Birchstone Brief for the week ended 14 April 2023

ATO Updates

ATO to begin data matching residential investment property loan data

As announced in a gazette notice dated 3 April 2023, the ATO will acquire residential investment property loan data from authoriesd financial institutions in relation to the 2021-2022 through to the 2025-2026 income years. This data will be matched against ATO records and used (among other purposes) to:

  • identify relevant cases for action (including compliance activities and educational strategies);
  • inform rental property owners of their taxation obligations; and
  • help avoid unnecessary ATO contact to taxpayers who are correctly reporting and claiming rental property income or expenses.

GST guidance for BNPL providers updated

The ATO has released updated guidance on the GST implications for typical buy-now, pay-later (BNPL) providers. The guidance sets out the ATO’s view of the key GST considerations for BNPL providers, and in particular focuses on how the Commissioner considers such providers should be determining their entitlement to input tax credits on related costs.

Draft legislative instrument to exempt WPN holders from STP reporting

If registered, LI 2023/D9 will exempt entities that:

  • hold a Withholding Payer Number (WPN); and
  • do not have an ABN,

from single touch payroll (STP) reporting obligations.

Class rulings issued

The ATO has issued:

  • CR 2023/15 – Australia and New Zealand Banking Group Limited – Restructure – Employee share scheme – Treatment of shares or rights; and
  • CR 2023/16 – Sky Network Television Limited – Capital return.




E Group Security’s special leave application rejected

The High Court has dismissed the taxpayer’s application for special leave to appeal against the New South Wales Court of Appeal’s decision in Chief Commissioner of State Revenue (NSW) v E Group Security Pty Ltd (No 2) [2022] NSWCA 259. In that case, the Court of Appeal ruled that the taxpayer was liable to payroll tax in relation to arrangements between itself and 3 related companies which constituted “employment agency contracts” within the meaning of section 37 of the Payroll Tax Act 2007 (NSW). 



Revenue Legislation Amendment Bill 2022 (ACT) receives assent

This Bill, which:

  • amends the Duties Act 1999 (ACT) to improve the administration and operation of the ACT landholder duty regime; and
  • makes other minor and technical amendments to the Duties Act and the Land Tax Act 2004 (ACT),

was passed by the ACT Legislative Assembly on 22 March 2023 and became law on 11 April 2023. 



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.

Subscribe to our mailing list, you will receive the Birchstone Brief and updates to our webinars and resources.