Archived News
GST and Requirements for Tax Invoices Division 7A loans: trust entitlements - TR 2009/D8
The GST regulations which previously specified the requirements for documents to be tax invoices has been removed. 
Reportable Employer Superannuation Contributions Definition: Changes Proposed
The Government has proposed to clarify the definition of RESCs.
Minimum Pension Drawdown Amounts — 50% Reduction to Continue
The 50% reduction in the required minimum payment amounts that must be made from account-based, allocated and market-linked pensions will be extended another year. 
Division 7A Benchmark Interest Rate
The Tax Office has announced the Div 7A benchmark interest rate for the income year that commenced 1 July 2010.
Trust’s Unrealised Gains Can Be Treated as Income
In a recent case, the NSW Court of Appeal has confirmed that it was permissible for a trust, in terms of its trust deed and accepted accounting principles, to treat unrealised gains made on share investments as income of the trust.
ATO Sends Warning to SMSFs Regarding Employee Share Schemes
The Tax Office has issued a Taxpayer Alert on arrangements involving employee share schemes.
Reasonable Travel and Meal Allowance Amounts
The Commissioner has determined the amounts considered reasonable for travel and meal allowances for the 2010/11 income year.
Superannuation and Instalment Warrant Rule Changes
The superannuation law has been amended to reduce the risks for super funds investing in instalment warrants.
Cooper Super Review Makes 177 Recommendations
The Government has released the long-anticipated final report of the Super System Review.
Trust Income and Bamford: Tax Office View
The Tax Office has released a statement outlining the Commissioner's view on the High Court's decision on a case dealing with trust income issues.
Div 7A Loans and Trust Entitlements
The Tax Office has released a Taxation Ruling which considers when a private company with an unpaid present entitlement from an associated trust is considered to have made a loan to the trust.
Commissioner's Discretion to Disregard Deemed Dividend Provisions
The Tax Office has released a Draft Taxation Ruling which outlines the requirements to be satisfied before the Commissioner can disregard a deemed unfranked dividend from arising when a private company lends an amount to a shareholder.
Vacant Land not Input Taxed as ‘Residential Premises’
In a recent case, the Full Federal Court has unanimously dismissed a taxpayer's appeal against an assessment of GST in respect of the sale of two separate blocks of vacant land.
SMSFs and Instalment Warrants: Rules to be Tightened
The Government has proposed amendments to the superannuation law to reduce risks for super funds investing in limited recourse borrowing arrangements (eg instalment warrant arrangements).
Superannuation Co-contribution: Proposed Changes
The Government has proposed amendments to modify the operation of the Government superannuation co-contribution scheme.
Henry Tax Recommendations to Watch Out For
There are a number of recommendations made by the Government in response to the Henry Report which, if implemented, will impact many taxpayers.
Various Rates and Thresholds for 2010/11
The Tax Office has released rates and thresholds for car depreciation, luxury car tax and CGT improvements.
GIC and SIC Rates Released
The Tax Office has advised the GIC and SIC rates for the first quarter of the 2010/11 financial year.
Division 7A Applies To ‘Payments by Direction’
A Federal Court decision relating to deemed dividends and directions by a company for its debtor to pay amounts to a shareholder.
Judgment of $81.4 million Stands Against Trustee
A Qld Court of Appeal decision relating to a trustee and its liability to pay tax.
Personal Superannuation Contributions Deduction Denied
An Administrative Appeals Tribunal decision relating to disputed deduction for personal superannuation contributions.
SMSF Trustees with Enduring Power of Attorney
An SMSF Ruling on how a person who holds an enduring power of attorney can be a trustee in place of an SMSF member.
SMSF Trauma Insurance Policies
An SMSF Determination on how SMSF trustees can purchase a trauma insurance policy and still satisfy the sole purpose test.
Super System Review: Preliminary Report on SMSFs
The Super System Review panel has released a report containing many recommendations in relation to SMSFs.
Cents per Kilometre Rates
The Government has released the cents per kilometre rates for calculating motor vehicle expenses for the 2009/10 income year.
Offsetting Business Losses against Other Income
Taxpayers who exceeded the new income threshold can, in limited circumstances, still offset their business losses.
Phoenix Activities - Government Flags Possible Action
The Government has flagged possible action to combat fraudulent phoenix activities.
Dodgy GST Arrangements and Artificial Credits on Tax Office Radar
A Taxpayer Alert warning taxpayers about uncommercial arrangements to obtain reduced input tax credits.
Entrepreneurs’ Tax Offset - Income Test Introduced
Legislative changes to introduce an income test to restrict eligibility to the entrepreneurs’ tax offset.
Investors of Failed Forestry Schemes - Deductions Protected
Legislative changes to protect deductions claimed by investors in failed forestry managed investment schemes.
Superannuation Clearing House - Coming Soon
Legislative changes to establish a superannuation clearing house for employer superannuation contributions.
CGT Small Business Retirement Exemption - Anomaly Corrected
Legislative changes to correct an unintended effect on the operation of the CGT small business retirement exemption.
Replacement Dwelling - CGT Main Residence Exemption Clarified
Legislative changes to ensure a replacement dwelling is treated as the original dwelling.
‘Accrued’ Farm Management Fees Assessable
An Administrative Appeals Tribunal decision relating to the assessability of farm management fees.
Tax Liabilities for Duty-Free Goods Seller
An Administrative Appeals Tribunal decision relating to the sale of cigarettes and consequent tax liabilities.
GST Assessment for Net Amounts
An Administrative Appeals Tribunal decision relating to disputed claimed input tax credits.
Superannuation - What is Meant By ‘Contribution’?
A Taxation Ruling explaining the Commissioner's views on ‘contribution’.
Self-Managed Super Funds and Acquiring Assets from Related Parties
A SMSF Ruling explaining the rules which prohibit an SMSF from acquiring an asset from a related party.
R&D Tax Offset Abuse
The Tax Office has issued a Taxpayer Alert warning taxpayers of investment schemes that abuse the research and development tax offset.
Deductions and Refinancing Home Loans
The Tax Office has issued a Taxpayer Alert describing sham arrangements that are promoted as ‘mortgage management plans’.
Uncommercial Offshore Superannuation Trusts
The Tax Office is scrutinising offshore trust structures masquerading as superannuation funds used by taxpayers to avoid tax on money shifted into Australia.
Superannuation Funds and Illegal Early Release
The Tax Office has implemented steps to improve the self-managed superannuation fund registration process to prevent illegal early release of benefits.
Excess Contributions Tax: Commissioner’s Discretion
The Tax Office has provided guidance on whether the Commissioner will exercise his discretion to disregard excess non-concessional contributions.
Payment from Transition-to-retirement Pensions
The Tax Office has also provided guidance on whether a payment from a transition-to-retirement pension can be taxed as a superannuation lump sum.
No Deduction for Misappropriated Money
The Full Federal Court has held that a taxpayer was not entitled to a deduction for money misappropriated by his agent.
FBT Audit and Compliance Activities
We include a summary of the FBT audit and compliance activities currently being undertaken by the Tax Office.
GST: Decreasing Adjustment Note Threshold Increased
The GST decreasing adjustment note threshold will increase to $75 or less with effect from 1 July 2010.
Goods Taken for Private Use
The Tax Office have released the reasonable amounts that they will accept as the value of goods taken from trading stock for private use for the 2009/10 income year.
Proposed Amendments to the Tax Laws
The Government has introduced a Bill seeking to amend the tax laws, including optional CGT rollover relief for the transfer of assets between ‘fixed’ trusts.
Improvements to GST Administration
The Government has also introduced a Bill proposing improvements to GST administration, including a four-year limitation period to claim input tax credits and recovery of overpaid GST refunds.
GST and Sale of Vacant Land
The Federal Court has held that vacant land does not satisfy the definition of residential premises and, therefore, constitutes a taxable supply.
Capital Losses and Continuity of Trust
The Federal Court has also affirmed a trust was entitled to offset its capital gains with carried forward capital losses even though the membership of the trust had changed.
Deductibility of Disability Superannuation Benefit Premiums
The Government has announced a transitional arrangement will be introduced to allow superannuation funds to deduct total and permanent disability (TPD) insurance premiums.
Trauma Insurance Policies and SMSFs
The Commissioner has released his preliminary views on the implications of SMSFs purchasing trauma insurance policies for their members.
GIC and SIC Rates Released
The Tax Office has released the interest rates for the third quarter of the 2009/10 income year.
This draft Taxation Ruling was released on 16 December 2009 for public comment by 12 February 2010. Its full title is "Income tax: Division 7A loans: trust entitlements".
Proposed Amendments to Tax Laws
The Government has introduced a Bill proposing amendments to tax laws, including changes to the taxation of employee share schemes and the non-commercial losses rules.
Collapsed Managed Investment Schemes and Tax Consequences
The Commissioner has given his preliminary views on the tax consequences for investors with interests in collapsed managed investment schemes.
GST Consequences and Partner Taking Goods For Private Use
The Tax Office has released a determination in which it states the GST consequences of a partner taking goods held by the partnership for private or domestic use.
Small Business Benchmarks
The Tax Office has released a range of new benchmarks to assist small business owners in assessing their business performance.
Superannuation Clearing House
The Government has announced a superannuation clearing house service will be available for small businesses from July 2010.
Collapsed Managed Investment Schemes and Tax Consequences
The Commissioner has given his preliminary views on the tax consequences for investors with interests in collapsed managed investment schemes.
Advance to Partnership not a Loan
The AAT has affirmed that an advance of money to a partnership was a capital investment and not a loan.
Trading Stock and Trade Incentives
A ruling has been issued clarifying the tax treatment for buyers and sellers of trading stock where a trade incentive is provided to a buyer.
SMSF Non-compliance Notice Upheld
An SMSF has been found not to be a complying superannuation fund because it did not satisfy the definition of an Australian superannuation fund.
Proposed Tax Law Amendments
The Government has introduced a Bill seeking to amend various provisions of the income tax legislation.
Contributions Caps and Reserves
The Commissioner has given his preliminary views on the use of contribution reserves within an SMSF and the excess contributions tax.
Mail-out to Super Fund Members
The Tax Office has commenced sending letters to individuals who are at risk of exceeding the superannuation contributions cap.
GIC and SIC Rates Released
Interest rates have been released for the second quarter of the 2009/10 income year.
Donations to Typhoon in Taiwan
Taxpayers may be able to claim a deduction for any donations made to victims of the typhoon that hit Taiwan in August 2009.
Tax Office Compliance Program 2009/10
The Tax Office has released its compliance program for 2009/10.
New Advice Program for SMSFs
Self-managed superannuation funds can seek non-binding advice on the operation of the superannuation laws under a new program introduced by the Tax Office.
SMSFs and Disposal of Shares
The Tax Office has given its view on whether a complying superannuation fund can claim a revenue loss on the disposal of shares.
Victory for Sham Victim
The AAT has held that a taxpayer, who was a victim of a sham, was entitled to deduct interest and bank charges incurred on loans.
Director Liable to Indemnify Commissioner
The NSW Supreme Court has ordered a director of an insolvent company to indemnify the Commissioner for amounts the company recovered from the Commissioner.
Loans and In-house Asset Rules
The AAT has upheld a non-compliance notice issued to an SMSF for breaching the in-house asset rules.
Personal Services Income
The AAT has affirmed that the Personal Services Income provisions applied to attribute company income to a taxpayer who was the sole director, shareholder and employee of the company.
Meaning of Contributions
The Tax Office has issued a Draft Taxation Ruling explaining the Commissioner’s preliminary view of the word ‘contribution’ for superannuation purposes.
Deductibility of Interest on Loan to Settle Trust
The Tax Office has issued a Taxation Determination stating the Commissioner’s views on the deductibility of interest incurred on a loan to settle a trust.
Interest on Loan to Acquire Options
The Tax Office says interest on a loan to acquire options is not deductible.
Investment Commitment Time
The Tax Office says a contract option to delay construction of an asset does not defer the investment commitment time for the one-off tax break.
Assistance for Small Businesses
The Tax Office has introduced two new measures to assist small businesses in managing their tax payment obligations.
PAYG Withholding and Foreign Employment Income
An Instrument has been registered ensuring employers withhold the correct PAYG amounts from their overseas-based employees.
Tax Returns Not Required for New SMSFs
The Tax Office do not require newly registered SMSFs to lodge a tax return in their first year of registration.
Proposed Tax Law Amendments
A Bill has been introduced into Parliament seeking to increase the research and development expenditure cap and to make minor technical corrections to tax legislation.
Tax Law Amendments
An Act has been passed to temporarily reduce the superannuation government co-contribution and to reduce the superannuation concessional contributions cap.
Deemed Dividends
The AAT has held that a taxpayer was liable to the deemed dividends provisions for monies owed to a private company which were deposited into her bank account.
GST and Credit Card Surcharge Fees
The GST treatment of credit card surcharge fees charged by merchants is dependent on the GST characterisation of the underlying supply.
Superannuation Guarantee Charge
A partnership was found to be liable for superannuation guarantee for an independent contractor operating within its business.
Superannuation Guarantee Regulations
Employers are not required to provide superannuation guarantee payments for paid parental leave and ancillary leave payments.
Superannuation-related Taxpayer Alert
A Taxpayer Alert has been issued warning SMSF trustees about an arrangement which may breach the superannuation laws.
Share Transaction Data Matching Program
The Tax Office will be conducting a data matching project to ensure compliance with tax law.
Various Rates and Thresholds
New rates and thresholds have been provided relating to superannuation, income tax and general interest charge.
Perks - New Financial Year with New Leaders at the Helm
Changing of the Guard and Three New Perks Equity Directors.
Law Amendments
A Bill to set the PAYG instalment rate for 2009/10 and to allow taxpayers who voluntarily registered for GST to report their PAYG instalments annually.
Small Business and General Business Tax Break
Changes to the one-off bonus deduction available to business that purchase eligible assets.
2009 Federal Budget Follow-up
A Bill introducing three measures announced in the 2009/10 Federal Budget, including the proposed reduction to the superannuation concessional contributions cap.
Medicare Levy Thresholds 2008/09
Proposed increases to the Medicare levy and Medicare levy surcharge low-income thresholds for 2008/09.
Superannuation Guarantee Ruling
A ruling setting out the Commissioner’s view on the treatment of payments, such as overtime payments and Christmas bonuses, made to employees for the purposes of superannuation guarantee.
Taxpayer Alerts
Five alerts issued by the Tax Office warning taxpayers of arrangements under review, including treatment of losses from the disposal of shares.
Deductibility of Self-education Expenses
The Tax Office’s treatment of the deductibility of self-education expenses against Commonwealth educational payments.
WorkCover Data Matching Project
A data matching project that the Tax Office will be conducting to ensure compliance with the tax law by businesses.
Timing the Economic Recovery- When is it Going to Happen?
The short answer is that it is impossible to accurately predict when the economic recovery is going to come.
Federal Budget- June 2009
2009 Budget Report, summarising the important outcomes of the Federal Budget handed down on Tuesday, 12 May 2009.
Reminder: Individual Tax Rates from 1 July 2009
Changes to the individual marginal tax rates and low-income tax offset.
Data Matching Projects
Three data matching projects the Tax Office will carry out.
PAYG Instalments
An announcement by the government to reduce quarterly PAYG instalments for the 2009/10 income year.
Superannuation Warning
A Taxpayer Alert issued by the Tax Office warning SMSFs of arrangements involving the transfer of benefits associated with in-house assets transitional provisions.
Deductibility of Self-education expenses
A Federal Court decision in which a taxpayer who received the Youth Allowance was allowed a deduction for self-education expenses.
Proposed Amendments to the Tax Law
A Bill introduced by the government to amend various sections of the tax law, including the small business CGT concessions.
FBT and Victorian Bushfires Appeal
The Government will amend FBT laws to ensure employers will not have an FBT liability when employees choose to salary sacrifice part of their salaries to the Bushfires Appeal.
Pension Drawdown Relief
A measure announced by the Government which temporarily suspends the minimum drawdown requirements for pensioners.
'Blackhole' Expenses
The Tax Office’s view regarding whether a taxpayer is entitled to bring forward any unused ‘blackhole’ expenses as deductions when ceasing its business.
Directors Beware
A recent Federal Court decision where the Court held that directors of a company were liable to indemnify the Commissioner for payments made.
Personal Services Income Case
A recent Administrative Appeals Tribunal decision in which the Tribunal found that the income of a company was attributed to a taxpayer as personal services income.
GST and Uncommercial Property Arrangements
Two Alerts released by the Tax Office warning taxpayers that it is currently scrutinising such arrangements.
Proposed Amendment to Tax Laws
A Bill proposing amendments to tax laws including changes to income tests for determining tax and social security program eligibility.
FBT Explanatory Memorandum- March 2009
Developments in FBT
FBT Return Action Checklist- March 2009
Checklist
Tax Refund Scam
The Tax Office have advised taxpayers of two e-mail scams purporting to offer a tax refund.
Keep Your Receipts
Two media releases issued reminding parents to keep their receipts for the Education Tax Refund.
Decisions by the AAT
Three separate AAT decisions have been made concerning main residence exemptions, the deferral of HELP repayments and the assessability of lump-sum payments.
Early Access to Superannuation
An Alert issued by the Tax Office warning people of arrangements offering early access to their superannuation benefits.
Tax Concessions for Businesses
Proposed amendments to the temporary investment allowance, which was announced in December 2008.
One-off Bonuses
Two Bills introduced by the Government to implement the one-off bonuses announced in the Nation Building and Jobs Plan.
New Tax Break on Equipment
Part of the Governments $42 billion dollar stimulus package is a tax break for small businesses to purchase equipment before the end of June 2009.
First Home Owner's Grant
Are you eligible for the recent boost in the first home owner's grant?
Cash Bonus for Taxpayers
The Government announced the following five one-off cash payments for eligible taxpayers.
Bonus Investment Allowance
A temporary 10% investment allowance to encourage capital investment by Australian businesses.
Economic Stimulus Package
On 3 February 2009 the Government released its economic stimulus package, Nation Building and Job Plan.
Social Security Payments
Change to the income test deeming rates and lump sum payments to pensioners and families as part of the Economic Security Strategy.
Trustee of SMSF Charged
A trustee of an SMSF has been charged in court for allegedly breaching his duties.
SMSFs and In-house Assets
In a Draft SMSF Ruling, the Tax Office explains the core concepts contained in the definition of ‘in-house assets’.
Superannuation Guarantee
A Draft Superannuation Guarantee Ruling stating whether payments to employees form part of ordinary time earnings and/or salary or wages.
Abolishing Trust Cloning
The proposed removal of the ‘trust cloning’ exception, which disregards any capital gains arising from certain CGT events.
Allowances and Foreign Earnings
The Tax Office’s view on whether allowances received in relation to foreign employment by a taxpayer are assessable income.
Refunds for Indirect Taxes
A Draft Miscellaneous Taxation Ruling setting out the requirements for a valid notice when an entity is seeking a refund for indirect taxes.
GST and Cancellation Fees
A Draft GST Ruling explaining the GST consequences when entities receive cancellation fees from customers.
Deductibility of Legal Expenses
A recent High Court decision regarding the deductibility of legal expenses incurred by a taxpayer.
Medicare Levy Surcharge Thresholds
The Bill to increase the Medicare levy surcharge thresholds has received enactment.
A year to remember and forget- Review of 2008
2008 is a year most investors would prefer to forget.
Christmas Cheer and the ATO
Some of the potential tax traps in spreading the season’s festive goodwill.
Business Succession Planning for the Family Business
Ensuring ongoing success for your business is not just about tax planning.
Luxury Car Tax Refunds
In our Federal Budget roundup this year, we alerted you to the Government’s intention to increase the luxury car tax.
Equipment Finance
Considering your budget for capital expenditure...
The Obama Victory
Barack Obama's historic election victory in the US is seen by many as a pivotal event...
Budget 2008-09: GIC and SIC Rates Released
Interest rates for the second quarter of the 2008/09 income year.
Budget 2008-09: ITC and Termination of Enterprise
A recent case where the Court found that a company was entitled to claim input tax credit for an expense.
Budget 2008-09: When is an Invoice Issued?
A recent case regarding the timing of when an invoice is issued for GST purposes.
Budget 2008-09: Exempt Fringe Benefits
Two Interpretative Decisions issued by the Tax Office relating to exempt fringe benefits.
Budget 2008-09: Binding Death Nominations and SMSFs
A Draft SMSF Determination stating whether SMSFs are permitted to accept binding death nominations from their members.
Budget 2008-09: Borrowings of Money and SMSFs
A Draft SMSF Ruling explaining the meaning of the phrases ‘borrowing money’ and ‘maintaining an existing borrowing of money'.
Budget 2008-09: Tax Laws Amendment Update
A Bill concerning shareholders and unitholders rights, and the restriction of GST refunds has been enacted.
Budget 2008-09: Luxury Car Tax
Progress of the Government’s measure to increase the Luxury Car Tax.
Budget 2008-09: Medicare Levy Surcharge Thresholds
An update on the Government’s measure to increase the Medicare levy surcharge thresholds for individuals and families.
Budget 2008-09: Education Tax Refund
A Bill proposing to introduce the Education Tax Refund.
Budget 2008-09: Tax Laws Amendment
Proposed amendments to the tax laws which include GST and sale of real property.
Are you getting the best possible deal from your bank?
Your questions are answered...
Budget 2008-09: Compliance Matters
Two compliance activities that the Tax Office is currently conducting.
Budget 2008-09: Off-the-shelf Accounting Software
When computerised accounting software will meet the record keeping requirements for tax purposes.
Budget 2008-09: Trustee of SMSF Charged in Court
Recent case where a trustee of an SMSF was charged with breaching the superannuation laws.
Budget 2008-09: Bonuses and Superannuation Guarantee
Recent case on whether bonus payments should be included in the calculation of an employee’s superannuation guarantee.
Budget 2008-09: Tax Compliance Program 2008/09
An overview of the Tax Office’s Compliance Program for 2008/09.
What are the implications of falling interest rates?
For the first time since December 2001, the Reserve Bank of Australia (RBA) has cut interest rates.
Finding the right loan to suit your business...
From overdrafts to bank bills, we’ll help find a loan to meet your business finance needs.
Budget 2008-09: Overpaid Income Tax Instalments
The Tax Office's treatment of overpaid income tax instalments.
Budget 2008-09: Minors and Tax-free Threshold
Maximum "unearned income" a minor can receive for 2008-09.
Budget 2008-09: Compliance Matters
Various compliance matters that the Tax Office is looking into.
Budget 2008-09: DIS on "Shed Case"
The Tax Office's response to a recent AAT case on CGT main residence exemption.
Budget 2008-09: TPD Premiums Deductions
The Tax Office's preliminary view on the deductibility of total and permanent disability insurance premiums.
Budget 2008-09: Business Establishment Costs
Two Interpretative Decisions discussing the Tax Office's view on the deductibility of business establishment costs.
Budget 2008-09: Self-education Expenses
A recent AAT case on the deductibility of self-education expenses.
Budget 2008-09: SMSF and Sole Purpose Test
A ruling outlining the purposes for which SMSFs must be established and maintained.
Budget 2008-09: SMSF and Financial Assistance
A ruling explaining the prohibition on SMSFs providing financial assistance to members.
What's in store for the Australian economy in 2009?
The ‘R’ Word (Recession) has been tossed around the media recently, primarily because the current economic data suggests...
What should I be aware of when taking out a Mortgage?
Some of the traps you should look to avoid in taking out a Mortgage.
Budget 2008-09: GIC and SIC Rates Released
The Tax Office has released the general interest charge and shortfall interest charge rates...
Budget 2008-09: Car Limits
The Tax Office states that the car depreciation limit for the 2008-09 financial year is $57,180.
Budget 2008-09: Division 7A Interest Rate
The Tax Office has stated that the benchmark interest rate for the 2008-09 income year.
Budget 2008-09: GST and PAYG Instalment Rate
The ATO has advised that the GDP factor used to calculate taxpayers’ GST and PAYG instalment amounts will increase.
Budget 2008-09: PAYG Summary
The Deputy Commissioner has issued a Legislative Instrument that removes the requirement for superannuation funds...
