In an exciting turn of events, the corridors of the New South Wales Parliament have witnessed a transformative development with the passage of the Revenue, Fines, and Other Legislation Amendment Bill 2023 (NSW). This landmark legislation carries pioneering amendments that are poised to revolutionize the taxation landscape and redefine how breaches of confidentiality are handled. Let's delve into the essential highlights of this momentous legislative stride:

In a recent legal precedent, the Administrative Appeals Tribunal (AAT) made a momentous ruling concerning the taxation of delayed bonus payments. This ruling brings to light the intricate timing intricacies that dictate the taxability of such payments, especially when a taxpayer's residency status undergoes a shift between entitlement and reception. In this blog post, we will delve into the particulars of the case, examine the arguments put forth, and elucidate the outcome of the AAT's verdict.

Managing a self-managed superannuation fund (SMSF) in Australia involves grappling with the intricate and evolving taxation and superannuation landscape. One pivotal determinant of SMSF compliance is passing the residency test – a litmus test for eligibility to access favorable tax rates. In this article, we dive into the nuances of the SMSF residency test and its implications, shedding light on its complexity and impact on SMSF trustees.

The Western Australian housing market is set to experience a significant boost as the state government introduces the Duties Amendment (Off-the-Plan Concession and Foreign Persons Exemptions) Bill 2023. This legislation aims to enhance housing supply, incentivize off-the-plan property purchases, and promote urban infill. Here's an overview of what the Bill entails and how it could impact potential homebuyers.

The Australian Taxation Office (ATO) has announced that it's time for taxpayers with straightforward financial situations to get ready to file their annual income tax returns. In a recent media release, Assistant Commissioner Tim Loh highlighted the ease with which taxpayers can now lodge their returns, thanks to the pre-filled information provided by the ATO. Whether individuals choose to work with registered tax agents or file their returns via myTax, pre-filled data will be automatically available for a smoother filing process.

The Australian Treasury has recently released a draft legislation proposing amendments to the Goods and Services Tax (GST) input tax credits to ensure that the tax law operates as intended. These proposed changes aim to address certain complexities and provide greater clarity for taxpayers. In this blog post, we will delve into the key aspects of the proposed amendments and their implications for businesses.

In a bid to modernize the individual tax residency rules, the Australian Treasury is seeking public input on a proposed framework based on recommendations from the Board of Taxation's 2019 report. This initiative aims to establish a more robust and contemporary system that aligns with the evolving needs and circumstances of taxpayers. The consultation offers a unique opportunity to contribute to shaping the future of tax residency regulations. In this blog post, we will explore the proposed model, its key features, and the aspects for which Treasury seeks public input.

When it comes to land tax exemptions in New South Wales (NSW), there are specific provisions that cater to the needs of approved childcare and education services. These exemptions play a crucial role in encouraging and supporting the provision of quality education and care for children. In a recent case, Mourched v Chief Commissioner of State Revenue (NSW) 2023 ATC ¶20-873; [2023] NSWSC 668, the Supreme Court shed light on the exemptions applicable to land used for childcare services, including ancillary services. Let's delve deeper into the details of this case and its implications.

Under section 10(1)(u) of the Land Tax Management Act 1956 (NSW), land used solely for the purpose of providing childcare services may be eligible for exemption from land tax. To qualify, the land must serve as the place where children are educated or cared for by the service. The case in question revolved around the interpretation and application of this exemption.

In an effort to promote transparency and fairness in government procurement processes, a new measure has been introduced that requires tenderers for large government contracts to disclose their country of tax residency. Effective from 1st July 2023, this measure, which aligns with the Buy Australia Plan, aims to create a level playing field and ensure open competition.This will provide an overview of the residency disclosure requirement and its key implications for businesses tendering for Commonwealth Government contracts valued at over $200,000.

1. Record-keeping requirements for working-from-home deductions have changed. Clients must maintain accurate records regardless of the deduction method chosen.

2. The ATO has introduced a streamlined lodgment deferral function in Online Services for Agents. This new feature allows us to request deferrals conveniently and should be utilized once the old process is phased out.

3. Understanding why tax refunds may be lower or why clients might receive unexpected tax bills is crucial. Factors such as the end of the Low and Middle-Income Tax Offset (LMITO) and offsetting credits or refunds against other debts could affect the final amount.

4. Reporting capital gains, losses, and main residence exemptions for property transactions is essential. This includes situations where clients used their homes for income-generating activities or when applying the 6-year rule for main residence exemptions. Pre-filling reports in Online Services for Agents can assist in this reporting process.

5. Clients should ensure that all sources of income, including additional employment, government payments, rental income, and income from partnerships, trusts, and units, are declared accurately. If clients have a side hustle, determining if they are classified as running a business and fulfilling associated tax obligations is vital.

By discussing these topics with us, clients can effectively navigate the complexities of Tax Time 2023 and ensure accurate and compliant tax reporting.

Q: The family trust receives an $80,000 unfranked dividend from Company A at the end of the year. The trustee of the trust is a company. Can all the income of the family trust, minus any expenses, be directed to one beneficiary who happens to be the director of both the trustee company and Company A?

Q: The ATO says bottled water is GST-free, and fruit/vegetable juices are GST-free if they're over 90% pure. Peggy sells bottled juices in her café, where most customers dine in, but some also take away drinks. She wants to know if she should charge GST on bottled drinks.

Q: M company, jointly owned by Australian and UK shareholders, does similar business in both countries under the same brand. M company, based in Australia, hires a digital marketing agency for advertising design. It then passes on some of the design costs to the UK company. Does the UK company need to pay GST for the design services?