Coalition would appoint ATO Second Commissioners from private sector
Shadow Treasurer Joe Hockey has announced that the Coalition would expand the number of Second Commissioners by 4. While appointments would be based on merit, he said these 4 additional part-time appointments would be individuals “who have deep experience in the private sector”. These Second Commissioners would be based outside of Canberra. Ideally they will ...more
Bypass super contributions caps with a transitional termination payment before 30 June 2012
Taxpayers eligible for an employment termination payment pursuant to a legal entitlement in place before 10 May 2006 have a unique opportunity to make the most of transitional tax concessions. These taxpayers (predominantly senior executives) have until 30 June 2012 to channel a transitional termination payment (such as a golden handshake) up to $1 million ...more
2012-13 Federal Budget: a small surplus, company tax cut scrapped, plus many more tax and super changes
On 8 May 2012, the Treasurer handed down the 2012-13 Federal Budget, his 5th and arguably most challenging (and perhaps most controversial), Budget. The much talked about and speculated surplus has materialised. The Treasurer revealed a $1.5bn surplus for 2012-13 (see further details below). The pre-Budget speculation about reduced tax breaks for companies to help ...more
CGT rollovers: ATO administrative treatment
The ATO has released details of its administrative treatment regarding the amendment to allow Australian resident interest holders access to a broader range of CGT rollovers where an entity restructures using a share or interest sale facility for foreign interest holders, contained in the Tax Laws Amendment (2011 Measures No 9) Act 2012. The Act ...more
This year’s Federal Budget: a surplus (maybe), but what about tax changes?
In a recent address to the Australian Business Economists in Sydney, the Treasurer spoke about the coming Federal Budget and the challenge it presented in the context of achieving a surplus in a difficult revenue environment. While he did not foreshadow any specific Budget measures, some “reading between the lines” might give an indication of ...more
CGT treatment of earnout arrangements
It was this time 2 years ago, on 11 May 2010 in the 2010-11 Federal Budget, that the Government announced it would amend the law to change the CGT treatment of earnout arrangements. Broadly, under the proposal, all payments received under an earnout arrangement would be treated as relating to the underlying business assets (ie ...more
Super income streams: ATO final ruling deferred
The ATO’s planned release date for the final version of Draft Ruling TR 2011/D3 (Superannuation income streams – commencement and cessation) has been deferred to 30 May 2012, according to the latest ATO public rulings program. The planned issue date for the finalisation of Draft Ruling TR 2011/D3 was previously listed as 24 April 2012. ...more
inTAX magazine: May 2012
The May 2012 edition of inTAX magazine features an article discussing the implications of the Tax Office’s Draft Ruling on the meaning of “income of the trust estate” (Draft TR 2012/D1). James Meli, Tax Supervisor at Hall Chadwick writes that “the Commissioner applies an interpretive device to conclude, among other things, that the ‘income of ...more
Negligent CGT advice claims on the rise
Many years ago, the Supreme Court of Western Australia in Briar Holdings Pty Ltd v Capolingua (1997) 37 ATR 135 found that an accountant was liable in negligence for failing to structure an arrangement to take advantage of CGT rollover relief to preserve the pre-CGT status of asset under some restructure. It was little comfort ...more
Income testing the private health insurance rebate is coming soon
Income testing the 30% private health insurance rebate will start from 1 July 2012. It is likely to catch many people unaware. The question is how will it work in practice? An article by Terry Hayes, Thomson Reuters Senior Tax Writer, published in Issue 15 of the 2012 Thomson Reuters Weekly Tax Bulletin, explains that ...more
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