RSM Australia

Tax Insights

Glencore Transfer Pricing case – taxpayer again prevails

12 November 2020
The Full Federal Court has largely dismissed the ATO's appeal against a September 2019 decision by Davies J in the transfer pricing case involving Glencore Investment Pty Ltd (“Glencore”).

Payroll tax relief to entice international and interstate businesses to move to NSW

6 November 2020
On 5 November 2020, the New South Wales (NSW) Government announced its new “Jobs Plus Program” (Program). The $250m Program directly encourages domestic and international businesses to move their head office or expand their operations into NSW through significant payroll tax relief.

NSW land tax surcharges for foreign persons

29 October 2020
Under current legislation, ‘foreign persons’ that acquire or own residential land in NSW may be subject to surcharge purchaser duty (additional 8%) and ongoing surcharge land tax (additional 2%).

Federal Budget implications for the R&D Tax Incentive

20 October 2020
The Australian Federal Budget was handed down on 6 October 2020, and outlined various economic stimulus measures with the intent to support Australia’s economic recovery through the COVID-19 pandemic and beyond.

Webinar: JobKeeper 2.0 - What you need to know | 14 October 2020

20 October 2020
There has been significant changes to the JobKeeper payments in the last few months.

New Queensland Stamp Duty Exemption for Eligible Small Business Restructures

19 October 2020
On 9 October 2020, the Queensland Office of State Revenue (OSR) released Public Ruling DA000.16.1 (the Ruling), which introduces an exemption from duty for certain transactions relating to small business restructures.

Space: The final frontier for GST?

16 October 2020
The Technology and Innovation team at RSM share practical GST insights from within the developing Australian Space Industry. Goods and services tax (GST) in Space - is the supply of new and developing technology taxable?

GST treatment for banking products released

2 October 2020
For a number of years, the Australian Taxation Office (ATO) has been revisiting long-held formal and informal positions it has taken with respect to the GST treatment of a range of banking products and financial services. 

Hybrid Mismatch Amendments

24 September 2020
Important technical amendments clarifying the operation of Australia’s hybrid mismatch rules received Royal Assent on 3 September 2020. Background

Victorian government business survival and adaptation package

15 September 2020
Following the release of its Roadmap to ‘COVID Normal’ on 6 September 2020, the Victorian Government recently announced $3 bn of financial support for Victorian Businesses. 

LinkedIn advertising changes for contractors

14 September 2020
Recent decisions reached by the Full Federal Court in FCT v Fortunatow [2020] FCAFC 139 have put a spotlight on the ‘unrelated clients test’ for contractors providing personal services.

Fringe Benefits Tax in a COVID-19 world

10 September 2020
The ATO have recently updated the guidance published on their website on the treatment of the provision of certain Fringe Benefits to employees, in light of the current pandemic. Two of the key items covered are:

JobKeeper 2.0 legislation passed

3 September 2020
Legislation has been passed by Parliament extending the JobKeeper wage subsidy scheme until 28 March 2021. The current JobKeeper rules will cease to have effect from 28 September 2020.

Claiming deductions for working from home - with a twist

31 August 2020
Many of us have been working from home recently and are continuing to adopt hybrid versions of working between the office and the home.

Interest-free loans - New draft ATO guidance released

31 August 2020
The ATO has published much-awaited guidance in relation to outbound interest-free loans - which it has released for comment in Draft Taxation Ruling TR 2017/4 DC2.

The case of employee underpayments

28 August 2020
Several large companies, including Westpac, Woolworths, Bunnings, and the Commonwealth Bank, have made front-page headlines for employee underpayments.

Arm’s length debt test – New ATO position finalised

24 August 2020
The ATO has simultaneously published two documents which now represent the ATO’s views on the application of the arm’s length debt test (“ALDT”) in determining borrowing capacity.

Urgent action required by employers | JobKeeper Update

17 August 2020
The government has introduced further changes to the JobKeeper Payment, designed to include as many employees as possible.

Changes to JobKeeper – what do employers need to do now?

14 August 2020
With all the changes the Australian government announced around the JobKeeper extension (JobKeeper 2.0 and 2.1), there has been some confusion around the Government changing the employee eligibility date from 1 March 2020 to 1 July 2020. 

JobKeeper 2.1 - Treasury announces further changes to JobKeeper payment

7 August 2020
In response to the significant impact of coronavirus restrictions on business owners in Victoria, and likely impacts to follow in NSW, Treasury has announced further changes to the JobKeeper V2.0 proposals originally announced in July.

COVID-19 Financial Reporting: Accounting for government assistance

7 August 2020
As the COVID-19 pandemic continues to have a serious impact on the economic environment, governments continue to provide different forms of assistance to affected entities.

New announcement and changes to JobKeeper 2.0 - What it means for business owners

21 July 2020
The government has today released more detail surrounding much anticipated changes to the JobKeeper program.

Queensland foreign owner land tax surcharge: Ex gratia relief guidelines

20 July 2020
In last year’s State Budget, the Queensland Government unexpectedly announced an immediate 2% surcharge on the Queensland land tax liabilities of foreign companies and trustees of foreign trusts (collectively, “foreign owners”).

A better approach to JobKeeper?

20 July 2020
With speculation rife over the future of the JobKeeper scheme, we explore what has worked with the scheme, what hasn’t and possible changes to the scheme that may be considered when the Treasurer releases his economic update and the results of the Treasury review into the scheme.

JobKeeper - Will your records sustain an ATO review?

10 July 2020
The ATO have recently updated their ‘Keeping JobKeeper Fair’ guidance and have provided examples of the type of activity they are targeting when reviewing eligibility.

ATO’s assurance initiatives - Top 1,000 Tax Performance Program

7 July 2020
Established in July 2016, the ATO's Top 1,000 Tax Performance Program is in its fourth year of establishing greater assurance that large public and multinational taxpayer groups are paying their ‘fair share of tax’.

Division 7A minimum yearly loan repayments and COVID-19

26 June 2020
The ATO has released long-awaited guidance on Division 7A minimum yearly loan repayments and COVID-19. However, given the late release of the guidance and the onerous requirements to be satisfied in the application form it is arguably too little, too late.

R&D year end planning during an unprecedented time

15 June 2020
In what has been an unprecedented year so far around the world, business and life in Australia have never been more different.

The ATO Director Penalty Regime

15 June 2020
The ‘corporate veil’ separates the rights, obligations and liabilities of a company’s Shareholders / Directors from those of the company itself.

The R&D Tax Incentive and Your Business

11 June 2020
The Research and Development Tax Incentive is a Federal Government initiative to encourage companies to invest in innovation that benefits Australia.

Instant asset write off extended

9 June 2020
In an effort to promote further investment by Australian business, the Federal Government has announced an extension of the instant asset write off to 31 December 2020. Legislation is expected to be introduced shortly.

Do you have the evidence ready for a JobKeeper claim review by the ATO?

5 June 2020
The first of June is traditionally the start of winter but, for the tax-minded amongst us, 1 June 2020 also marks the official start of the next phase of the JobKeeper scheme.

Tax planning considerations in a COVID-19 world

4 June 2020
In times of crisis, it is normal to overlook certain aspects of life as health and safety become a focus. As is with the common cliché, the reality is that taxes are still a prevailing issue for everyone despite the challenges they may be facing.

Change, risk and opportunity: R&D tax claims in the mining and resources sector

11 May 2020
With so much change impacting business, we present a summary for the mining and resource sector highlighting issues that could impact (some positive) their current and future R&D tax claims.

The Moreton Resources Case - R&D tax incentive in Australia

26 March 2020
The Moreton Resources Case – Finally certainty amongst the uncertainty for the R&D tax incentive in Australia, but only if you know how to find it.  

Beware of purchasing Victorian residential land in a trust

10 February 2020
The Victorian Duties Act 2000 imposes a stamp duty surcharge of 8% on the acquisition of Victorian residential property by a foreign purchaser. This surcharge brings the top stamp duty rate to 13.5%.

R&D tax update | what you need to know in 2020

28 January 2020
30 April 2020 Deadline Approaching A general reminder for year-ended 30 June 2019 companies planning on accessing the R&D Tax Incentive program that you must lodge your R&D Application Form with AusIndustry within ten (10) months of the relevant financial year-end.

Changes may see Aussie expats taxed on disposal of their Australian home

18 December 2019
The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019 (the Bill) was re-introduced to the House of Representative on 23 October 2019 despite widespread criticism of the retrospective nature of the legislation and unresolved issues surrounding the impact on certain Australian residents. 

Grain Marketing - A Tax Guide for Common Grain Contracts

18 November 2019
Harvest in the West Australian wheatbelt is well and truly here, we think you (the hard-working farmers) all deserve a cold beer.

Farmers set to lose tax deductions for vacant land

22 October 2019
Farmers are set to lose tax deductions for vacant land – despite calls to Government to change the proposed legislation. The Government provided assurances “…farmers will be fully protected from any unintended consequences of the bill”. 

SimBT Tax Losses - Similar but not Simpler

10 July 2019
Similar business test

Tax time for individuals

2 July 2019
With tax time fast approaching, no doubt there are many individual taxpayers eagerly counting down the days until they can lodge their 2019 Income Tax Return and hopefully receive a much-anticipated tax refund.

Instant asset write-off – what can you claim?

17 June 2019
The instant asset write-off is not available for all business assets and determining which assets are eligible may pose a challenge for many small and medium-sized business owners (SME) and their advisers.

What to consider when tax planning for EOFY

4 June 2019
With the end of the financial year looming, it’s time to think about your tax planning options before 30 June hits. We’ve curated a list of top things to focus on when organising your tax affairs for year-end, applicable to businesses, primary producers, trusts and individuals.

Australia's hybrid mismatch regime

7 May 2019
In response to recommendations by the Organisation for Economic Co-operation and Development (‘OECD’) in Action 2 of it's Base Erosion and Profit Shifting (‘BEPS’) initiative in 2015, Australia has now enacted a new hybrid mismatch regime that generally applies to income years commencing on or after 1 January 2019.

When similar is sufficient - new hope for deducting company tax losses

12 April 2019
The ability for a company to recoup its prior year tax losses has always been a contentious topic. If a company wishes to recoup its tax losses, it’s required to pass the continuity of ownership test (COT), and failing COT, the same business test (SBT).

Labor's proposed changes to franking credits

21 March 2019
With a Federal election looming, now is the time to consider the impact of a Labor government and its proposed tax policies on Australian taxpayers. For corporate entities, a key tax change will be Labor’s proposed roll back of refundable imputation credits which was introduced by the Howard government. 

The devil in the detail – have you ‘used’ that mining, quarrying or prospecting right?

4 March 2019
While Australia’s tax system rightly supports resource exploration by allowing deductions for depreciating assets first used in exploration, concerns that the deduction was being misused prompted an integrity approach to support genuine exploration.

ATO broadens Reportable Tax Position lodgement requirements

7 February 2019
In the quiet of the first week of February, as Australia is getting back to work after the holiday period, the Australian Taxation Office (ATO) announced sweeping changes to its Reportable Tax Position (RTP) Schedule criteria. 

Satyam Computer Services v ATO: international tax war intensifies

25 October 2018
Satyam Computer Services has returned to the Australian Courts to again contest Australia’s taxing rights over fees paid by Australian customers for IT/technical services performed by Satyam employees based in India.

Junior Minerals Exploration Incentive - Get in quick!

15 May 2018
The Exploration Development Incentive (EDI) was replaced by the Junior Minerals Exploration Incentive (JMEI) for the 2018 to 2021 years. JMEI applications for the 2019 year must be electronically submitted between 1 June and 30 June 2018.

Will passive income affect your entitlement to be taxed at 27.5%?

10 November 2017
The Parliament recently introduced legislation that seeks to tax corporate entities at the full 30% tax rate where more than 80% of the company’s income for the year is base rate passive income.   A recap of the current law

Long-term construction contract ruling | Draft ruling issued

31 October 2017
In 1987, Aretha Franklin finally got the respect she deserved by being the first woman inducted into the Rock ‘N’ Roll Hall of Fame. Also that same year, the Australian Taxation Office (ATO) released Income Tax Ruling IT 2450 to determine how to return income and recognise expenses on long-term construction contracts.

OECD releases revised Transfer Pricing Guidelines

17 July 2017
On 10 July 2017, the OECD released its revised OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations  in order to formally incorporate the most significant body of work ever undertaken by the OECD and its member (and indeed some non-member) countries regarding harmful international tax practices – the Base

Signing the Multilateral Instrument

6 June 2017
What happens if you threw a party and the guest of honour did not turn up? The international aspects of the G20/OECD’s Base Erosion and Profit Shifting (BEPS) project will become a reality at a treaty signing ceremony to be held in Paris, on 7 June 2017. 

Chevron Australia’s transfer pricing fight to go (at least) another round

22 May 2017
Chevron Australia has lodged the necessary paperwork with the Australian High Court registry, to apply for special leave to appeal against the Full Federal Court’s decision, in the long running and ground breaking transfer pricing litigation.

Australian GST: low value threshold (LVT) changes a step closer

12 May 2017
With a low value threshold (LVT) set at AUD$1,000, Australia has been very much at the ‘generous’ end of the global spectrum of GST-free imported goods, to the benefit of Australian consumers and the chagrin of Australian retailers.

Fringe Benefits Tax Spotlight

18 April 2017
Customer Loyalty Programs Do you provide employees with a business credit card associated with a customer loyalty program? 

Deductions for Mining & Petroleum Exploration Expenditure

15 March 2017
The Australian Taxation Office (“ATO”) have recently issued Taxation Ruling TR 2017/1 to provide guidance on the application of both section 8-1 and section 40-730 of the Income Tax Assessment Act 1997 (“ITAA1997”).