Downsizer super contributions: new 55 year age threshold
The Government has issued a reminder that from 1 January 2023, the eligibility age for “downsizer” superannuation contributions will expand to include homeowners aged 55 and over – who can now contribute $300,000 to their superannuation account from the proceeds of the sale of a home. Likewise, a couple aged 55 and above can make a total contribution of up to $600,000 from the sale of their home, with each spouse contributing up to $300,000.
GST margin scheme: Sale of lots of land under one contract not a single supply
The Full Federal Court has unanimously confirmed that a proposed sale of several lots of land under a single contract would not be a single supply for the purposes of the GST margin scheme. The taxpayer, Landcom, proposed to sell 4 lots of land that it owned to a developer to enable the developer to build residential properties. The issue for consideration was whether sale would be a single “supply” of land for the purpose of calculating the “margin” in s 75-10 of the GST Act 1999. In dismissing the Commissioner’s appeal, the Full Court found that, based on the language of the provision, the margin scheme would apply to each interest in land subject to the sale. (FCT v Landcom [2022] FCAFC 204, Full Federal Court, 22 December 2022.)
Company residence: transitional compliance approach extended
The ATO has updated PCG 2018/9 (Central management and control test of residency: identifying where a company’s central management and control is located) which under transitional rules allows companies to make arrangements for their central management and control to be exercised outside Australia. Under this update, companies now have until 30 June 2023 to make the necessary changes. Note: The ATO says it will not be providing any further extensions.
