Debt deduction creation rules – coming to a private group near you

Debt deduction creation rules – coming to a private group near you

While the thin capitalisation rules have traditionally had limited application to many private groups, the new debt deduction creation rules (DDCR) that apply from 1 July 2024 are a clear creep into that space.

Sladen Legal’s Tax Practice Recognised In Doyles Guide Victoria 2024

Sladen Legal’s Tax Practice Recognised In Doyles Guide Victoria 2024

Sladen Legal has been recognised as a Third Tier Leading Tax Law Firm in Victoria for 2024 by Doyle's Guide. Doyle's Guide is a respected and independent directory that highlights Australia’s top firms and legal professionals.

Sladen Snippet - PBR determines that death benefit to a spouse’s estate is not tax free

Sladen Snippet - PBR determines that death benefit to a spouse’s estate is not tax free

Is the payment of a death benefit to a spouse’s estate tax free? The Australian Taxation Office (ATO) has released a Private Binding Ruling 1052273158502 (PBR) in which it determined that it was not under section 302-10(2) of the Income Tax Assessment Act 1997 (ITAA 97).

Sladen Snippet - Private Wealth Advisor Program: advisors beware – you are on the ATO’s watch list

Sladen Snippet - Private Wealth Advisor Program: advisors beware – you are on the ATO’s watch list

Over the course of the last year, the Australian Taxation Office (ATO) has repeatedly indicated in various forums that advisors are in the ATO’s sights.

Rollovers - practical strategy and compliance insights

Rollovers - practical strategy and compliance insights

In the current economic landscape, business owners may be considering a restructure, merger, or demerger to adapt, survive, or enable growth. A change in the structure of a business typically involves either the transfer of ownership interests in the entire business or of specific assets of the business. The disposal of an ownership interest in a business or its assets may trigger tax consequences for the business or business owners on capital or revenue account.

Uber not liable for payroll tax – New South Wales Supreme Court decision

Uber not liable for payroll tax – New South Wales Supreme Court decision

The New South Wales Supreme Court has that Uber is not liable for payroll tax on payments made to drivers in Uber Australia Pty Ltd v Chief Commissioner of State Revenue [2024] NSWSC 1124.

Sladen Snippet - New Victorian Short Stay Levy Bill 2024 introduced into Parliament

Sladen Snippet - New Victorian Short Stay Levy Bill 2024 introduced into Parliament

A new tax will be imposed on both short stay service platforms and others who offer direct bookings of short stay accommodation. The levy will apply to stays less than 28 days but will exclude a homeowner’s principal place of residence or commercial residential premises (i.e. a hotel, motel etc).

Sladen Snippet - PCG 2024/D2 - PSI and Part IVA

Sladen Snippet - PCG 2024/D2 - PSI and Part IVA

On 28 August 2024, the Australian Taxation Office (ATO) published Draft Practical Compliance Guideline PCG 2024/D2 (Draft PCG) on Personal services businesses and Part IVA of the Income Tax Assessment Act 1936.

Imbree Appeal - NSW taxpayer denied stamp duty exemption for transfer from SMSF to member

Imbree Appeal - NSW taxpayer denied stamp duty exemption for transfer from SMSF to member

A taxpayer has lost an appeal in New South Wales on the ground that a potential exemption did not apply to agreements to transfer. This has wide implications for other transactions.

Oliver Hume Appeal - Victorian Landholder Duty Applies on Capital Raising

Oliver Hume Appeal - Victorian Landholder Duty Applies on Capital Raising

On 8 August 2024, the Victorian Court of Appeal in Oliver Hume Property Funds (Broad Gully Rd) Diamond Creek Pty Ltd v Commissioner of State Revenue [2024] VSCA 175 confirmed that landholder duty applied on the separate acquisition of shares by 18 investors under a single capital raising.  The Court held that that capital raising amounted to substantially one arrangement and therefore was a relevant acquisition for landholder duty purposes.

Sladen Snippet: Armidale Jockey Club - Racing clubs “clearance house” liable to pay superannuation guarantee to jockeys

Sladen Snippet: Armidale Jockey Club - Racing clubs “clearance house” liable to pay superannuation guarantee to jockeys

This Decision of the Administrative Appeals Tribunal (AAT) is a series of decisions against five jockey racing clubs brought by the Australian Taxation Office (ATO) regarding whether the racing clubs must pay super contributions on behalf of jockeys under the Superannuation Guarantee (Administration) Act 1992 (SG Act).

Section 99B – TD 2024/D2 – you can’t always get what you need

Section 99B – TD 2024/D2 – you can’t always get what you need

On 31 July 2024, the ATO released draft TD 2024/D2 and draft PCG 2024/D1 on aspects of section 99B.

While we welcome the ATO guidance on section 99B, it is not what taxpayers and advisors want– section 99B requires legislative amendment. However, is the draft ATO guidance what advisor’s need?

Tao - Becoming a sole director of a corporate trustee triggers landholder duty despite no acquisition of units in a unit trust

Tao - Becoming a sole director of a corporate trustee triggers landholder duty despite no acquisition of units in a unit trust

The VCAT decision of Tao v Commissioner of State Revenue (Review and Regulation) [2024] VCAT 637 has confirmed the breadth of the Victorian landholder duty change of control provisions - despite no acquisition of units in a unit trust.

Session 4: Trusts and small business CGT concessions – Oil and water or peas and carrots?

Session 4: Trusts and small business CGT concessions – Oil and water or peas and carrots?

The small business capital gains tax (CGT) concessions (Concessions) in Division 152 of the Income Tax Assessment Act 1997 (ITAA 97) offer significant opportunities to reduce or eliminate tax levied on capital gains.1 However, despite a recent judicial pronouncement that the Concessions should be interpreted beneficially,2 the legislative conditions for relief are intricate and complex.

Sladen Snippet - Federal Court affirms Trustees in Bankruptcy are liable for capital gains tax on property dispositions

Sladen Snippet - Federal Court affirms Trustees in Bankruptcy are liable for capital gains tax on property dispositions

The Federal Court has confirmed that a liability to pay Capital Gains Tax applies to trustees in bankruptcy in respect of capital gains derived in their capacity as trustee.

Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

On 24 May 2024 the New South Wales Supreme Court held that landholder duty applied to value of a water carrying pipeline in Conexa Sydney Holdings Pty Ltd v Chief Commissioner of State Revenue (2024] NSWSC 628.

New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

The New South Wales State Budget 2024-25 is a mixed bag, containing an increase to foreign surcharges, but also payroll tax relief for GP contractors. The tax-free threshold for land tax will also remain the same, so more landowners will be subject to land tax as property values rise.

Godolphin case: High Court decision considers the “dominant use” test under the NSW land tax primary production exemption

Godolphin case: High Court decision considers the “dominant use” test under the NSW land tax primary production exemption

The High Court has dismissed an appeal by Godolphin Australia Pty Ltd (Godolphin) and confirmed that it cannot claim the primary production land tax exemption, as it was unable to show that the “dominant use” of its properties was for primary production where it also had substantial horseracing activities.  The decision illustrates the issues that can arise when primary production land is used as part of business models that include other interrelated activities.