Miscellaneous

Family trust distribution tax (‘FTDT’) is a special, 47%, tax sometimes payable by a trustee, director or partner. It applies when a trust has made a family trust election (‘FTE’), or an entity has made an interposed entity election (‘IEE’), and makes a distribution outside the ‘family group’ (as defined) of the specified individual in […]

The main residence exemption needs to be considered in a variety of situations when a taxpayer sells a property they have lived in. The ATO hopes that the following tips will help in this regard: Taxpayers should consider if they have started earning income from their home (in which case they may need to get […]

The ATO has advised that it will acquire account identification and transaction data from crypto designated service providers for the 2024 to 2026 income years. This data will include the following: client identification details (names, addresses, dates of birth, phone numbers, social media accounts and email addresses); and transaction details (bank account details, wallet addresses, […]

To avoid an unfranked dividend under the Division 7A rules, loans from a private company to its shareholders or their associates must be either repaid in full or be covered by a ‘Division 7A complying loan agreement’ before the company’s lodgment day. Complying loan agreements require minimum yearly repayments (‘MYRs’) comprising of interest and principal […]

By paying their tax bill in full and on time, taxpayers can avoid paying the general interest charge (‘GIC’), which is currently 11.34%, and which accrues daily for any overdue debts. The ATO advises taxpayers that, if their business is dealing with financial difficulties, there are some options to help make their tax bill “less […]

As trustees prepare for year-end distributions, they should do the following: review the relevant trust deed to ensure they are making decisions consistent with the terms of the deed; consider who the intended beneficiaries are and their entitlement to income and capital under the trust deed; notify beneficiaries of their entitlements, so that the beneficiaries […]