Posts

The Federal Budget 2019-20 – a deeper analysis

Image
Written by Professor Bob Deutsch, CTA, Senior Tax Counsel
The Federal Budget delivered by the Treasurer, Hon. Josh Frydenberg on 2 April 2019 did not contain the usual array of tax changes that we are accustomed to in previous budgets.
Nonetheless, there were some important changes, some of which I have already discussed on Budget night and upon which I will now elaborate.
Personal income tax changes
The most significant immediate change is the expansion to the low and middle-income tax offset which will apply with immediate effect, in the sense that it will apply to the 2018-19 tax year. This will deliver $1,080 per annum for each individual single who is eligible and slightly more than double that for a couple. Those on incomes between roughly $45,000 and $95,000 per year will receive the full benefit...
Members, you can access Bob Deutsch’s Federal Budget 2019 analysis on our site. You will need your Username to access. 
Members, we welcome your thoughts via the TaxVineFeedback inb…

Super reporting – What is in and what is out?

Image
The 2017 financial year saw the most significant changes in superannuation law for more than a decade.

The introduction of new concepts including Total Super Balance and Transfer Balance Cap from 1 July 2018 had significant consequences for member superannuation balances in the 2017 financial year and for future periods. Further restrictions contributions were introduced, as well as new reporting obligations for superannuation funds.

In her paper, 'Super Reporting – What is in and What is out?', presented at our National Convention in March, Shirley Schaefer looked at the issues facing advisers.

Speaking to us before the Convention, Shirley told us "With the super goal posts moving at a constant rate, my session provides delegates with a snapshot of current changes and what the obligations of their clients are and how they can help them. It will give delegates the information and tools they need to ensure that their clients keep on the ‘right’ side of the regulators&quo…

IP, goodwill, and protecting the recipe

Image
At the 26th Noosa Intensive, Clint Harding, CTA, (Arnold Bloch Leibler) presented the session ‘Protecting the recipe’, where he looked at how intellectual property is defined, goodwill, and some of the key legal mechanisms that can be used to govern and protect the use of valuable ip.

In the paper he presented, excerpted in this post, he then looked at how structures can be optimised for both ip protection and retaining access to any concessions, grants or incentives that may be available, as well as some of the tax issues associated with ip that you need to be aware of during the lifecycle of a business.

What is Intellectual Property?

Properly identifying and understanding early stage intellectual property is critical when it comes to planning for the future. The creation and development of intellectual property can happen fast and the accounting and taxation treatment associated with it can be complicated. In order to ensure the optimal business structure is in place to protect and …

CTA Dux graduate: “hard work pays off”

Image
Rachel Vijayaraj, CTA, weighs in on the Chartered Tax Adviser (CTA) Program and how it’s supported her career.
We caught up with Rachel Vijayaraj, CTA at the 34th National Convention in Hobart. She is a Senior Associate at Brown Wright Stein Lawyers. She was also awarded Duce in CTA3 Advisory, the final subject in the CTA Program before obtaining the CTA designation.
“I've been practising as a lawyer for the last 10 years,” she says.
“In the early part of my career, I practised in tax disputes (and that still forms a part of my practice) although my interests have led me to specialise in trusts, estates, and not-for-profits with a focus on tax.”
Rachel says the most valuable aspect of the CTA Program was the collaborative approach in learning with peers, and particularly in consolidating her tax knowledge in areas that she might not practice regularly.
“One of the key areas of new confidence for me was studying the elective corporate tax,” she says. “I've practised in the S…

Discretionary trusts: can I vary a trust deed so it is not a "foreign person" for duty and tax purposes?

Image
Sponsored post from our partner, Thomson Reuters


Sometimes leaving open the possibility of foreign resident beneficiaries in discretionary trusts - intended as a vehicle for holding or purchasing land in Australia - can result in unnecessary additional duty and taxes for otherwise compliant trusts.

This video and accompanying article will give you a snapshot of the issue, some practical examples and possible solutions.



Written for Thomson Reuters Cleardocs by Susannah Stanford, Maddocks Lawyers

Exclusive for readers of The Tax Institute blog, you can access the latest Trusts Tax Bulletin for a more in-depth view, including legislative announcements and developments. Click here.
What is the issue? The most common reason for a discretionary trust deed to explicitly exclude foreign beneficiaries is the State-based foreign purchaser duty and land tax regimes.

Foreign duty surcharge rates and rules differ depending on the State in which particular land is situated but surcharge rates of dut…

What happened in tax in March?

Image
Written by TaxCounsel Pty Ltd

The following points highlight important federal tax developments that occurred during March 2019.

Each month, these developments are considered in more detail in the 'Taxing Issues' column of Taxation in Australia, the Institute's member journal.

Phoenixing amendments

An amending Bill introduced into parliament on 13 February 2019 contains a range of amendments directed at combating illegal phoenix activity.

Instant asset write-off

Also introduced into parliament on 13 February 2019 was an amending Bill that contains amendments that will implement the instant asset write-off changes that have been announced.

Company loss amendments

The amendments to the ITAA97 and the ITAA36 which supplement the “same business test” with a “similar business test” for the purposes of (inter alia) working out whether a company’s tax losses and net capital losses from previous income years can be used as a tax deduction in a current income year are now law.


Educati…

The ATO’s director penalty notice powers

Image
The ATO’s enhanced debt collection powers against directors and other third parties seem to be continually expanding, but the fundamental touchpoint remains the director penalty notification mechanism, which has developed a very substantial body of law.

Government announcements that want to press errant directors to pay a widening field of withheld amounts seem to be happening on a regular basis. When coupled with the parliamentary inertia that happens with minority governments, the passing of such proposed legislation with amendments is both intermittent and usually unannounced. 
This process seems to lead to a state of confusion and an inability to properly interpret the DPN rules. 
In this article, from Taxation in Australia, excerpted here, Arthur Athanasiou, CTA, and Mark Gioskos, FTI, review the DPN rules and consider imminent legislative changes. 
They also look at how individuals other than directors might become liable under the DPN rules, and the ATO’s take on the liability…