Super: Our submission on the objective of superannuation
On 28 March 2023, the Institute of Financial Professionals Australia (IFPA) provided its submission on legislating the objective of superannuation. While we fully support consistency in future policy making around superannuation, which should broadly be aimed at providing income/benefits for individuals and their dependents in retirement, we do not support legislating the objective of superannuation as proposed in the consultation paper. Our view is that legislating the objective will not achieve any real purpose as it would not in any way be binding on current or future policy makers / governments and indeed could be completely ignored. We believe the answer to what the objective of superannuation is for already exists by way of the sole purpose test. To read the full submission please click here.
More GST Determinations: circumstances where tax invoice not required
The following GST-related Determinations have been made: the A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Determination 2023 and the A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Creditable Acquisition Following a Sale of a Reversionary Interest in Commercial Premises) Determination 2023. They waive the requirements under the GST Act 1999 to hold a tax invoice before an input tax credit can be claimed in the particular circumstances to which they relate – provided stated conditions are met.
ATO and ASIC guidance on corporate collective investment vehicles
The ATO and ASIC have issued guidance for businesses registering as a corporate collective investment vehicle (CCIV). A CCIV is a new type of Australian company registered and regulated by the Australian Securities & Investments Commission (ASIC). As of 1 July 2022, businesses have been able to register their CCIVs and CCIV sub-funds. The registration for CCIVs, and their sub-funds, is a 3-phase registration process:
- Obtain an Australian Financial Services License (AFSL);
- Register with ASIC; and,
- Apply for tax registrations.
Once registered, CCIV sub-funds may have lodging and reporting obligations. The ATO will be communicating about this guidance in the next edition of the Tax professionals’ newsletter. For more information on the registration process and tax obligations, visit: Corporate collective investment vehicles and How to register a corporate collective investment vehicle and sub-fund.
Legislative instrument: Withholding Variation for Personal Services Income
The Taxation Administration (Withholding Variation for Personal Services Income) Legislative Instrument 2023 has been made. It repeals the Variation of withholding for personal services income (15/03/2013) and varies to nil the amount a personal services entity (PSE) is required to pay to the Commissioner, when it receives alienated personal services payments, in the stated circumstances.
Vic State Revenue: ruling on personal cheques for payments of debts
The State Revenue Office of Victoria has issued Revenue Ruling TAA-001v2 which replaces withdrawn TAA-001 to remove references to repealed legislation and to clarify the Commissioner’s position in relation to accepting personal cheques for payment of debts or liabilities.
