Decision in disclaiming interest in trust distribution
High Court rejects attempt to disclaim interest in trust distribution The High Court has rejected a taxpayer’s attempt to disclaim an interest in trust income that arose as a result of a default beneficiary clause being triggered. This decision is significant, because it backs the proposition that disclaimers of trust income cannot be effective if […]
2022-2023 Budget Measures that are now law
Low and Middle Income Tax Offset A measure that will no doubt be beneficial for individual taxpayers is the increase in the Low and Middle Income Tax Offset (‘LMITO’) for the 2022 income year by $420. The LMITO is a tax offset that reduces an individual taxpayer’s tax liability. This means that the maximum amount […]
Payroll matters February 2022
Higher PAYG withholding rates continue to apply to backpackers As we recently communicated, the High Court has held that the ‘working holiday maker tax’ (also known as the ‘backpackers tax’) did not apply to a taxpayer on a working holiday visa from The United Kingdom who was also an Australian tax resident. This was due […]
‘Backpacker tax’ may not apply to some backpackers
Working holiday maker tax ruling Employers should be aware of the application of the Double Tax Agreement between Australia and the United Kingdom. The High Court has held that the ‘working holiday maker tax’ (also known as the ‘backpackers tax’) did not apply to a taxpayer on a working holiday visa from the United Kingdom […]
Data matching update
AUSTRAC transaction report information data-matching program The ATO will acquire transaction report information data from AUSTRAC for the period of 17 June 2021 through to 30 June 2027. AUSTRAC (the Australian Transaction Reports and Analysis Centre) is the Australian Government agency responsible for “detecting, deterring and disrupting criminal abuse of the financial system to protect […]
Business tax update October 2021
Extending administrative relief for companies to use technology The Government has passed legislation renewing the temporary relief that allows companies to use technology to meet regulatory requirements under the Corporations Act 2001. These temporary relief measures will allow companies to hold virtual meetings and use electronic communications to send meeting materials and execute documents until […]
Property investor common tax traps
ATO warns property investors about common tax traps In 2019/20, over 1.8 million Australians owned rental properties and claimed $38 billion in deductions, so the ATO is reminding property investors to beware of common tax traps that can delay refunds or lead to an audit costing taxpayers time and money. The most common mistake rental […]
Rent or lease payment changes due to COVID-19
Rent or lease payment COVID-19 changes The ATO has provided updates regarding the tax implications when a landlord gives, or a tenant receives, rent concessions (such as waivers or deferrals of rent) as a result of COVID-19. For example, the ATO provides the following advice for tenants that have received a rent waiver. If the […]
Cryptocurrency tax obligations
Cryptocurrency under the microscope this tax time The ATO is concerned that many taxpayers believe their cryptocurrency gains are tax-free, or only taxable when the holdings are cashed back into Australian dollars. ATO data analysis shows a dramatic increase in trading since the beginning of 2020, and has estimated that there are over 600,000 taxpayers […]
Family trust elections
Review your family trust elections to get your tax right A family trust for tax purposes is one whose trustee has made a valid family trust election (FTE). The FTE entitles the trust to access certain concessions, however family trust distribution tax (FTDT) is imposed when distributions are made outside the family group. The ATO’s […]
