

The rights of a partner in a partnership have been highlighted  again by the Court of Appeal of Victoria in a judgement handed down in December 2017 (Commissioner of State Revenue v Danvest Pty Ltd BC 201711304). The case involved one of the partners buying out two other partners. The partnership [...]

2018-08-23T15:28:38+00:00May 29th, 2018|Categories: Taxation|Tags: |

Vacant Residential Land Tax – Do you need to notify the State Revenue Office?

The lack of housing supply in inner and middle Melbourne has become a major issue for residents and the State Government. In response, the Victorian State Government has sought to free up further housing by introducing a new Vacant Residential Land Tax on residential properties that remain vacant for more than [...]

2018-08-24T17:26:09+00:00October 25th, 2017|Categories: Taxation|Tags: , , |

Small business corporate tax rate: Exposure draft legislation released regarding passive income threshold

In our recent article entitled “Corporate Tax Cuts. What do they mean for you?”, we referred to the relevant minister (Kelly O’Dwyer) questioning the ATO provisional interpretation of when a company would be “carrying on business” for the purpose of the reduction in the small business corporate tax rate. The [...]

2018-08-28T15:29:02+00:00October 9th, 2017|Categories: Taxation|Tags: , |

Taxpayers and advisers take note: it will soon be time to pay-out UPEs or convert them to Division 7A complying loans to avoid paying deemed dividends

Background In Practice Statement 2010/4, the Commissioner set out three safe harbour investment options that taxpayers could avail themselves of to ensure an Unpaid Present Entitlement (UPE) of a company from a trust, did not attract the application of Division 7A. These options involved having the UPE funds invested under [...]

2018-08-28T15:44:48+00:00September 25th, 2017|Categories: Taxation|Tags: , , |