[4042] Ordinary meaning of the term 'employee' [updated]
We are reviewing several products that currently provide guidance on the meaning of the term ‘employee’ to reflect the direction provided in the High Court decision in Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1:
- Taxation Ruling TR 2023/4 Income tax: pay as you go withholding – who is an employee?
- Taxation Ruling TR 2013/1 Income tax: the identification of 'employer' for the purposes of the short-term visit exception under the Income from Employment Article, or its equivalent, of Australia's tax treaties
- Superannuation Guarantee Rulings SGR 2009/1 Superannuation guarantee: payments made to sportspersons and SGR 2005/2 Superannuation guarantee: work arranged by intermediaries
- ATO Interpretative Decision ATO ID 2014/28 Superannuation Guarantee Status of the Worker: Pizza delivery drivers as employees.
Expected completion
December 2024.
Comments
Practical Compliance Guideline PCG 2023/2 Classifying workers as employees or independent contractors – ATO compliance approach published on 6 December 2023.
A draft update to Taxation Ruling TR 2023/4DC1 Income tax and superannuation guarantee: who is an employee? published on 26 June 2024, with the comments period closing 9 August 2024. Superannuation Guarantee Ruling SGR 2005/1 Superannuation guarantee: who is an employee? has now been withdrawn.
For more information, see the Decision impact statement on Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1.
Contact
[4166] Advice fees paid by superannuation funds [updated]
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
Decision impact statement on 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 [updated]
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