Birchstone Brief for the week ended 3 March 2023

Gift & Loan Back Arrangements – Webinar

Don’t forget to register for our webinar regarding the ‘gift and loan back’ strategy on 21 March at 11am AWST / 2pm AEDT, where Daniel Taborsky and Lisa Monaco will put the strategy under the microscope and discuss: 

  • what the strategy is and how it should work;
  • whether the strategy is still viable in light of recent cases;
  • what the potential benefits and risks are; and
  • what should be done when setting up new, or maintaining existing, gift and loan back arrangements. 

Click the link below to find out more and to register. 
Register for our Gift & Loan Back Arrangements webinar

State Taxes

NSW: Practice Note on Shared Equity Home Buyer Helper Scheme 

Revenue NSW has released CPN 028, which provides guidance and examples concerning certain aspects of the NSW Shared Equity Home Buyer Helper scheme. Specifically, the Practice Note:

  • sets out examples of the types of financial assets the Chief Commissioner may include under the NSW Shared Equity Scheme Policy Guidelines 2022 when determining whether an applicant satisfies the asset limit to participate in the scheme and whether they have excess savings; and 
  • describes circumstances when the Commissioner may or may not require an applicant to apply some or all of their excess savings towards the purchase of a property under the scheme. 

 

Other News

Superannuation balances above $3 million to be taxed at 30%

The Albanese government has announced its intention to introduce legislation to ensure that, from 1 July 2025, the tax rate applied to earnings on superannuation account balances above $3 million will increase from 15% to 30%. A 15% tax rate will continue to apply for earnings below the $3 million threshold. The changes are expected to affect around 80,000 people.

 

Cases

FCT v Complete Success Solutions Pty Ltd ATF Complete Success Solutions Trust [2023] FCAFC 19 – Federal Court remits gold bullion ITC case to AAT following successful appeal and cross-appeal

The Full Federal Court has allowed the Commissioner’s appeal and the taxpayer’s cross-appeal against the AAT’s decision in STNK v FCT [2021] AATA 3399 (first covered in the Birchstone Brief for the week ended 1 October 2021).

On appeal, the Commissioner conceded one of the customers the taxpayer supplied gold bullion to in the first relevant period was a dealer in precious metals. This led the Court to find the issues concerning the first period should be remitted to the AAT for reconsideration, thereby allowing the taxpayer’s cross-appeal. Conversely, the Commissioner’s appeal was successful as the Court found the AAT had, by engaging in only limited analysis of the application of section 165-1 of the GST Act to the second relevant period, failed to fully undertake and complete the relevant statutory task. 

The Court ultimately allowed both the appeal and the cross-appeal and ordered that the matter be remitted to the AAT for determination according to law. 

 

Legislation

Tax Administration Amendment (Combating Wage Theft) Bill 2021 (NSW) – Bill lapsed on prorogation of NSW Parliament

The Bill (first covered in the Birchstone Brief for the week ended 14 May 2021) lapsed upon the porogation of the NSW Parliament on 27 February ahead of the State’s upcoming election. 
 

 

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