Tax Reform Green Paper
My great-grandmother, who I called Grandma Mack, was a remarkable woman. Born around 1886, she passed away when I was just eight. One of her frequent tasks was meticulously cutting her front lawn with a pair of scissors. Now, it wasn’t a big lawn, but it took incredible determination and labour to achieve that perfectly […]
PSI and Part IVA Submissions
In my view, the most confusing part of the Australian income tax law for tax practitioners is the personal services income (PSI) rules. The release by the ATO of PCG 2024/D2 presented an opportunity to confront this perplexing area of the tax provisions. I fear that the opportunity is going to be lost and […]
40 years in the tax profession – Part 2
In October 1984 I transferred into the Melbourne Tax Division of Arthur Andersen & Co, which, at the time, was one of the ‘Big 8’ accounting firms in the world. Thus began my career in the Australian tax system. In this article (part 2 of a 2-part series), I will focus on what has […]
Getting a tax deduction for financial advice
Particularly as they see retirement on the horizon, people often seek financial advice to ensure their wealth is maximised. Also, financial advice may be sought for a number of other reasons during the course of one’s life. When the financial advisor gives you an invoice for their services, can you claim a tax deduction […]
40 years in the tax profession – Part 1
In October 1984 I transferred into the Melbourne Tax Division of Arthur Andersen & Co, which, at the time, was one of the ‘Big 8’ accounting firms in the world. Thus began my career in the Australian tax system. I thought some accountants would be interested in what has changed and what has not […]
Personal Services Income and Australia’s General Anti-Avoidance Rule
There is a complex set of tax rules that deal with what is known as ‘personal services income’ (PSI). PSI results from the efforts of human beings where the income is mainly a reward for the personal efforts and skills of an individual. Many occupations derive PSI. They include both so-called ‘professionals’ and trades […]
Section 15 still problematic
Recently, an exposure draft of the Tax Agent Services (Code of Professional Conduct) Amendment (Measures No. 2) Determination 2024 was released for comment. Comments are due by 2 October 2024. The changes are in response to the backlash from the accounting profession, particularly in relation to sections 15 and 45 of the Determination. The proposed […]
Government superannuation co-contribution scheme
For some years the Federal Government has operated a scheme to contribute money to certain individuals’ superannuation funds. These individuals are referred to as ‘low-income earners’. In many family groups, there are often such individuals, even if the overall group earns considerable income. There is another Government scheme called the Low-Income Superannuation Tax Offset scheme. […]
Tax Agent Services Act Changes – Q & A
At the date of this article some significant changes have recently been made to the Tax Agent Services Act (TASA). The Tax Practitioners Board (TPB) has also released two draft information papers in relation to these changes. These are TPB(I) D51/2023 and TPB(I) D52/2023. Further, there are proposed amendments to the laws governing tax […]
Small Business CGT Concessions – Active Asset
To obtain the benefit of the small business CGT concessions (“the SB concessions”) an “active asset” must be disposed of. Among other things, if an asset has been owned for 15 years or less, the asset must be an active asset for at least half of a specified period. If the asset is owned for […]