As we approach 30 June 2013, trustees will need to start thinking about the distribution of trust income for the year ending 30 June 2013. Trustee resolution and timing For beneficiaries to be presently entitled to trust income, trustees must ensure that a valid resolution is made by 30 June 2013 (or an earlier time
Read More…

The ATO has advised medium and large businesses to start preparing for changes to their super obligations now to ensure they are ready for the changes on time. The following reforms will impact businesses from 1 July 2013 onwards: Employers must increase the compulsory super payments they make on behalf of their eligible employees from
Read More…

On Friday 5 April 2013 the Government announced reforms to the superannuation system. Key reforms announced include: Cap on the tax exemption for earnings on assets supporting a super income stream – from 1 July 2014 earnings in super on assets supporting income streams will only be tax free up to $100,000 a year for each
Read More…

Recent changes to the Commonwealth legislation have led to a significant increase in the maximum penalty that the Australian Taxation Office can impose on returns or statements that are lodged late or remain overdue. It is also likely that there will be further increases to the penalties on a regular basis in the future. How
Read More…

In mid 2011 the ATO issued a draft taxation ruling which represented the Commissioner’s preliminary view about the way in which the relevant taxation provisions applied upon the commencement and cessation of a pension or, as it is referred to in the draft ruling, a superannuation income stream. Whilst there are aspects of the draft
Read More…

In 2009 the Government commissioned an independent review of the governance, efficiency, structure and operation of the superannuation system (the Cooper Review). When the final report was received by the Government in June 2010, it contained a number of recommendations applicable to self-managed superannuation funds (SMSFs). A number of these recommendations have been recently given
Read More…

As outlined in Client Alert no 6 – TFN Withholding for Closely held Trusts, the government introduced legislation which applies from 1 July 2010 which requires “closely held trusts” to withhold tax from distributions to beneficiaries where the beneficiary has not provided its tax file number (TFN) to the trust and the trust has not
Read More…

The government has introduced legislation from 1 July 2012 to means test an individual’s entitlement to the rebate on their private health insurance premiums. Prior to 1 July 2012, individuals who had a complying health insurance policy with a registered health insurer were entitled to a minimum tax offset of 30% and a maximum of
Read More…

Further to our previous Client Alerts in relation to important tax issues for Trusts, it appears the Australian Taxation Office (ATO) are continuing to increase their strict compliance approach towards trusts. Trustee Resolutions The ATO has just released a fact sheet in relation to Trustee resolutions (refer to link: http://www.ato.gov.au/General/Trusts/In-detail/Changes/Trustee-resolutions-must-be-made-no-later-than-30-June/. The fact sheet highlights that Trustees
Read More…

The Government recently passed new Trust Legislation which clarifies the taxation treatment of trust income and the manner in which the trust beneficiaries are taxed when made presently entitled to a share of the trust’s net income. The legislation rewrite puts to rest the debate that arose after the ATO released its Practice Statement regarding
Read More…