ClearLaw Articles

New phoenixing laws put to the test

Sam Kingston, Cara Thompson, Michael Wells - Maddocks Lawyers — Tue, 21 Jun 2022 07:25:40 GMT

The Supreme Court of Victoria is the first Australian court to test creditor-defeating disposition laws designed to defeat illegal phoenix activity. In this latest article, we unpack illegal phoenix activity, summarise the key takeaways from the recent case Re Intellicomms Pty Ltd (in liq) [2022] VSC 228 (Re Intellicomms), and consider implications for directors and business advisors.

Significant Changes to NSW Stamp Duty Regime

Daniel Hui & Tristram Feder, Maddocks Lawyers — Tue, 21 Jun 2022 07:25:40 GMT

The NSW Government has recently passed the State Revenue and Fines Legislation Amendment (Miscellaneous) Act 2022, which has substantially increased the range of transactions and dealings that are subject to duty in NSW. This includes charging duty on transactions taken to be a change in beneficial ownership of dutiable property and mere acknowledgments of existing trusts holding dutiable property. Both changes come less than 18 months after the NSW Government announced plans to phase out stamp duty in favour of a broad-based property tax.

Land and Duty Tax is changing in Tasmania! What do you need to know?

Maddocks Lawyers — Tue, 21 Jun 2022 07:25:40 GMT

The Tasmanian Government is introducing amendments to the Land Tax Act 2000 and Duties Act 2001, to impose a foreign investor land tax surcharge and clarify the scope and operation of the foreign investor duty surcharge.

The proposed changes to the Duties Act 2001 will finally provide guidance to clarify when a SMSF will be treated as a foreign trust. The amendments to the Land Tax Act 2000 will introduce a foreign investor land tax surcharge of 2% to supplement the existing foreign investor duty surcharge.

Updated ATO guidance on unpaid trust entitlements and sub-trust arrangements - Draft Taxation Determination TD 20221/D1

Daniel Hui, Maddocks Lawyers — Fri, 06 May 2022 07:25:40 GMT

The ATO has released Draft Taxation Determination TD 20221/D1 to provide the Commissioner's view on when unpaid present entitlements from trusts to private company beneficiaries will constitute loans for Division 7A purposes, including in the context of sub-trust arrangements. The new view will take effect from 1 July 2022.

The new draft section 100A ruling is here! What do trustees and advisors need to know?

Ari Armstrong, Maddocks Lawyers — Fri, 06 May 2022 07:25:40 GMT

Draft Tax Ruling 2022/D1 (Ruling) has been released which sets out how the ATO will administer section 100A of the Income Tax Assessment Act 1936 on reimbursement agreements.

The Ruling expands on the ATO's interpretation of the three requirements of section 100A and the "ordinary dealings" exception. Broadly a reimbursement agreement relating to a trust arrangement will not be considered to be an "ordinary dealing" if it has certain "contrived features".

NALE quirks to be resolved by new laws

Alisha Wright, Maddocks Lawyers — Fri, 06 May 2022 07:25:40 GMT

The government has announced that it intends to make changes to tax law from 1 July 2022 to ensure that the Non- Arm's Length Expenses (NALE) provisions operate as originally intended (and not as set out in the ATO's LCR 2021/2). There will be a consultation process with industry stakeholders on the intended operation of NALE provisions prior to the government finalising its amendments to the relevant tax law.

This article explains the existing drafting of the law and the issues that arise from it in practice, particularly the concerns arising from the ATO's interpretation of the provisions in LCR 2021/2.

Obviously, the planned changes will need to be monitored and assessed depending on the outcome of the Federal Election on 21 May 2022.

Federal Budget for SMEs: Advising small businesses on skills, training and digital adoption incentives

Ian Murray-Jones, Thomson Reuters — Mon, 11 Apr 2022 07:25:40 GMT

On Tuesday, 29 March 2022, Treasurer Josh Frydenberg handed down the 2022-23 Federal Budget, the last before the looming Federal election. Tax and accounting professionals should in particular observe the skills, training and digital adoption incentives announced in the Budget when advising their clients.

This article is a curated version of the Weekly Tax Bulletin by the Thomson Reuters Tax News Division.

What's in the 2022-23 Federal Budget for big business?

Ian Murray-Jones, Thomson Reuters — Mon, 11 Apr 2022 07:25:40 GMT

Following the 2022-23 Federal Budget being handed down on Tuesday, 29 March 2022, leaders of large organisations in Australia should note in particular two items that may affect their business. These are the broadened scope of the concessional tax treatment of what is termed patent box income and the extended operation of the ATO's Tax Avoidance Taskforce.

This article is a curated version of the Weekly Tax Bulletin by the Thomson Reuters Tax News Division.

First homes, downsizing and the 'work test' - changes to super law in 2022

Sam McKenzie, Maddocks Lawyers — Mon, 11 Apr 2022 07:25:40 GMT

As 30 June fast approaches, it is important to be across recent changes to super law. Legislation which became law on 22 February 2022 made a number of changes to super law, including changes to the first home super saver scheme, downsizer contributions scheme and the 'work test' which applies to super contributions.¹

This article outlines what the changes are and when they will take effect.

It's the contract, the whole contract and nothing but the contract: High Court affirms principal importance of contracts in determining nature of worker relationships

Fri, 11 Mar 2022 06:25:40 GMT

In two long-awaited decisions about the proper characterisation of workers, the High Court has found that whether an individual is an employee or a contractor is to be almost exclusively answered by the terms of the written contract.