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Public finances and tax reform

Everyone (well almost everyone) accepts the Australia has a public finance problem. Even those who have previously argued that our public debt levels are acceptable have begun to argue for changes to fix up our public finances. And recently the loudest voices for public finance reform have been on the revenue side, not the expenditure […]

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Discretionary Trusts and Bill Shorten

Today Bill Shorten will announce… … a minimum 30% tax on trust distributions to those over 18 years old The only exemption we will get in the speech is that… …it does not apply to charitable, testamentary, deceased or farming trusts So it looks like there will be a new tax, lets call it the […]

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More super changes

On budget night this year the government announce two new changes to super, both relating to housing. And we now have draft legislation for both. The first is called the First Home Super Saver Scheme (or FHSSS – now that will be easy to remember). The FHSSS will apply to voluntary superannuation contributions of up to […]

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Foreign residents lose the main residence exemption

As part of the May Budget, the Government announced reforms to the operation of the CGT rules for foreign residents. One of these reforms is to remove the entitlement to the CGT main residence exemption for foreign residents that have dwellings that qualify as their main residence. We now have draft legislation implementing this change and […]

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Unpaid Present Entitlements to a Corporate Beneficiary… Not Again

The Commissioner has released a Practical Compliance Guideline to help those who used PS LA 2010/4 to sort out their UPEs to corporate beneficiaries 7 years ago. PSLA 2010/4 states that the Commissioner will not treat the UPE to the corporate beneficiary as a Div 7A deemed dividend if, under a written agreement, the trust pays […]

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Tax Depreciation Changes

In the Budget the Government announced a change to tax depreciation. They have now released draft legislation implementing this announcement. So what does this mean for those with rental properties and those who produce tax depreciation schedules… A lot! Under the proposed section 40-27, entities may NOT deduct amounts under Division 40 or Subdivision 328-D […]

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Who are the Tax Dodgers?

If you read the newspapers it is those evil multinationals. But a recent speech by the Commissioner might dispel that myth. Have a look at these quotes: The first cab off the rank will be the large market corporate tax gap which we will release formally next month. In the lead up to that formal release, today […]