Matching the Settlement Receipts to the CGT Liability: Returning CGT and Remission of Interest Applications in Respect of Delayed Property Developments
In the case of delayed property settlements that are on capital account and subject to Capital Gains Tax, these taxpayers should be aware of taxation consequences for delayed settlements as well as how these issues may be circumvented. The payment of CGT tax may arise well [...]
Employees versus Contractors: ATO Indicators and Audit Resource Allocation
The ATO has also released their Practical Compliance Guideline 2023/2 which sets out the approach of the Commissioner to businesses that classify their workers as either employees or independent contractors. As such, the guidelines sets out how the Commissioner allocates audit compliance resources based on [...]
Importance of the original employment contract in respect of determining who is an employee for PAYG
Late last year, the ATO released their new Taxation Ruling 2023/4 which sets out the ATO’s view on whether a worker is an independent contractor or employee. The purpose of this ruling is to assist businesses – who employ independent contractors and employees – in [...]
Balancing the Books: The Importance of Proper “Paper” Trails for Calculation, Claiming and Audit Purposes
Taxpayers should be reminded of keeping up to date and accurate records of their assets, especially when those assets are disposed of. Not only is it an offence to fail to keep accurate records, but keeping these records will assist in calculating your income tax [...]
Owies v JJE Nominees: The trustees consideration of beneficiaries in income distributions and the written reasons conundrum – Further when is a trustee not acting in the best interests of the beneficiaries and can be replaced by the Court
The landmark Victorian Supreme Court appeal case of Owies v JJE Nominees Pty Ltd (2022) VSCA 142 (Owies) has highlighted issues relating to the exercise of the power of trustees in discretionary trusts to allocate trust income with absolute discretion and the duty of the [...]
The Three Silos for Tax-Efficient Business Restructuring
In the context of small businesses, a restructure can afford significant advantages ranging from decreased operational costs, increased efficiency and communication as well as simplifying management. Often these restructures involve the disposal of major assets which may incur CGT consequences for the business resulting in [...]
Prescriptions for Payroll Tax: Navigating Payroll Tax Liability in Medical Practice Agreements
Medical practice owners should be aware that agreements entered into with medical practitioners for the use of shared administrative and medical support services as well as the use of rooms may attract payroll tax liability. On 14 March 2023, the NSW Supreme Court of Appeal [...]
Troubling Waters; Navigating the Australian Superannuation Guarantee Landscape: Recent Legal Issues for Employers (and Workers)
Our Taxation team at Pointon Partners are often asked to advise on whether employers are obliged to pay superannuation for the services of a contractor for the purposes of the Superannuation Guarantee Act when a dispute has arisen. This has been highlighted by recent ATO [...]
From Stamp Duty to Tax: Major reform to stamp duty following the 2023-24 Victorian State Budget
On Tuesday 23 May 2023 the Victorian Treasurer, Tim Pallas, delivered the 2023-24 State Budget announcing a landmark reform to abolish stamp duty for commercial and industrial properties and introduce a new annual property tax. These changes are expected to take effect from 1 July [...]
ATO Decision Impact of High Court Carter decision – Disclaiming an interest in a discretionary trust must be done before 30 June
The High Court case of Commissioner of Taxation v Carter [2022] HCA 10 confirmed that the right to trust income is decided by the Trustee on or before 30 June of any year and any retrospective disclaiming is of no effect in respect of income taxation [...]