Category: Uncategorized
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Biden proposes “Billionaires tax’ that applies to people worth over $100 million… Americans and their maths!
At the same time that the Australian Government provided a Yawn Budget, the President of the US released his budget. His is much more interesting, especially as there is no way it will ever become law so he can pretty much say anything. Other than promising over $850 billion for defence (substantially more than all…
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Another boring budget
Another Budget and no substantial change to the tax and super system, even when they have had some genius ideas from a amazing tax guru… So what did we get in this pre election budget? LMITO increase The only change announced for individuals is that the Government will increase the low and middle income tax…
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The Commissioner is going after trust distributions
Have you ever heard of section 100A in the 1936 Act? This section allows the Commissioner to ignore any present entitlement you created and tax the trustee at the highest marginal rate. So when can the Commissioner do this? Where a beneficiary’s present entitlement to a share of trust income arises out of, or in…
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My Dad was a tax dodger – using me…
When I was at Uni my Dad would have the family trust cut a $5,200 cheque for me, which I would bank, get a bank cheque, and give it back to dad with a note thanking him for paying for my Uni (he paid my HECS upfront). But today the Commissioner has announced he thinks…
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Have you every wondered…
How much it costs in lost tax revenue for the concessional tax treatment of super… Just $47 billion a year (made up of tax lost on earnings $22.6b, tax lost on e/er contributions $20.5b, tax lost on CGT in super $2.6b, tax lost on personal contribution concessions $1.4b) How much it costs in lost tax revenue for…
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Money can get to New Zealand but I can’t
I turn 50 this year and for my birthday I want to be hiking through the mountains of the South Island. But I may not be able to. However, unlike me, unclaimed superannuation can travel back to New Zealand. The Government has made regulations to assist the Commissioner in returning unclaimed super to New Zealanders.…
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What would Labor’s Discretionary Trust Minimum tax look like?
It looks like Labor may keep one tax promise from the last election and run it in this election. And it is a big change to our favourite discretionary trusts. Everything below is just from the policy document from last election. Labor MAY introduce a standard minimum rate of tax of 30% for discretionary trust distributions…
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“But that is not fair” is not an argument!
When I explain how the tax law works some times I am told I can’t be right as that is not fair… In the case of DGSC and Commissioner of Taxation (2021) AATA 4816 the taxpayer was both an employee and ran her own business. When JobKeeper arose she completed the form from her employer…
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The Commissioner can get any info he wants…
Yesterday I was asked for advice on whether a compensation payment was taxable. I asked what it was compensation for and was told that that was confidential. I explained that whether compensation is taxable depends on what it is compensation for, and if the Commissioner asks for the compensation agreement he can get it. I…
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Trust “reimbursement agreements” – the new war with the Commissioner
Since 1978 there has been a scary anti avoidance provision in the back of the trust tax rules in the ITAA36 called “reimbursement agreements” that the Commissioner has generally ignored… What makes it even scarier is in February 2022 the Commissioner is about to start using this section (100A) and his first offensive will be…
