The Australian Taxation Office (ATO) has altered the way that temporary residents departing Australia claim there superannuation monies. Where the funds are claimed within 6 months of departing Australia, members will continue to claim from the super fund. 

 

The ATO however, will write to super funds who have members who have been gone for over 6 months and require the fund to transfer the member’s benefits to them. Members will then need to apply to the ATO for a Departing Australia superannuation payment (DASP).

 

This rule applies to temporary residents who have left Australia and whose visa has expired.

 

It appears that the ATO will identify these people by data matching with the Department of Immigration and Citizenship.

 

From 1 April 2009, there will also be new withholding tax rates for DASPs. These are:

·         35% for a taxed element of a taxable component  

·         45% for an untaxed element of a taxable component.

POSTED: 21-Jan-2009

 

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During 2006, the Australian Taxation Office (ATO) began to make noises about whether investment in Agri-bususines (forestry plantations and food crops) was in fact tax deductible (as was the tax position at that time). During 2007, the ATO produced a tax ruling giving the new ATO position that investment was of a capital nature and therefore not tax deductible. This was a total reversal of its previous position.

 

This ruling applied to all future investments only and had no impact on investments already in place, which would be guaranteed to have the previously existing position continue.

 

The government, wishing to continue to foster plantation timber production responded to the new ATO position by legislating to allow the deductibility of Forestry investments, but did not address those invested into non-forestry agricultural endeavours such as growing fruits and other crops.

 

The Agricultural Managed Investment Scheme (MIS) industry, believing the ATO ruling was contrary to law, launched a test case against the ATO.

 

This has now been decided by the full court which has unanimously agreed with the MIS proposition and reinstated the previous position where rent and fees paid were deductible to the investor.  The Commissioner for Taxation has indicated he will not appeal the decision.

 

This is not only a proper and just decision as the ruling by the ATO defied logic, but a win for common sense. Much of the innovation in production methods and improvement in product (including new varieties and improved growth rates) has come from the involvement of the MIS industry which would have been lost to Australia has the ATO decision stood.

 

POSTED: 24-Dec-2008

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Legislation to make treatment of same-sex couples and their children, the same as heterosexual couples and their children, has received Royal Assent.

 

The new law ensures that same-sex partners are now treated as a couple for the purposes of eligibility for Centrelink benefits, tax offsets and Medicare levy surcharge, amongst other matters.

 

Commonwealth superannuation legislation has also been amended so that same-sex defacto partners (as defined) are able to access a reversionary pension from the defined benefit superannuation fund of a member. Additionally, the children of such a relationship are now treated as dependants for superannuation and taxation purposes.

 

POSTED: 19-Dec-2008

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