[4162] Foreign superannuation fund and applicable fund earnings
Title
Decision impact statement on Came and Commissioner of Taxation [2023] AATA 3951
Purpose
This Decision impact statement outlines the ATO's response to this case, which concerns when a taxpayer is able to make a choice to have applicable fund earnings with respect to a payment from a foreign superannuation fund assessed to an Australian complying superannuation fund rather than themselves.
Comments
The Decision impact statement on Came v Federal Commissioner of Taxation [2023] AATA 3951 published on 4 December 2024. Comments period closes on 7 February 2025.
Contact
Simon Weiss, Office of the Chief Tax Counsel
Phone: (02) 6216 1943
[4166] Advice fees paid by superannuation funds
Title
Draft Practical Compliance Guideline
Fees for personal financial advice paid from member accounts – calculating the deduction and pay as you go withholding obligations for superannuation funds
Purpose
This draft Practical Compliance Guideline will provide superannuation funds with practical guidance for calculating a deduction for the payment of advice fees requested by members and explain when the Commissioner may apply compliance resources to review deductions claimed under table item 5 of subsection 295-490(1) of the Income Tax Assessment Act 1997 (ITAA 1997).
It will also provide a compliance approach in relation to a superannuation fund’s obligation to withhold from these payments for the income years prior to the enactment of new paragraph 307-10(e) of the ITAA 1997, which excludes these payments from the definition of superannuation benefit from 1 July 2019.
Expected completion
Early 2025
Contact
Jay Gao, Public Groups
Phone: (02) 9374 5168
For more information, see Consultation matter [202421].
[4176] Disqualifying individuals from acting as trustee for superannuation entities
Title
Decision impact statement on Merchant and Commissioner of Taxation [2024] AATA 1102
Purpose
This Decision impact statement outlines the ATO's views on the decision in this case, which set aside the Commissioner’s decision to disqualify the applicant under subsection 126A(2) of the Superannuation Industry (Supervision) Act 1993 from acting as a trustee or a responsible officer of a corporate trustee of superannuation entities.
Comments
Merchant and Commissioner of Taxation [2024] AATA 1102 published on 4 September 2024. Comments period closed on 4 October 2024.
Contact
[4182] Expenditure incurred under a non-arm’s length arrangement and superannuation contributions
Title
Addendum to Law Companion Ruling
Law Companion Ruling LCR 2021/2 Non-arm’s length income – expenditure incurred under a non-arm’s length arrangement
Purpose
LCR 2021/2 is being updated to include the Commissioner’s view as to how the amendments in explanations of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024 apply in respect of the non-arm’s length expenditure and non-arm’s length component provisions.
Expected completion
To be advised
Comments
Draft update LCR 2021/2DC1 published on 27 November 2024. Comments period closes on 24 January 2025.
Contact
Bonita Tsang, SEO
Title
Addendum to Taxation Ruling
Taxation Ruling TR 2010/1DC Income tax: superannuation contributions
Purpose
TR 2010/1DC is being updated to include the Commissioner’s view about the amendments in explanations of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024. In addition to updates for the non-arm's length expenditure amendments, TR 2010/1DC (which was previously issued for consultation on 28 July 2021) will also be updated with regard to issues such as in specie contributions, the maximum earnings test and the deductibility of contributions.
Expected completion
To be advised
Comments
Draft update TR 2010/1DC2 published on 27 November 2024. Comments period closes on 24 January 2025.
Draft Taxation Ruling TR 2010/1DC was withdrawn on 27 November 2024.
Contact
Bonita Tsang, SEO
[4200] Administration of penalties that apply where employers or superannuation funds fail to comply with event-based reporting obligations
Title
Draft Law Administration Practice Statement
Administration of penalties that apply to employers who fail to comply with their Single Touch Payroll (STP) reporting obligations
Purpose
Event-based reporting regimes were introduced in 2018 for employers (STP) and for superannuation funds (member account transactions and attributes). The information reported through these reporting regimes has a range of applications across the tax and super systems, and their effectiveness can be reduced as a result of:
- incorrect and incomplete reporting
- reporting in an incorrect format (such as reporting in the original STP format rather than the STP Phase 2 format used since 2022)
- failure to report at all.
There is a need to provide guidance for ATO staff on the administration of penalties that may apply to employers or superannuation funds that fail to meet their reporting obligations.
Expected completion
March 2025
Contact
Title
Draft Law Administration Practice Statement
Administration of the false and misleading statement penalties on superannuation funds that do not report superannuation contribution information to the Commissioner accurately.
Purpose
Event-based reporting regimes were introduced in 2018 for employers (STP) and for superannuation funds (member account transactions and attributes). The information reported through these reporting regimes has a range of applications across the tax and super systems, and their effectiveness can be reduced as a result of:
- incorrect and incomplete reporting
- reporting in an incorrect format (such as reporting in the original STP format rather than the STP Phase 2 format used since 2022)
- failure to report at all.
There is a need to provide guidance for ATO staff on the administration of penalties that may apply to employers or superannuation funds that fail to meet their reporting obligations.
Expected completion
March 2025