ASIC concerns lead to robo-advice tools being shut down

A Sydney-based AFSL holder has agreed to close some of its digital advisory offerings after ASIC made approaches to it with concerns over the quality of advice distributed by the robo tools. The online robo tools concerned were providing automated financial product advice using algorithms and technology with no flesh-and-blood advisers involved. The areas of

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Omnibus tax integrity bill sent back to House with amendments

There is a bill making its way through Parliament at the moment, the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019, that could be described as an omnibus bill — a quick look at its table of contents can confirm this. The bill however met with amendments in the Senate,

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Deductions for pokies operator firmly rejected by High Court

A unanimous decision by the High Court has allowed an ATO appeal against a previous decision to allow a pokies operator in Victoria deductions for expenditure paid to acquire gaming machine entitlements. The respondent in the High Court case, the sole beneficiary of a trust operating the Daylesford Royal Hotel, had been successful in an

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ATO “heavy focus” on SG obligations starts by targeting small sample of employers

The ATO’s Deputy Commissioner, Superannuation and Employer Obligations, James O’Halloran, has announced in a speech to the Australian Institute of Superannuation Trustees (AIST) that with the ATO’s new STP-enabled “unprecedented level of visibility” of transactional data, especially on super information, that it is focusing on using this capability to rein in SG non-payments. “We have

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The tax agent and BAS agent portals are shutting soon

For some time now, the ATO has been making efforts to transition tax practitioners from the incumbent tax agent and BAS agent portals to its new Online services for agents system.  A public beta version closed in August last year, and since then detailed information has been made available, as well as information on related

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No residency status for working holiday maker, despite 10-month stay

The Federal Court has upheld an ATO decision regarding a US “gap year” worker (Stockton v Commissioner of Taxation [2019] FCA 1679). Aged 18 at the time of her first arriving in Australia, US citizen Rebekah Stockton spent most of the time between finishing high school studies and starting her tertiary education working various jobs

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Draft TD directs that capital gains are not to be included in FITO limit

A draft taxation determination has been issue by the ATO to clarify that capital gains are not included (under subparagraph 770-75(4)(a)(ii) of the Income Tax Assessment Act 1997) when calculating the foreign income tax offset (FITO) limit. TD 2019/D10 says the FITO limit calculation involves a comparison between Australian tax actually payable and the Australian

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5 minute tax updates: October 7 – 11

Testamentary trust change proposedExpansion of estimates regime to GST, LCT and WETExtra time for new clientsSuper guarantee opt out formNo more spreadsheet TBAR lodgments WTO looks to Australia for effective cross-border VAT modelJail after stealing identities and lodging 62 fraudulent returnsAre your clients using STP? The ATO will tell youGST on financial supplies: Two important

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LRBA amounts now included in TSB calculation

The calculation of an individual’s total superannuation balance (TSB) will now include, in certain circumstances, the outstanding LRBA amount attributable to each member’s interest where the fund has an LRBA that was made under a contract entered into on or after 1 July 2018. This will apply if: the LRBA is with an associate of the

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Natural love and affection gets a debt make-over

The ATO withdrew its long-standing Interpretative Decision 2003/589 in February this year, which dealt with circumstances where a company can forgive a debt owed for reasons of “natural love and affection” and not trigger consequences under the commercial debt forgiveness rules. Little reason was given for the withdrawal of ATO ID 2003/589, other than declaring

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