Category: Legislation
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Start up Employee share scheme just got fun….
We have blogged about this before but we now have some draft legislation that will make 1 July 2015 lots of fun for advice to start up companies. While this draft legislation makes other changes as well**, this will also make remunerating certain employers lots of fun. These Start up companies will be able to…
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What are we waiting for in tax and super – Announced but unenacted changes…
Next year we will be looking at a Government White paper on reforming the tax system (what did I do in 2008 on the Henry Review?!?!?!). And this time we will review the tax system with failing public finances. But before we start, once again, coming up with the simple, equitable, efficient and adequate tax…
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The End of Excess Contributions Tax Mark 2
In the Tax and Superannuation Laws Amendment (2014 Measures No 7) Bill 2014 we finally get the final rules that will allow the refund of excess non-concessional contributions. We have discussed this change when it was released as draft legislation. But the final legislation is different from the draft legislation in the following ways: There is no longer a…
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A new”ish” CGT rollover
The Government has introduced Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill 2014 into the Parliament. Most of the amendments in this Bill will be of no consequence for the majority of taxpayers. However, as a part of making some changes to certain CGT rollovers, the Government has decided to rewrite them into…
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The ALMOST end of Excess Contributions Tax
In the last budget the Government announced the end of Excess Contributions Tax. The announcement was that, just like was already the case for excess concessional contributions, from 1 July 2013 if a taxpayer makes excess non concessional contributions, rather than assessing them with Excess Contributions Tax, the super fund could refund the excess amount.…
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Using imputations credits in an entity that does not have retained earnings
I have been asked a few times about using imputations credits in an entity that does not have retained earnings. Well there are a series of ways to do this. What people often try to do in the small end of town is to drop in some tax free income (often using section 23AJ or…
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“Excess GST”, “passed on”, “reimbursed”…
One of the best amendments to the GST Act ever was inserting a new Division, Division 142. This Division applies to tax periods starting on or after 31 May 2014. The object of Division 142 is to ensure that excess GST is not refunded if this would give an entity a windfall gain. In summary,…
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Gardening leave and personal services income
I never thought I would read the term “gardening leave” in a tax ruling but it is the main issue in draft taxation determination TD 2014/D15. The issue is whether the payment you get while you are on gardening leave (which if you don’t know is when you are told to go home, work in…
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Instant Asset Write Off Clarity – Successful negotiation with a PUP
I know I should wait until the Bill goes back to the House of Reps this evening to confirm the Senate amendments before writing this post but… From 1 January 2014 (installed ready for use from this date) the instant asset write off for small businesses is $1,000 (down from $6,500). Also, there is no…
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Divorce and Division 7A
In Taxation Ruling TR 2014/5 the Commissioner confirms one of the most overlooked tax issues in marriage breakdowns. For example, if money or property is paid or transferred to a shareholder, if these payments are paid out of the private company profits, it will generally be an assessable dividend. In addition, money or property transferred…
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