M&S Business Solutions

Tax Update

Tax Update July 2013

Specific tax rule to prevent dividend washing

The Assistant Treasurer has announced that the Government will introduce a specific tax rule to prevent “dividend washing”.

Individual denied interest deduction

The Administrative Appeals Tribunal (AAT) has denied a taxpayer’s claim for interest deductions incurred in relation to rental properties owned by a trust.

Overseas doctor a tax resident of Australia

A doctor has been unsuccessful before the AAT in arguing that he should be declared a non-resident of Australia for
tax purposes.

Partnership denied GST credits

The AAT has held that a partnership was not carrying on an enterprise and was not entitled to input tax credits it
had claimed.

Division 7A benchmark interest rate

The ATO has advised the benchmark interest rate for the 2013-2014 income year.

Reasonable travel and meal allowance amounts

The ATO has announced the reasonable travel and meal allowance amounts for the 2013-2014 income year.

Specific tax rule to prevent dividend washing

The Assistant Treasurer has announced that the Government will introduce a specific tax rule to prevent
“dividend washing”.

Car depreciation limit

The ATO has announced the car depreciation limit for the 2013-2014 income year.

Key superannuation changes

The Government has made key superannuation changes concerning excess concessional contributions, higher contribution caps for older Australians and extra contributions tax for high income earners.

Tax Update 2 Client Alert June 2013 Budget Edition

Cap on work-related self-education deductions

The Government has proposed a $2,000 cap on tax deduction claims for work-related self-education expenses.

ATO data-matching programs

The ATO has recently announced new data-matching programs targeting employers, student and temporary work
visa holders, and online sellers.

ASIC warns of property spruikers focusing on SMSFs

ASIC has issued an alert on property spruikers who encourage people to set up a self managed superannuation
fund to gear into real property.

Major superannuation reforms announced

The Government has recently made a number of important announcements affecting superannuation.

“Holiday home” included in tax concession test

The Administrative Appeals Tribunal (AAT) has refused a corporate taxpayer’s claim for the small business
CGT concessions.

Small business benchmarks catch out florist

The AAT has affirmed tax assessments issued to a florist that were based on the ATO’s small business
performance benchmarks.

FBT rates and thresholds 2013–2014

The ATO has announced important FBT rates and thresholds for the 2013–2014 FBT year, which commenced
on 1 April 2013.

GST tax invoice information requirements

The ATO has released a Ruling setting out the minimum information requirements for a tax invoice under the
GST law.

We also enclose a special Budget edition outlining key announcements of the May 2013 Federal Budget, and
handy Tax Return Checklists to assist your clients in compiling the necessary information before seeing you
about their tax returns.

The Explanatory Memorandum expands on the articles in the newsletter to assist you with your clients’ queries.

Client Alert is one of Thomson Reuters’ easy content tools that saves you the time in preparing newsletters for
your clients.