COVID-19 – how the ATO has offered to help
The ATO has set out ways it can help taxpayers deal with COVID-19. This is not to be confused with the Federal Government’s Economic Response to Coronavirus.
23 March 2020
The ATO has set out ways it can help taxpayers deal with COVID-19. This is not to be confused with the Federal Government’s Economic Response to Coronavirus.
On 6 March 2020, the superannuation guarantee amnesty Bill finally became law.
Income which is non-arm’s length income or NALI is taxed in an SMSF at the top marginal tax rate (rather than the concessional rates that usually apply to income of SMSFs).
This could get ugly. For tax periods starting from 1 April 2020, the Commissioner will be able to pursue directors personally for their company’s outstanding GST liabilities.
It has become increasingly common for documents to be signed electronically.
The 2017 Budget saw the announcement of the ‘NALE’ changes to the non-arm’s length income (NALI) rules effective from 1 July 2018.
One long outstanding measure that affects members of SMSFs has been including the outstanding borrowings of an SMSF in members’ total superannuation balances. The legislation implementing this has now been passed.
The ATO has been targeting lump sum payments received by medical practitioners. A recent decision of the Federal Court means that ATO audit activity is likely to continue in certain cases.
Discretionary trusts that own ‘residential land’ in New South Wales or hold an ownership interest in a company or unit trust that owns residential land in New South Wales must amend their trust deeds to exclude foreign persons as beneficiaries before midnight on 31 December 2019, otherwise foreign land tax and duty surcharges may apply.
AUSTRAC collects and shares financial data with the ATO. The ATO uses this data to identify individuals who may not be declaring all of their income. Taxpayers should expect the ATO to review funds coming into Australia – regardless of the amounts – and be prepared to explain the source of those funds.
Generally, an attorney appointed under a general or enduring power of attorney cannot enter into a conflict of interest transaction.
The New South Wales Supreme Court has confirmed how trusteeship of an SMSF works where a member and trustee loses capacity and then dies.