Category: Uncategorized
-
SMSFs and Non-Arms Length Expenses
The Commissioner has released a draft Ruling (LCR 2018/D10 Non-arm’s length income – expenditure incurred under a non-arm’s length arrangement) on the proposed amendments to section 295-550 so that the non arms length income rules for super funds will apply to a scheme where a superannuation entity incurs non-arm’s length expenditure, or where expenditure is…
-
Can Australia fix its public finances if those evil big businesses paid their fair share of tax?
I doubt there are any, but if there are any regular readers of this crazy blog, they will know I have for many years screamed at the argument that Australia can fix its public finances if only those evil big businesses paid their fair share of tax. And yes, I have been gloating that this…
-
A paper on the proposed changes to Division 7A
If you want more analysis of the Treasury’s proposed changes to Division 7A in its October 2018 paper, and lots of complaints about how they have handled the process and the outcomes, I have written a paper on it that can be downloaded by clicking on the link below. Enjoy. Division 7A to change
-
Division 7A – Changes, changes and more changes proposed to start from 1 July 2019
The Government has promised a series of changes to Division 7A and we have finally got an idea of what these changes will be. Remember this is just a discussion paper, but I am confident these all will occur. Change 1 – Simplified Loans The biggest change is that the current 7 year and 25…
-
No deductions for expenses related to holding vacant land
On Budget night in May the Treasurer indicated there would be changes from 1 July 2019 that would deny some deductions for expenses related to holding vacant land. In Exposure Draft – Treasury Laws Amendment (Measures For A Later Sitting) Bill 2018 we finally have an idea of what they are going to stop us claiming…
-
Yes, changes to company tax rates again…
But not for a few years… As we have previously discussed here, there are two company tax rates. They are 30%, or if the company has an aggregated turnover under $50m ($25m last year) and has less than 80% of its income from “base rate passive income”, the rate is 27.5%. In the Treasury Laws…
-
Everatt assignments and the SBCGT concessions
We now have Exposure Draft legislation that proposes to prevent the small business CGT concessions from being available for assignments of the income of a partner and other rights or interests in the income or capital of a partnership that are not a membership interest in the partnership. Since the 1980 High Court decision in…
-
Do your homework when working from home
Last year, 6.7 million taxpayers claimed a record $7.9 billion in deductions for ‘other work-related expenses’ which includes expenses related to working from home. This worries the Commissioner… Technology-driven changes to the employment market are seeing record numbers of Australians claiming deductions for expenses incurred while working from home. But a high level of mistakes,…
-
Small Business CGT Concessions Anti Avoidance Measures Bill Passes Parliament
We finally have some long-feared changes to the small business CGT concessions. These are in the Treasury Laws Amendment (Tax Integrity and Other Measures) Bill 2018 and have now passed the Parliament. These changes propose to add additional basic conditions for these concessions to apply, but only where the CGT asset is share in a company…
-
Learning from the Solomon Islands – No deductions if no withholding coming to Australia…
I have spent some time working with the Inland Revenue Division of the Solomon Island. Way back in 2005 the Solomon Island Government introduced subsection 20(2A) into their income tax legislation. It states: By 1 July 2019 the Australian tax system will catch up with our neighbours (this is and unfair criticism as the Solomon…
