No.38: Private Ancillary Fund Update

Background A Private Ancillary Fund (PAF) is a form of charitable trust introduced by the Federal Government in 2001 to encourage greater personal and corporate philanthropy in Australia. A PAF allows individuals, families and businesses to establish their own charitable trust and enjoy full tax deductibility for donations into the PAF. Within a PAF you
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No.37: Non-resident CGT withholding clearance certificates

As outlined in Client Alert No 35 Foreign resident capital gains withholding payments – Implications for Australian resident vendors, the government introduced a 10% non-final withholding tax regime to assist in the collection of CGT from foreign residents. Although this regime has been publicised as targeting foreign resident vendors, it impacts all vendors and purchasers
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No.36: 2016/17 Federal Budget highlights, 4 May 2016

Download the Federal Budget Tax Bulletin 2016-17 The Federal Budget for 2016/17 was handed down by the Treasurer, Mr Scott Morrison, at 7.30 pm (AEST) on 3 May 2016. Highlights The key tax and superannuation highlights from the Budget are summarised below. A detailed Chartered Accountants summary can be found at the link above. Individuals
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No.35: Foreign resident capital gains withholding payments

The government has enacted legislation to introduce a 10% non-final withholding tax on payments made to foreign residents that dispose of certain taxable Australian property. However, Australian resident vendors are also directly affected by these new rules – see below. The new withholding regime will apply to contracts entered into on or after 1 July 2016. Assets
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No.34: Limited Recourse Borrowing Arrangements ATO guidelines

An LRBA is a loan that meets superannuation legislation requirements from a lender to a superannuation fund. The lender can be a bank or a related party of a SMSF ie a loan from a family trust to the family’s SMSF. Such LRBA’s are often on more favourable terms than LRBA’s from banks. The ATO
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No.33: SMSFs – ATO’s warning on dividend stripping arrangements

In 2015 the ATO issued a warning to Self-Managed Superannuation Funds (SMSFs) involved in arrangements to maximise claims for franking credits from private companies. The ATO has now recently published an “Offer to Self-Managed Superannuation Fund (SMSF) trustees to address dividend stripping arrangements.” Background: The original details of the ATO’s warning were included in Taxpayer
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No.32: ATO changes to paper correspondence

The ATO has now recently published an “Offer to Self-Managed Superannuation Fund (SMSF) trustees to address dividend stripping arrangements.” Background: The original details of the ATO’s warning were included in Taxpayer Alert TA 2015/1 – dealing with arrangements where a private company with accumulated profits was channelling franked dividends to a SMSF instead of to
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No.31: Federal Budget Summary 2015

Download the Federal Budget Tax Bulletin 2015-16 The Federal Budget for 2015/16 was handed down by the Treasurer, Mr Joe Hockey, at 7.30 pm (AEST) on 12 May 2015. Highlights The key tax and superannuation highlights from the Budget are summarised below. A detailed Chartered Accountants summary can be found at the link above. Individuals
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No.30: ATO Phone Scams

Some of our clients have been receiving calls at home from people claiming to be ATO officers and accusing our clients of being involved in tax avoidance and advising them to make payments through their Post Office to an account or they will have a warrant issued for their arrest. These have been fraudulent calls
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No.29: Changes to Thin Capitalisation Rules

Legislation has recently been introduced effective for income years commencing on or after 1 July 2014 (the 30 June 2015 tax year for 30 June taxpayers) which amend the thin capitalisation rules such that: the maximum statutory debt limit (safe harbour debt limit) has been reduced from 3:1 to 1.5:1 (on a debt-to-equity basis) for
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