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With 2023 in full swing, the ATO is looking to finalise a number of FBT-related issues currently under consultation. For businesses, the outcome of these consultations and subsequent issue of draft rulings or guidelines may affect the applicability of FBT in certain circumstances, as well as the calculation of FBT benefits.
Money never sleeps, as the old quote goes, but it could apply equally well to scammers. As most people have let their guard down and are still recovering from their holiday excesses, scammers are positioning themselves to strike at this particularly vulnerable time. Among the usual parade of swindles, the government has warned of a particularly insidious new ATO impersonation scam on social media.
After a tumultuous 2022 year, 2023 is finally here, a new year means changes and the SMSF space is no different. If you’re thinking of starting a new SMSF, the ATO has now changed the registration process which removes the ability to add the SMSF bank account details to the online and paper application for an ABN registration of an SMSF.
In a recent address, the Assistant Treasurer and Minister for Financial Services, Stephen Jones, outlined the changes the government will be pursuing in terms of superannuation. From its beginnings in 1992, superannuation collectively has become a juggernaut and has grown to encompass over $3.3 trillion in assets held by an estimated 16m Australians. That figure makes Australian superannuation the world’s third largest pension pool.
First home buyers in NSW could soon have the choice between paying an annual property tax instead of stamp duty if a Bill currently before NSW Parliament passes. As the name suggests, the First Home Buyer Choice scheme is only available to individual first home buyers over 18 years of age who have not previously owned residential land in Australia. For individuals with a spouse, it is also a requirement that the spouse has not at any time owned residential land in Australia either solely or with another person.
The tax legislation contains special rules about personal services income (PSI). The PSI rules are aimed at improving the integrity of, and equity in, the tax system by ensuring that individuals cannot reduce or defer their income tax by alienating or splitting their PSI through the use of interposed companies, partnerships or trusts. An interposed entity is called a personal services entity (PSE).
Along with the Financial Accountability Regime (FAR) to extend the standards of conduct in major changes to the finance sector, the government has introduced Bills to implement the Compensation Scheme of Last Resort (CSLR) to enact the recommendations from the Financial Services Royal Commission.
In a bid to support pensioners and in conjunction with the announcement to reduce the eligibility age for downsizer super contributions, the government has introduced a measure to extend the existing assets test exemption under social security for principal home sale proceeds which a person intends to use to purchase a new principal home.
The Australian Securities and Investments Commission (ASIC) is the body responsible for overseeing the operation of Australia’s financial services dispute resolution framework, including the internal dispute resolution (IDR) systems of superannuation trustees and other financial firms. This, together with external dispute resolution systems of the Australian Financial Complaints Authority (AFCA) forms the key consumer protection mechanism to ensure all complaints are resolved in a fair and timely manner.
When it comes to compliance by SMSF trustees with super laws, the ATO’s main focus is on encouraging trustees to comply with the super laws. However, there are occasions when stronger responses are required.
Trustees of SMSFs should be aware that COVID relief measures that were previously in place have now ended. The relief measures applied for the 2019-20, 2020-21 and 2021-22 years but expired on 30 June 2022. As such, the ATO now expects SMSF trustees to comply with all their obligations under the tax and super laws previously covered by the relief measures.
Businesses that have made payments to contractors for certain services in the 2021-22 income year are required to lodge a Taxable Payments Annual Report (TPAR) by 28 August 2022. This includes businesses that made payments to contractors or subcontractors for building and construction services, cleaning services, courier services, road freight services, IT services, and security, investigation or surveillance services.