Birchstone Brief for the week ended 6 May 2022

ATO Updates

Rulings

The ATO has issued the following Class Ruling: CR 2022/41 – JB Hi-Fi Limited – Off-market share buy-back.

State Taxes

Victorian Budget 2022-23

The Victorian has handed down the 2022-23 Budget, with the following tax and revenue measures:

  • gambling tax rates will be equalised for all electronic machine operators (including casino and venue operators); and
  • the introduction of a motor vehicle duty exemption for wheelchair accessible commercial vehicles.

Cases

Narlexi Pty Ltd v FCT [2022] AATA 993

The AAT has affirmed a decision of the Commissioner that a taxpayer was not entitled to the first cash flow boost as it had not a made a taxable supply within the relevant period.

The facts are as follows:

  • the taxpayer incorporated on 31 December 2019;
  • the taxpayer accounted for GST on a quarterly basis; and
  • the taxpayer did not make any taxable supplies until January 2021 and brought its GST to account on its activity statement for the quarter ended 31 March 2020.
The AAT affirmed a decision of the Commissioner that the taxpayer was not entitled to the cash flow boost as it had not made a taxable supply in the period starting after 1 July 2018 and ending before 12 March 2020 as required by section 5(6)(a) of the Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020.

Legislation

Tas: Land tax and duties amendments

The following Bills which implements changes to the foreign investor land tax surcharge and duty surcharge have been introduced into the Tasmanian House of Assembly: 

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