Birchstone Brief for the week ended 10 December 2021

ATO Update

ATO guidance: COVID-19 vaccine incentives

The ATO has issued a fact sheet confirming that there will be no special or concessionary taxation treatment for COVID-19 vaccine incentives given by employers.
This means that employers who provide incentives or rewards to employees for receiving COVID-19 vaccinations may have associated income tax, superannuation or FBT obligations.

GST Determination finalised

The ATO has issued GST Determination GSTD 2021/2, which sets out the circumstances in which the supply of an adjustable bed, pressure management mattress, pressure management overlay and associated spare parts will be GST-free.

This Determination finalises the Draft Determination GSTD 2021/D1 (covered in the Birchstone Brief for the week ended 23 April).

Rulings

The ATO has issued the following rulings:

  • CR 2021/87 – Wesfarmers Limited – Return of capital;
  • CR 2021/88 – Thales Australia Ltd – Early retirement scheme 2021;
  • CR 2021/89 – NSW Police Force – Optional disengagement scheme;
  • CR 2021/90 – Victorian Department of Transport – Early retirement scheme 2021-2022;
  • CR 2021/91 – Victorian Department of Environment, Land, Water and Planning – Early retirement scheme 2021-2022;
  • CR 2021/92 – Victorian Department of Justice and Community Safety – Early retirement scheme 2021-2023;
  • CR 2021/93 – Encounter Resources Ltd – Demerger of Hamelin Gold Ltd;
  • CR 2021/94 – Nufarm Ltd – Non-executive directors share rights plan;
  • CR 2021/95 – EROAD Australia Pty Ltd – Fuel Tax Credits Solution; and
  • CR 2021/96 – Arnott’s Biscuits Ltd – Early retirement scheme 2021.

State Taxes

Duties (ACT): Landholder duty

The ACT Revenue Office has released Circular LHD002, which provides updated guidance on how landholder duty is calculated.

Other News

Decision Impact Statement: Global Citizen

The ACNC has issued a Decision Impact Statement following the decision in Global Citizen Ltd v Commissioner of ACNC [2021] AATA 3313 (first covered in the Birchstone Brief for the week ended 22 October 2021).
In that case, the AAT held that a not-for-profit entity was entitled to public benevolent institution (PBI) status as its educational and advocacy activities were only incidental to its main purpose of relieving poverty.
In its Decision Impact Statement, the ACNC states that the decision does not change its view of ‘purpose’ as set out in paragraph 5.5 of the Commissioner’s Interpretation Statement: Public Benevolent Institutions.

Cases

Appeals

The High Court has refused to grant the taxpayer special leave to appeal from the Full Federal Court’s decision in Advanced Holdings Pty Ltd atf The Demian Trust v FCT [2021] FCAFC 135 (covered in the Birchstone Brief for the week ended 6 August).

Rogers v FCT [2021] AATA 4478Excess contributions tax

The AAT has found a Victorian Senior Crown Prosecutor was exempt from Div 293 excess concessional contributions tax, as she was a constitutionally protected state higher level office holder.

Subscribe

Birchstone Brief

Curated for the needs of SME tax professionals. The Birchstone Brief is delivered to your inbox every week. It contains all the tax developments you need to know from the previous week, with insights from the team at Birchstone Tax Law. No fluff. It’s the one email you will look forward to receiving.


 

* indicates required