5 minute tax updates: 7-11 September

SG amnesty is now closed
Foreign exchange rates updated
PS LA 2004/11 on documents used as a tax invoice updated
GIC and SIC rates, October to December 2020
Revenue NSW releases practice note on payroll tax and shares
ATO to issue practitioners with list of their JobKeeper clients
Corporate card holders and no-invoice input tax credit claims
COVID-19 relief: Changes to the ACR and SMSF IAR instructions

ATO live webcast to deal with new the JobKeeper
Hybrid mismatch rule clarification
Child support and wellbeing rules changes
Product ruling addendum amends tax on “indexed rate” borrowing
Refreshed LRBA guidance issued

The definition of “land development” under review in Victoria

SG amnesty is now closed
The ATO says that as per previous announcements in regard to the super guarantee amnesty, the opportunity to use the amnesty is now closed, as at 11.59pm 7 September. If your business clients didn’t apply for the super guarantee amnesty and have any unpaid or late paid super to disclose, they will need to lodge a Superannuation guarantee charge statement and pay the super guarantee charge (SGC). And here’s how to make sure they don’t trip up when they do this.

Foreign exchange rates updated
List of daily, monthly and annual foreign exchange rates on the ATO website, updated to include monthly rates from the Reserve Bank of Australia for August 2020.

PS LA 2004/11 on documents used as a tax invoice updated
The ATO has updated its practice statement law administration PS LA 2004/11 (treating a document as a tax invoice or adjustment note). The update adds additional information about administrative review rights and disputes (with reference to PS LA 2009/9, which deals with disputes and litigation).

GIC and SIC rates, October to December 2020
The ATO has published the general interest charge (GIC) rates and shortfall interest charge (SIC) rates for the period from 1 October 2020 to 31 December 2020.

Revenue NSW releases practice note on payroll tax and shares
Practice note CPN013 deals with payroll tax as applied to wages which are provided in the form of shares and options, or are based on shares and options, under an employee share scheme.

ATO to issue practitioners with list of their JobKeeper clients
In order to help with tax time this year, the ATO says it will soon be providing practitioners with a list of their clients who have been enrolled in the JobKeeper scheme and have received JobKeeper Payments as an employer or eligible business participant. It also briefly runs through the tax treatment of payments for the variety of entities practitioners will be dealing with.

Corporate card holders and no-invoice input tax credit claims
The draft GST legislative determination WTI 2020/D1 has been issued, which looks at when corporate cardholders can claim input tax credits without holding a tax invoice in certain circumstances. It replaces a previous determination, and applies to tax periods on and from 10 February 2020.

COVID-19 relief: Changes to the ACR and SMSF IAR instructions
The ATO updated the Independent auditor’s report instructions (IAR) so that auditors would not need to modify their opinion in Part B of the IAR with respect to certain contraventions arising from the impacts of COVID-19 for the 2019–20 and 2020–21 financial years. But after feedback from auditors, it has now reverted the IAR instructions back to their original wording to alleviate these concerns and ensure consistent auditor reporting.

ATO live webcast to deal with new the JobKeeper
Practitioners may want to mark next Thursday 17 September on their calendar, which is when the ATO will be hosting a live webcast that among other topics will look at the extensions to the JobKeeper payment scheme, and changes from 28 September 2020. An expert panel will be in attendance, comprised of representatives from the ATO, the Tax Practitioners Board (TPB) and professional associations. You can email questions for this panel by close of business Monday 14 September.

Hybrid mismatch rule clarification
Australia’s hybrid mismatch rules have been updated with a number of technical amendments in order to clarify and improve the rules’ operation. The guidance from the ATO comes after the Treasury Laws Amendment (2020 Measures No.2) Act 2020 became law on 3 September 2020.

Child support and wellbeing rules changes
Recently achieving royal assent on 7 September is the Family Assistance Legislation Amendment (Improving Assistance for Vulnerable and Disadvantaged Families) Bill 2020. The bill makes changes to ACCS (child wellbeing) to improve assistance to vulnerable and disadvantaged families and clarify and better reflect policy intent in several areas. Also included are changes to the calculation method used when an individual whose relationship status changes throughout the year meets the Child Care Subsidy (CCS) reconciliation conditions.

Product ruling addendum amends tax on “indexed rate” borrowing
An addendum has been issued to amend PR 2020/4 that will affect the taxation consequences for a borrower being charged an ‘indexed rate’ of interest under a home loan. The addendum reflects a change in the entity involved in the administration of the scheme.

Refreshed LRBA guidance issue
The ATO has issued a document, modified up to 9 September, that provides general information about its current views on issues that trustees of SMSFs may need to take into account when considering entering into an LRBA. It also provides guidance regarding the application of the Superannuation Industry (Supervision) Act 1993 (SISA) and related super rules to such arrangements. It does not deal with tax issues other than general references when discussing the application of the super law.

The definition of “land development” under review in Victoria
Draft revenue ruling DA-064, issued by the Victorian State Revenue Office, considers what constitutes “land development”, as defined in s 3(1) of the Duties Act 2000 (Vic). The draft ruling proposes that the Commissioner will need to consider the tangible and intentional actions associated with developing and changing the use of land, as well as the overall effect and consequence of the activities. Comments are open until 7 October at consultation@sro.vic.gov.au.

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