October 2019 Tax Round Up - SG amnesty resurrected
by Knowledge Shop Editor, on 30/09/19 22:30
A huge month with a raft of superannuation changes including the resurrection of the SG amnesty, and a Bill enacting a series of 2018-19 Budget announcements.
In addition, two new determinations from the ATO will be a concern to any clients that are non-resident beneficiaries of Australian discretionary trusts. The ATO's view is that non-resident beneficiaries can be taxed in Australia on gains relating to foreign assets, which would not have been taxed had they been made by the beneficiary directly.
Join Michael Carruthers (Tax Director, Knowledge Shop), Garth McNally (National Training & Education Director, Merit Wealth) and Lisa Armstrong (MD, Knowledge Shop), for just the juicy bits of change for accountants and advisers:
- Resurrection of the Superannuation Guarantee Amnesty with an additional component penalising employers that do not take advantage of the amnesty - Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019.
- The Bill introducing a range of 2018-19 Budget measures addressing:
- The ability for a taxpayer with multiple employers to opt-out of the Superannuation Guarantee (SG) system.
- Non arm’s-length income (NALI) within a super fund, with specific reference to non arm’s-length expenses and non arm’s-length asset acquisitions, and the requirement to include the outstanding balance of a limited recourse borrowing arrangement (LRBA) when calculating the total super balance of an individual.
- The requirement to include the outstanding balance of an LRBA when calculating the total super balance (TSB) of an individual.
- Capital gains derived by trusts with non-resident beneficiaries. Two new draft determinations deal with the complex and technical issues that arise when resident discretionary trusts make distributions to non-resident beneficiaries and this relates to capital gains. The ATO’s position will not be a welcome one as non-resident beneficiaries can be taxed in Australia on gains relating to foreign assets, which would not have been taxed had they been made by the beneficiary directly.
- Taxi for FBT purposes - an exposure draft that includes a proposed change to the FBT Act for the taxi travel exemption that changes the definition to remove the requirement that the vehicle be registered as a taxi.