Author name: trovegroupaus

The government has released a consultation paper to canvass options to amend the non-arm’s length income (NALI) provisions that will apply differently to SMSFs/small APRA funds and large APRA-regulated funds.

The 31st March spells the end of the FBT year and many employers will either have lodgement obligations and/or will be reliant on employee provided declarations to reduce or remove their FBT liability.

On 28th February 2023 the Treasurer issued a media release, together with a fact sheet (refer link below) detailing proposed changes to the taxation of superannuation balances in excess of $3Million.

The Full Court of the Federal Court has handed down its long-awaited decision on the matter of Commissioner of Taxation v Guardian AIT Pty Ltd ATF Australian Investment Trust [2023] FCAFC 3 (“Guardian Case”).

The ATO is currently running a campaign cracking down on super schemes increasingly used by promoters to inappropriately channel money through SMSFs or provide an unfair tax advantage. Some of the schemes highlighted by the ATO would have previously fallen in the tax planning sphere rather than the tax avoidance sphere, but as signalled in the 2022-23 Budget, the government was seeking to commence Budget repair work via tax integrity measures.

Personal services income (or PSI) is income (whether ordinary income or statutory income) that is earned mainly as a reward for the personal efforts or skills of an individual (ie more than 50% of the income must be a reward for the personal efforts or skills of an individual). PSI includes income from the personal efforts or skills of an individual that is earned through a PSE.

With the expiration of the previous fixed rate method and the shortcut method for calculating the deduction for working from home (WFH) expenses, the ATO has released PCG 2023/1 on the new revised fixed rate method (“RFRM”) for calculating work-related additional running expenses that will replace both these methods from 1 July 2022.

After a tumultuous 2022 year, 2023 is finally here, a new year means changes and the SMSF space is no different. If you’re thinking of starting a new SMSF, the ATO has now changed the registration process which removes the ability to add the SMSF bank account details to the online and paper application for an ABN registration of an SMSF.

The government has announced that it will abolish the Administrative Appeals Tribunal (AAT) and replace it with a new federal administrative review body. According to Attorney-General, the Hon Mark Dreyfus, the AAT’s dysfunction has had a very real cost to the tens of thousands of people who rely on it each year to independently review government decisions.

Foreign-incorporated companies will now have more time to organise their governance arrangements under a recent update issued to Practice Compliance Guideline PCG 2018/9. The issue relates to foreign incorporated companies that treated themselves as foreign residents under the withdrawn Taxation Ruling TR 2004/15 but qualify as Australian residents under the replacement Taxation Ruling TR 2018/5.