tax law

  • SMSFs, new ATO penalty regime and family law

    From 1 July 2014, a new regime applies to potential penalties that may be imposed by the Australian Taxation Office (ATO) against trustees of Self-Managed Superannuation Funds (SMSF).  SMSFs in Australia have increased over time from approximately 375,000 in June 2008 to 510,000 in June 2013 (see, Explanatory Memorandum to the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Bill 2014).

  • Tax office amnesty on foreign income declarations

    On 27 March 2014, the Commissioner of Taxation announced ‘Project DO IT’, an initiative within the Australian Taxation Office (ATO) to allow eligible taxpayers to come forward and voluntarily disclose unreported foreign income and assets.  From the ATO’s website, this initiative covers amounts not reported, or reported incorrectly, in income tax returns, including:

  • Repeal of the 'Carbon Tax'

    On 17 July 2014, as promised by the Coalition prior to winning the last Federal election, the Senate passed carbon pricing repeal legislation with effect as from 1 July 2014.  The legislation passed by the Senate is as follows:

  • Personal liability for company taxes

    Question: When can an individual be personally liable for a company’s taxation liabilities?

    Answer: If they are deemed liable by reason of being a director of that company at a particular time. 

    The director penalty provisions under the Taxation Administration Act 1953 are a powerful tool in the Australian Taxation Office’s (ATO) arsenal for recovery of certain outstanding company tax debts. 

  • Flood Levy

    Taxpayers should note that taxable income over $50,000 will be subject to a flood levy. The taxable incomes between $50,000 and $99,999 will be subject to a flood levy of 0.5% on income over $50,000 and those whose taxable income is more than $100,000 will be subject to a levy of $250 plus 1% on income over $100,000. As an example if your income is $80,000 your flood levy will be $150.00 ($80,000-$50,000 x 0.5%). Some exemptions will apply.
  • ANTSIS Study Expenses

    Following a recent High Court relating to the deductibility of education expenses against Youth allowance income the Australian Taxation Office is amending Tax Assessments for the years ending 30th of June 2007, 2008, 2009 and 2010 to allow for an automatic deduction of $550 for those in receipt of Youth Allowance, Austudy and ABSTUDY income. 

  • Merger of AMP Limited and AXA Asia Pacific Holdings Ltd

    On 30 March 2011, AXA merged with AMP.

    AXA ordinary shareholders received 0.73 fully-paid ordinary shares in AMP and $2.5464 cash for each ordinary share they held on 16 March 2011.

    AXA also paid a final unfranked dividend of 9.25 cents per ordinary share.

    The market value of each AMP share received by AXA shareholders is $5.32.

    Are there any tax consequences for me?


    There are three consequences:

  • Special Disability Trusts (SDT) – Tax Treatment Issues

    Since 2006, families have been able to establish an SDT to provide for the current and future care and accommodation needs of a family member with severe disability (the "principal beneficiary"). SDTs attract social security means test concessions for the eligible contributors and the principal beneficiary.

  • CGT Consequences for an Estate

    Many people fail to consider the Capital Gains Tax (CGT) consequences that can arise after their death, some of which can have a massive impact on the estate itself.
  • Tax implications in BHP Share Buy Back

    Shareholders with BHP shares will be receiving information inviting them to take part in the share buy back.