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September 2018
SUPER SECTOR MUST ADDRESS TRUST DEFICIT |
In a speech to the Financial Services Council Summit on 26 July 2018, Australian Securities and Investments Commission (ASIC) Chair James Shipton said the superannuation sector must restore the "trust deficit" and be more mindful of the responsibilities that come with being the custodians of other people's money. Mr Shipton said the super industry has been exploiting opportunities to make money from members, citing examples of conduct that could lead to poor member outcomes, including poor advice, treatment of customers and defensiveness when it came to transparency about fund operations. |
CALL TO BOOST INSTANT ASSET WRITE-OFF TO $100,000 |
The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has called for the $20,000 instant asset write-off for small businesses to be embedded in legislation and extended up to $100,000 every three years. Ms Carnell said increasing the instant asset write-off to $100,000 every three years would enable small businesses with higher costs for key equipment to participate. |
TAX RETURN REQUIRED FOR EXCESS SUPER NON-CONCESSIONAL CONTRIBUTIONS |
The ATO has reminded taxpayers that they need to lodge a tax return for any financial year in which they exceed their non-concessional contributions cap, and that making excess contributions may lead to having to pay extra tax. |
APRA'S RESPONSE TO PRODUCTIVITY COMMISSION DRAFT REPORT |
The Australian Prudential Regulation Authority (APRA) has released its submission in response to the Productivity Commission's draft report on superannuation efficiency and competitiveness. APRA agreed with a number of the Commission's findings and the direction of many, but not all, of the recommendations in the draft report. |
PROTECTING SUPER BILL: SENATE COMMITTEE REPORT |
The Senate Economics Legislation Committee has released its report on the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018, and has recommended that the Bill be passed.
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FIRST HOME SUPER SAVER SCHEME: ATO GUIDANCE |
Law Companion Ruling LCR 2018/5, issued by the ATO on 15 August 2018, provides guidance on the First Home Super Saver (FHSS) scheme. |
TIP: The FHSS scheme is designed to help eligible first-home buyers by allowing them to make voluntary superannuation contributions and then withdraw those amounts and associated earnings to use when purchasing a first home. |
People who meet the eligibility criteria can access the scheme by applying to the ATO for a determination and a release authority. They must make superannuation contributions that are eligible for release under the scheme, namely voluntary concessional or non-concessional contributions that come within the relevant contributions cap. There are limits on the amounts withdrawn ($15,000 per financial year and $30,000 in total, subject to the contribution caps). |
ATO TARGETING CAR SHARING PLATFORMS |
The ATO has announced it will turn its attention to anyone earning income through car sharing platforms. ATO Assistant Commissioner Kath Anderson said there is evidence that some people who are undertaking sharing activities using third-party services such as Car Next Door, Carhood and DriveMyCar Rentals might not understand the taxation implications involved. |
TIP: You must declare in your tax return any income you receive, and you cannot avoid tax by calling the car sharing a hobby. |
While any car sharing expenses you claim as tax deductions must relate directly to the renting, hiring or sharing of your car, the Assistant Commissioner has said that most car sharers can legitimately claim deductions for costs like platform membership fees, availability fees, cleaning fees and car running expenses. |
DELAY IN EXTENDING REPORTABLE PAYMENTS TO COURIER AND CLEANING SERVICES |
The legislative logjam in Federal Parliament is affecting the implementation of a wide range of tax measures, and the ATO is having to implement some practical work-arounds. |
GST: SUPPLIES OF REAL PROPERTY CONNECTED WITH AUSTRALIA |
GST Ruling GSTR 2018/1, issued on 22 August 2018, sets out the ATO's view on when supplies of real property are connected with the indirect tax zone (Australia). |
Important: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval. |