Has the Government wound back pension drawdown relief too soon?
I think the short answer is yes. The Government’s moves to force people to withdraw more from their account based pensions and annuities by increasing the minimum drawdown percentage from 50% to 75% with effect from 1 July 2011 purports to take account of the rise in the markets since the GFC. But that rise ...more
Tax simplification as far away as ever!
Tax simplification – 2 words that ring in the ears of taxpayers and tax agents every time they are faced with interpreting or complying with the tax laws. It’s the same the world over. Australia is no exception – it’s just that our tax laws seem to need more simplifying than most. Take the 2010 ...more
Div 7A: will the nightmare ever end?
Probably not! Or at least not soon! Division 7A has been causing practitioners headaches since (and even before) the day it was enacted. The provisions have been amended several times and we’ve had rulings on them. Most recently, a controversial ATO ruling (Draft TR 2009/D8) threatens more problems. It gives the ATO’s views on the ...more
The Federal Budget – the chicken or the egg?
What comes first – the chicken or the egg? The Budget or the Henry tax review report? According to the Treasurer, it will be the Henry review first, then the Budget. Yes, there will be a Budget this year – and it’s not far away. But what will it bring? The Federal Government potentially finds ...more
Message for Dr Henry: Why tax every dollar of interest income?
Australia is good at taxing stuff. All sorts of stuff, like interest income, dividend income, capital gains, profits, etc. But the way we tax stuff, and how much we tax it, is often a bone of contention. Take savings. As a nation, we have regularly been scolded for not being good savers, and why would ...more
Perhaps the Henry Tax Report is near!
It’s 9 April 2010, and the public release by the Government of the Henry tax system review must be getting nearer, mustn’t it! It’s all a bit like Christmas eve with the anticipation in everyone’s eyes – to paraphrase – … and all through the house, not a thing was stirring, not even the Henry ...more
CGT still too complex for SMEs
The small business CGT exemptions can reduce or eliminate a capital gain made on a CGT asset that has been used in a business. The 4 exemptions or concessions available are the 15-year exemption, the 50% reduction, the retirement exemption, and the roll-over concession. The Tax Office is concerned that taxpayers are making mistakes in ...more
Who’s got my tax information?
You might be surprised! We all know about Big Brother and the use to which tax information is now put. The ATO’s data-matching activities tap all kinds of sources, but the information flows the other way as well ie from the Tax Office. The ATO jealously guards the tax information it receives, although it does ...more
In-house tax advisers and the new tax agent regime
The press has recently carried reports of concerns among in-house tax advisers about how the provisions of the new Tax Agent Services Regime might affect them. The new Tax Practitioners Board has been looking at this issue. It said suggestions had been made that there may be an anomaly in the case of a wholly ...more
Should accountants be able to give broad advice about super?
Currently, under the Corporations Law, accountants are not required to be licensed under the financial services regime (ie they do not need an Australian financial services licence – AFSL) where they advise on the establishment, structure or operations of a super fund, including making recommendations that a person acquire or dispose of a self-managed super ...more
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