2 weeks to go – register now for our annual Advisers’ Day!
The countdown is on for our annual Adviser’s Day!
Join us for a day of insightful sessions curated for professionals in the SME space.
The program for the day covers a variety of topics including the employees v contractors distinction, common payroll tax mistakes, expert insights on estate planning for blended families and trust distributions and a family law panel. Dive into emerging trends and challenges that we have seen in practice, and top it off with our small business CGT concessions workshop.
But it’s not all work — after a day of enriching content, mingle with peers and relax over drinks from 5PM onwards.
We have a variety of ticket options to suit your circumstances, including a remote live streaming option and corporate tickets. Click on the link below to find out more and register.
BPFN v Commissioner of Taxation  AATA 2330 – Interest income derived from a series of loans held not to be NALI
The AAT held that the non-arm’s length income (NALI) provisions did not apply to interest income derived from back to back loan agreements (including between related parties).
The taxpayer was a corporate trustee for an SMSF. The taxpayer earned interest income through trust distributions from a unit trust, JJUT. JJUT lent amounts to related entities (being ABC Pty Ltd and the DEF trust), which on lent the amounts to independent third parties.
This income was reported as exempt current pension income (ECPI). However, following an audit, the Commissioner classified the income as NALI (and therefore, precluded from being ECPI).
The central issue was whether the NALI provisions, specifically, section 295-550(5) of ITAA 1997 applied. While the AAT acknowledged that internal dealings weren’t at arm’s length, it determined that the derived interest income matched arm’s length expectations. Consequently, the AAT held that the interest income was not NALI.
Hannover Life Re of Australiasia Ltd v FCT  FCA 680 – Overhead expenses partly creditable – Appeal update
The Commissioner has filed a notice of appeal to the Full Federal Court against the decision in Hannover Life Re of Australiasia Ltd (covered in the Birchstone Brief for the week ended 30 June 2023). In this case, the Federal Court had held that a life insurance company was partly entitled to input tax credits in relation to its overhead expenses.
This Bill was introduced to Parliament on 9 August 2023, which, if enacted, will introduce the following changes:
The existing transfer duty rebate for purchases of off-the-plan apartments was due to expire on 24 October 2023 but has been extended to 30 June 2025.