Vacant Residential Land Tax Exemptions and Significant Amendments to Holiday Home Exemption – Do not Buy your New Holiday House in a Family Trust
On the 3rd December 2024, the State Taxation Further Amendment Act 2024 (‘Amending Act’) introduced significant changes to several taxes, foremost of which include the exemptions in the vacant residential land tax (‘VRLT’) (which take effect 1 January 2025) with the addition of companies and [...]
Vacant Residential Land Tax Expansion and Key Changes for Property Owners in Victoria Starting January 2025
Owners of vacant properties outside of inner/middle Melbourne ought to know of an expansion to the Vacant Residential Land Tax (“VRLT”) starting from 1 January 2025. Starting next year, properties which are left unoccupied for more than 6 months for the preceding year in which [...]
Contract Nomination Exercise – Unpacking the Double Duty Trap – Inherent Risks in Land Developments and Additional Consideration for Property Transactions in Victoria
A common issue our taxation team encounters in relation to a property transaction is the imposition of double stamp duty on purchasers. This occurs as a result of a second sale of land to a subsequent purchaser, often referred to as the nominee. As a [...]
Uber’s Legal Lift: Tax Assessments Take a Backseat – Uber Successful in Challenging SRO’s Payroll Tax Assessment of $81m
On Friday, 6 September 2024, The Supreme Court of NSW ruled in favour of Uber in Uber Australia Pty Ltd v Chief Commissioner of State Revenue [2024] NSWSC 1124. Chief Justice Hammerschlag ruled that Uber’s objection to six payroll tax assessments amounting to $81,515,923 from [...]
From unit trust to company – a snapshot of CGT rollover relief provisions
Where a business operates through a unit trust, there are a number of reasons why transitioning to a corporate structure may be contemplated, such as alignment with long-term business development strategies, addressing working capital needs or obtaining taxation benefits. A ‘trust to company’ restructure may also [...]
Commercial and Industrial Property Tax Update
Earlier in March 2024, the Victorian Government introduced the Commercial and Industrial Property Tax Reform Bill 2024 (‘Bill’). The Bill reformed the Victoria’s land transfer duty regime in respect of commercial and industrial properties, with stamp duty largely replaced by the new Commercial and Industrial [...]
Vesting Interests: Stamping Out Capital Confusion – CGT and Victorian Stamp Duty Consequences of a Trust Vesting
In our collective experience, our Taxation Team has observed that there have been innumerable family trusts that have been established in the 70s and 80s prior to the introduction of Capital Gains Tax and with short vesting dates of 40 or 50 years. This means [...]
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 [...]