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 [...]
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 https://pointonpartners.com.au/australian-tax-residence-for-companies-revisited-by-high-court-after-43-years/ 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 [...]
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 [...]
BEPS MLI measure in the Australian Parliament
A Bill to enact OECD BEPS Measure 15 was introduced into the House on 28 March 2018, with the government’s hope that it will pass the Parliament before the end of the financial year on 30 June 2018. If enacted, this will make Australia one [...]
Musings on 2018 Federal Budget
Image rights for sports people and actors It is said that the Government will “improve integrity” in the tax system by ensuring from 1 July 2019, high profile individuals are no longer able to take advantage of lower tax rates by licencing their fame or [...]
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 [...]
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 [...]
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 [...]
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 [...]
Proposed changes to CGT main residence exemption for foreign residents
The Treasurer has recently released exposure draft legislation (Treasury Laws Amendment (Housing Tax Integrity) Bill 2017) in relation to removal of the CGT main residence exemption for foreign residents. The changes are part of the Commonwealth Government’s ‘housing affordability’ reforms announced in the 2017-18 Budget. [...]