ATO issues GST reminder

The Australian Taxation Office has issued a reminder to SMSF trustees that they have a GST withholding obligation if they purchase new residential property. They need to make sure they have done all the paperwork. The ATO says purchasers who…

DRP vs DSSP

Q: I have recently invested in Australian Foundation Investment Company (AFIC) and have encountered an unusual choice between a dividend reinvestment plan (DRP) and a dividend substitution share plan (DSSP). What is the difference between the two and how do…

Kavanagh

Parliament has passed a controversial bill that removes the entitlement to the main residence capital gains tax exemption for foreign residents and, arguably, denies expatriates a legitimate tax exemption Despite taking the bill off the table last year to review…

Q&A

Q: We are about to leave Sydney for a month on an overseas trip and have been thinking about renting the house while we are away. We have a four-bedroom family home and, apart from occasional guests, three of the…

Vacant land tax change

Q: I own a vacant block which I am hoping subdivide in a few years. A tax amendment will mean no tax deductions for some holders of vacant land, but I understand there were some amendments to the original bill,…

AAT case sheds light on NALI rules

The question of whether the payment of dividends to a self-managed super fund from a private company was a non-arm’s length transaction involved more than a consideration of the relative amount of dividends paid. It also involved a consideration of…

Testamentary trust tax rules tightened

The tax treatment of testamentary trusts is being tightened, to ensure that minors who are trust beneficiaries do not receive tax concessions they are not entitled to. Last week, the Government introduced draft legislation for consultation. Generally, tax law imposes…

ATO increasing tax return checks

Q: I saw that the tax office is planning to review every tax return, not just a sample, looking for incorrect claims. What will it be targeting? A: The tax office says that each year it contacts about two million…

Tax time scam alert

The Australian Cyber Security Centre (ACSC) Stay Smart Online site has issued a warning that it is seeing a surge in scammers impersonating myGov and the Australian Taxation Office and asking for money or personal details. The ACSC says scams…

TPB warns on unregistered tax agents

The Tax Practitioners Board has issued a warning to taxpayers about the risk of using unregistered tax agents. It says there have been a number of cases of agents posing as legitimate registered tax practitioners who lodge returns on behalf…