The Assistant Treasurer has announced that it has tasked Treasury to review the operation of the Your Future, Your Super (YFYS) laws after the second round of MySuper performance tests have taken place by August this year. In making the announcement, the Assistant Treasurer said that “accountability mechanisms must not simultaneously create perverse or unintended outcomes for members” and that the “government is aware of concerns that the YFYS laws have the potential to create such outcomes by discouraging certain investment decisions or certain infrastructure investments”.

Sole trader not entitled to Cash Flow Boost
The AAT has confirmed that a sole trader was not entitled to the Cash Flow Boost (CFB) because at the relevant time in 2018-19 income year when it was required that an “amount be included in the claimant’s assessable income in relation to carrying on a business” he was carrying on the business in partnership with another person. Moreover, at that time, the partnership returned a loss and therefore no amount had been included in assessable income. The AAT also indicated that this would be the case even if the taxpayer could be considered to be carrying on a business on his own as a partner in a partnership as there was still no relevant amount included in his assessable income in view of the loss made by the partnership. (Thiele and FCT [2022],1 July 2022.)

ATO compliance approach: Foreign investment in real estate
The ATO has updated its information on its compliance approach to “foreign investment in real estate”. It covers such matters as: the foreign investment rules; Our compliance strategy; the ATO’s compliance actions; reporting a breach of the foreign investment rules; and where to get assistance.