Daily Update for Mon 11 March 2023

There will be no Daily Update published on Monday 11 March 2024due to the Public Holiday in Victoria.Publication of the Daily Update will resume on Tuesday 12 March 2024

Super on Government Paid Parental Leave from 1 July 2025The Government has announced that it will reform Paid Parental Leave (PPL) and will pay superannuation on the Government payment from 1 July 2025. The Government said that paying superannuation on PPL was also a key recommendation of the Women’s Economic Equality Taskforce and that this reform is an investment in women’s economic security and in the broader economy. The Government also said that this reform will build on the Government’s work to modernise PPL and expand the payment to a full six months by 2026.

ATO information on Foreign Resident Capital Gains WithholdingThe ATO has released information on Foreign Resident Capital Gains Withholding. It now applies at the rate of 12.5% for all property sales of $750,000 or more – unless there is an approved variation. The ATO says that the most common reasons why a seller may apply for a variation include: making a capital loss; not having an income tax liability; and foreclosure. The ATO also said that in 2023 over 60% of applications for variations were lodged late, affecting settlement and that when your clients are too late applying, the conveyancer or solicitor has no choice but to withhold 12.5%. The ATO also states the following: include the sales contracts with the variation application; variations must be lodged online at least 28 days before property settlement to ensure processing time; the main residence exemption doesn’t apply to foreign residents; and Australian residents for tax purposes must have a clearance certificate before settlement to prove their residency for tax purposes, so no withholding occurs.