Reforming the taxation of discretionary trusts

(08/02/2019) In recent years there has been much debate about the effectiveness and fairness of Australia’s current rules for taxing discretionary trusts. These trusts are very popular and are widely used for holding investments, conducting businesses and succession planning. However, a recent ATO-commissioned study that highlights several problems with trust taxation rules, together with changes […]

Data-matching paid parental leave and Medicare entitlements

(27/07/2018) ATO will acquire the details of individuals in receipt of paid parental leave payments and Medicare entitlement statements from the Department of Human Services for the 2017-18, 2018-19 and 2019-20 financial years for a data-matching program. The data items expected to be obtained for the parental leave scheme include information on the employer, recipient […]

New destination for super complaints

(21/09/2018) Previously if a member of a super fund had a complaint relating to the areas of regulated superannuation funds, annuities and deferred annuities, or retirement savings accounts, they would lodge the complaint with the Superannuation Complaints Tribunal (SCT), after approaching the fund first, of course. From 1 November 2018, these complaints will now be […]

Tax consequences of compensation for dodgy advice

(09/11/2018) The Royal Commission into misconduct in the banking, superannuation and financial services industry has revealed some major deficiencies in terms of financial advice provided to consumers. Even though the Commission itself cannot fix or award compensation or make orders to require parties to a dispute to take or not take any action, the media […]

Deemed dividends: changes are coming

(16/11/2018) If you own a private company, deemed dividend payments or Div 7A may be familiar to you. In short, it is designed to ensure that income is not inappropriately sheltered in corporate structures at the corporate tax rate. It usually applies when a private company provides a benefit to a shareholder (or their associate), […]

Director identification numbers coming soon

(02/11/2018) Being a director of a company comes with many responsibilities, this could soon increase with a government proposal to introduce a “director identification number” (DIN), a unique identifier for each person who consents to being a director. The DIN will permanently be associated with a particular individual even if the directorship with a particular […]

Increasing penalties for white-collar crime

(26/10/2018) As the Royal Commission into the misconduct in the banking, superannuation and financial services industry rolls on and uncovers more unscrupulous behaviour by the corporate and financial sector, the government is attempting to get on the front foot by addressing the perceived persistent misconduct by proposing to strengthen the penalty framework and enforcement regime […]

Reportable payments system to be extended (28/09/2018)

As a way to combat the rise in black economy, the government is planning to extend the Taxable Payments Reporting System (TPRS) to entities that provide road freight, IT, security, investigation, or surveillance services. The TPRS is a transparency measure that was first applied to the building and construction industry. It required businesses to report […]

Improvements to GST risk assessment (21/09/2018)

The Inspector-General of Taxation (IGT) has recently released his review into the verification of GST refunds by the ATO. The review was initially conducted as a response to concerns raised by taxpayers which had their GST refunds delayed as a part of the ATO risk assessment program to verify certain details before refunds are issued. […]

Corporate tax rates: recent changes give certainty (14/09/2018)

There’s finally some certainty about the corporate tax rate(s). Legislation has recently passed Parliament and the fate of other proposed changes has also been finalised. The rate of 27.5% applies to corporate tax entities known as “base rate entities”. These are companies which carry on a business and have an aggregated turnover of less than […]