Farmers – Keep those records!
The case of Annat v Commissioner of State Revenue [2020] VSC 108 (Annat) serves as a timely reminder for those operating a farm about difficulties faced by farming land owners in continuing to qualify for a primary production land tax exemption and the importance of ensuring that their structuring and record keeping practices are up to scratch.
COVID-19 – changes to foreign investment review regime
On 29 March 2020 the Federal Government announced changes to the foreign investment review regime as Australia continues to deal with the economic implications of COVID-19.
Once the legislation is passed, effective from 29 March 2020, all proposed foreign investment into Australia subject to the Foreign Acquisitions and Takeovers Act 1975 will require approval.
Hold on to your trustee duties – Court of Appeal clarifies dutiable transfer exemption requirements
A recent Court of Appeal (Court) decision has clarified the application of section 35(1)(a) of the Duties Act 2000 (Vic). This section provides an exemption from transfer duty that applies when property is transferred to a trustee to be held solely as trustee of the transferor without any change in the beneficial ownership of the property.
COVID-19: ‘JobKeeper’ support payment
On 30 March 2020 the Federal Government announced further COVID-19 business support in the form of the JobKeeper Payment, which is intended to keep individuals connected with their employer and talks to the ‘hibernation’ of businesses already mentioned by the Prime Minister.
Under the JobKeeper Payment, businesses significantly affected by Coronavirus outbreak will be able to access a $1,500 support payment per employee per fortnight for up to 6 months from the Government to continue paying their employees.
Government and ATO COVID-19 Support Packages Summarised
Both Federal, State and Territory Governments and the Australian Taxation Office (ATO) have adopted measures to assist taxpayers and businesses through the current COVID-19 crisis. We have prepared a summary of the support packages.
ATO assistance available to those affected by ongoing bushfires
The ATO is offering assistance to those individuals and businesses impacted by the recent and ongoing bushfires that have impacted large parts of Australia since late 2019.
Small Business CGT concessions – Eichmann case clarifies active asset test criteria
In FCT v Eichmann [2019] FCA 2155 (Eichmann), the Federal Court overruled the decision in Eichmann v FCT [2019] AATA 162 and held that land used for the storage of equipment and materials that were utilised in the respondent’s building, bricklaying and paving business was not an active asset for the purposes of accessing the small business capital gains tax (CGT) concessions contained in Division 152 of the Income Tax Assessment Act 1997 (Cth) (Act).
SRO ending 'practical approach' to foreign trusts
The Victorian State Revenue Office (SRO) has announced that it will be ending its “practical approach” to whether discretionary trusts trigger the foreign duty surcharge on a purchase
Expats Beware – CGT main resident exemption no longer accessible to foreign tax residents
On 12 December 2019, the controversial Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019 (Bill) was granted royal assent.
Split Asunder! – ATO update guidance on trust splits
On 13 December 2019, the Australian Taxation Office (ATO) released Taxation Determination TD 2019/14 (Determination), which addresses the question of whether, and how, a trust may be split.
Australia’s FinTech Regulatory Sandbox Now Open – Introduction of new Bill puts measures in place to begin easing regulatory burden on FinTech start-ups.
On 15 October 2019, the Treasury Laws Amendment (2018 Measures No 2) Bill 2019 (Bill) passed the House of Representatives and has now been introduced to the Senate.
Planning your business sale: Getting the sale structure right
You have made the decision to sell your company or business. But ask yourself, what is it that you are selling? Is it the shares in the company or is it the underlying assets and/or business? Where is the underlying value in the business that will attract potential buyers?
Third time unlucky: Optical Superstores held liable for payroll tax on patient fees transferred to optometrists under occupancy agreements
In the most recent chapter of the battle between the Victorian State Revenue Office and The Optical Superstore Pty Ltd, the Commissioner of State Revenue has claimed victory, with the Court of Appeal finding on 12 September 2019 that transfers of funds made to optometrists by Optical Superstore were subject to payroll tax under Victorian law.
Whose equipment and expenses?
When considering whether an allied health worker is an employee or a contractor, one factor to consider is in respect of the provision of tools, equipment and other assets required to undertake the work.
Controlling the contractor
The measure of control exercised by one party over the other is an important factor in determining the nature of the relationship between a purported contractor and principal, or employee and employer.
Medical and allied health practices – are you covered for Workers Compensation?
Workers in the allied health industry, such as nurses, doctors and other professionals may find themselves exposed to many different risks and hazards on a day-to-day basis, including lifting and moving patients and equipment; work-related stress; slips, trips and falls; exposure to infectious diseases and occupational violence.
Medical and allied health practices – your tax obligations
The tax obligations on a practice in relation to an employment relationship are often perceived as being significantly more costly (and restrictive) compared to simply engaging a practitioner as an independent contractor. However tread carefully when making this decision, as getting your characterisation of a worker wrong can be even more costly and you may find yourself on the wrong side of the law.
Ownership of medical records – yours, mine or ours?
Upon the termination of a relationship between the practice and practitioner, who will retain the patient records? Where will they be stored? Is the practitioner permitted to access the records, or make a copy?
Goodwill hunting – contractor entitlement to goodwill
Goodwill is the essence of any business, and can often be a business’ most valuable (albeit intangible) asset. The value of goodwill lies in brand identity or recognition, customer networks, positive customer and employee relations, and broadly speaking, reputation.
Superannuation for contractors – come one, come all
Determining whether an individual is an employee or contractor can leave you scratching your head. There is unfortunately little clarification in the context of superannuation entitlements and determining whether payments to a contractor are covered by the superannuation guarantee (SGC) regime further blurs the line between contractor and employee.