Daily Update – 7 December 2021


Federal Budget submissions sought
The Federal Government is seeking submissions from individuals, businesses and community groups on their priorities for the 2022-23 Budget. The Government places considerable importance on receiving submissions in developing its budget strategy and policies. The submissions are due by close of business on 28 January 2021.

Excess super contributions tax: no basis to reallocate or remit
The AAT has affirmed that a taxpayer was liable for excess superannuation contributions tax. The liability arose from the receipt of a redundancy payment (including leave entitlements) of over $250,000 at the end of the 2017-2018 income year. The AAT found that the redundancy and leave payouts were part of his 2017-2018 income and that it did not have any discretion to reduce, disregard or reallocate them to another financial year. It also found that there was no discretion to remit or reduce the liability for “special circumstances”. (KXCS and FCT [2021] AATA 4498, 3 December 2021.)

ACT duty: Circular issued on landholder duty
This ATO Revenue Office has issued Circular LHD001 which identifies how landholder duty in the ACT is calculated, including how relevant acquisitions are valued. Among other things, it provides that there is no duty payable until an acquisition results in ownership in a landholder of 50% or more. It also provides that there are two primary methods for calculating landholder duty and that the method used depends upon if there is a single acquisition in a relevant period or multiple acquisitions in a relevant period.

ATO updates website on foreign exchange rates
The ATO has updated its website page on foreign exchange rates. It sets out the general rule that all foreign income, deductions and foreign tax paid must be converted to Australian dollars before being included in a tax return and that, generally, these require amounts to be converted at the exchange rate prevailing at the time of a transaction, or at an average rate. It also contains records of: daily rates; monthly rates; end of financial year rates; end of calendar year rates; and rates prior to 1 July 2003. Importantly, the ATO also states that “if you require a foreign exchange rate for a currency not listed in the schedule, you may use any reasonable externally sourced exchange rate for that currency”.

Post a comment