High Court confirms Full Federal Court’s Harding tax residency ruling

The ATO’s application for special leave in the residency matter of Harding v Commissioner of Taxation has been refused by Australia’s High Court. This means the decision of the Full Federal Court (FFC) holds, which essentially provides a wider interpretation of the meaning of “permanent place of abode” than had previously been the case. It

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SG amnesty idea re-surfaces, but with an extended period of application

Last year’s 24 May announcement of an amnesty for employers who come forward to correct underpayments of their super guarantee obligations has been resurrected in a new bill. The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 however extends the period of grace that will allow employers who come clean to not have the usual

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Amendments to FBT definition of “taxi” imminent

Treasury has just released some miscellaneous amendments that include a redefinition of the word “taxi” in regard to certain tax arrangements. An exposure draft addresses the ongoing problem for taxpayers around the definition of taxi for FBT purposes (see the second link on this Treasury webpage, “Miscellaneous Amendments Bill Explanatory Memorandum”, and scroll to page

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Asbestos removal, even testing, may be deductible

There is a taxation ruling (in draft form at the moment) that spells out when a rental or commercial property owner may be able to claim a deduction relating to expenditure incurred by activities undertaken to deal with pollution issues and other environmental protection purposes. The ruling, TR 2019/D3, does not define “pollution”, which therefore

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Drawdown rates: Too high, too low, about right?

Once one of your clients starts a pension, there is a legislated minimum amount required to be paid out each year. There is no maximum amount other than the balance of their super account, unless it is a transition to retirement pension that is not in retirement phase, in which case the maximum amount is

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Benefits that attract FBT, but not the requirement to report them

Your employer clients may have heard now and then about certain fringe benefits that, while still subject to the tax, do not have the same reporting burden as other benefits. There can be consequential or flow-on affects from this exemption from reporting, such as the influence this can have on adjusted taxable income (ATI). Employers

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The SMSF sector is growing by $23,200 every minute

The latest statistical report from APRA has been released (here’s a link to download it), which of course mainly focuses on the APRA-regulated superannuation funds in the retail and industry sectors. But the APRA statistics also make passing mention of ATO-regulated funds, the SMSF sector, which from June 2018 to June 2019 grew in total

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Super downsizer scheme: The take up so far (and some common errors)

The “Reducing Pressure on Housing Affordability Measure” — a bill with a second part that is otherwise known as the super downsizer scheme — started on 1 July 2018 and has allowed older Australians to sell their homes and contribute up to $300,000 of the proceeds from the sale into super. Recent figures from the ATO

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