Month: March 2025

Source:

Source: South Australia Police

The Girrawheen Hub Precinct redevelopment continues to take shape, with community feedback now being sought on the concept design.

Source:

Source:

[4095] Cross-border supplies [updated]

Title

Finalisation of Goods and Services Tax Ruling GSTR 2005/6 Goods and services tax: the scope of subsection 38-190(3) and its application to supplies of things (other than goods or real property) made to non-residents that are GST-free under item 2 of the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999

Purpose

This Ruling is being updated and modernised to reflect changes to subsection 38-190(3) of the A New Tax System (Goods and Services Tax) Act 1999 made by the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 (SLA Act). The changes impact how goods and services tax (GST) applies to cross-border supplies. Schedule 2 of the SLA Act (generally about business-to-business supplies) applies from 1 October 2016.

Expected completion

To be advised

Comments

The draft update to GSTR 2005/6 published on 26 March 2025. Comments period closes on 9 May 2025.

Contact

Katrina Bond, International, Support and Programs

Phone: (03) 8792 1539

Katrina.Bond@ato.gov.au

Title

Finalisation of Goods and Services Tax Ruling GSTR 2007/2 Goods and services tax: in the application of paragraph (b) of item 3 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 to a supply, when does ‘effective use or enjoyment’ of the supply ‘take place outside Australia’?

Purpose

This Ruling is being updated and modernised to incorporate amendments made by the SLA Act. The changes impact how GST applies to cross-border supplies. Schedule 1 of the SLA Act (about business to consumers supplies) applies from 1 July 2017 and Schedule 2 of the SLA Act (generally about business-to-business supplies) applies from 1 October 2016.

Expected completion

To be advised

Comments

The draft update to GSTR 2007/2 published on 26 March 2025. Comments period closes on 9 May 2025.

Contact

Katrina Bond, International, Support and Programs

Phone: (03) 8792 1539

Katrina.Bond@ato.gov.au

[4125] Food of a kind marketed as prepared meals

Title

Final Goods and Services Tax Determination

Food of a kind marketed as a prepared meal

Purpose

This Determination will outline the Commissioner’s view on the meaning of ‘food of a kind marketed as a prepared meal’ by reference to key concepts referred to in the Federal Court decision in Simplot Australia Pty Limited v Commissioner of Taxation [2023] FCA 1115.

Comments

Revised Draft Goods and Services Tax Determination GSTD 2024/D3 Goods and services tax: supplies of food of a kind marketed as a prepared meal published on 16 October 2024. Comments period closed 15 November 2024.

Draft Goods and Services Tax Determination GSTD 2024/D1 Goods and services tax: supplies of food of a kind marketed as a prepared meal, which published on 27 March 2024, has been withdrawn.

Expected completion

To be advised

Contact

Jo Drum, International, Support and Programs

Phone: (03) 8792 1469

Jo.Drum@ato.gov.au

[4130] Supplies of sunscreen

Title

Final Goods and Services Tax Determination

Supplies of sunscreen

Purpose

This Determination sets out the Commissioner’s preliminary view on when a supply of a sunscreen preparation is GST-free under subsection 38-47(1) of the A New Tax System (Goods and Services Tax) Act 1999. Draft Goods and Services Tax Determination GSTD 2024/D2 Goods and services tax: supplies of sunscreen published on 14 August 2024. Comments period closed 13 September 2024.

Expected completion

To be advised

Contact

Sharon Iselin, International, Support and Programs

Phone: (07) 3121 7318

Sharon.Iselin@ato.gov.au

[4186] Toddler formula products

Title

Draft Goods and Services Tax Determination

Supplies of toddler formula products

Purpose

This Determination will outline the Commissioner’s view of the term ‘infant’ in the context of table item 13 of Schedule 2 to the A New Tax System (Goods and Services Tax) Act 1999, which provides that ‘beverages, and ingredients for beverages, of a kind marketed principally as food for infants or invalids’ are GST-free. This issue is currently considered in Issue 14 – Beverage for infants of the food industry register. Since this was published, there have been significant developments in the industry and we have received feedback asking us to review if an infant can be a person beyond the age of 12 months.

Expected completion

To be advised

Comments

We are further considering the scope of the draft Determination.

Contact

Jo Drum, International, Support and Programs

Phone: (03) 8792 1469

Jo.Drum@ato.gov.au

Source:

Source:

[4166] Advice fees paid by superannuation funds

Title

Final Practical Compliance Guideline

Fees for personal financial advice paid from member accounts by superannuation funds – apportioning the deduction and pay as you go withholding obligations

Purpose

This Guideline sets out a methodology that superannuation funds (other than self-managed superannuation funds (SMSFs)) can use to determine the extent to which payments of financial advice fees satisfy paragraph (d) of table item 5 of subsection 295-490(1) of the Income Tax Assessment Act 1997.

It also outlines our compliance approach in relation to a superannuation fund’s obligation to withhold from payments for personal financial advice fees in the income years prior to 1 July 2019, including SMSFs.

Expected completion

To be advised

Comments

Draft Practical Compliance Guideline PCG 2025/D1 Fees for personal financial advice paid from member accounts by superannuation funds – apportioning the deduction and pay as you go withholding obligations published on 15 January 2025. Comments period closed on 14 February 2025.

Contact

Jay Gao, Public Groups

Phone: (02) 9374 5168

Jay.Gao@ato.gov.au

For more information, see Consultation matter [202421].

[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

Mid 2025Comments

Draft update LCR 2021/2DC1 published on 27 November 2024. Comments period closed on 24 January 2025. We are currently reviewing submissions.

Contact

Bonita Tsang, SEO

PAGSPR@ato.gov.au

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

Mid 2025Comments

The draft update to TR 2010/1DC2 published on 27 November 2024. Comments period closed on 24 January 2025.

TR 2010/1DC was withdrawn on 27 November 2024.

Contact

Bonita Tsang, SEO

PAGSPR@ato.gov.au

[4200] Administration of penalties that apply where employers or superannuation funds fail to comply with event-based reporting obligations [updated]

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

April 2025

Contact

PAGSPR@ato.gov.au

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

April 2025

Contact

PAGSPR@ato.gov.au

Source:

Source:

[3957] Taxation privileges and immunities of international organisations and persons connected with them

Title

Final Taxation Ruling

Income tax: income of international organisations and persons connected with them that is exempt from income tax

Purpose

The final Ruling will update the ATO view in Taxation Ruling TR 92/14 Income tax: taxation privileges and immunities of prescribed International Organisations and their staff (now withdrawn) following the High Court decisions in Macoun v Commissioner of Taxation [2015] HCA 44 and Commissioner of Taxation v Jayasinghe [2017] HCA 26.

Expected completion

To be advised

Comments

Draft Taxation Ruling TR 2019/D1 Income tax: income of international organisations and persons connected with them that is exempt from income tax published on 27 March 2019. Comments period closed 28 May 2019.

Draft Taxation Ruling TR 2024/D2 Income tax: exempt income of international organisations and persons connected with them published on 22 May 2024, replacing TR 2019/D1. Comments period closed 21 June 2024.

Contact

Simon Weiss, Office of the Chief Tax Counsel

Phone: (02) 6216 1943

Simon.Weiss@ato.gov.au

[4056] Decline in value of a depreciating asset

Title

Decision impact statement on Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2

Purpose

The Decision impact statement provides the ATO’s response to the Full Federal Court decision, which concerned whether the amount of the deduction available under section 40-25 of the Income Tax Assessment Act 1997 for the decline in value of a depreciating asset was the cost of that asset by virtue of the operation of section 40-80 of that Act.

Comments

The Decision impact statement on Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2 published on 31 January 2023. Comments period closed on 3 March 2023.

Contact

Nitin Gulati, Office of the Chief Tax Counsel

Phone: (02) 9285 1661

Nitin.Gulati@ato.gov.au

[4115] Personal services business and Part IVA

Title

Final Practical Compliance Guideline

Personal services businesses and Part IVA of the Income Tax Assessment Act 1936

Purpose

This Guideline explains when we are more likely to apply resources to consider the potential application of Part IVA of the Income Tax Assessment Act 1936 (the general anti-avoidance provisions of the income tax law) to an alienation arrangement where personal services income of an individual is derived through a personal services entity that is conducting a personal services business.

Expected completion

To be advised

Comments

Draft Practical Compliance Guideline PCG 2024/D2 Personal services businesses and Part IVA of the Income Tax Assessment Act 1936 published on 28 August 2024. Comments period closed on 11 October 2024.

Contact

Sally Cummins, Small Business

Phone: (07) 3213 3299

SBPAGConsultation@ato.gov.au

[4145] Application of section 109U to arrangements involving guarantees

Title

Final Taxation Determination

Income tax: Division 7A – does section 109U of the Income Tax Assessment Act 1936 only apply to arrangements where a private company gives a guarantee to another private company?

Purpose

This Determination sets out the ATO view on whether section 109U of the Income Tax Assessment Act 1936 can apply to arrangements in which a private company gives a guarantee to an entity that is not a private company (for example, a public company financial institution).

The Determination also references the ATO’s compliance approach to the application of section 109U.

Expected completion

To be advised

Comments

Draft Taxation Determination TR 2024/D3 Income tax: Division 7A – does section 109U of the Income Tax Assessment Act 1936 only apply to arrangements where a private company gives a guarantee to another private company? published on 11 December 2024. Comments period closed 31 January 2025.

Contact

Anthony Pulvirenti, Private Wealth

Phone: (07) 3213 8538

anthony.pulvirenti@ato.gov.au

[4165] Disregarding private company loan repayments

Title

Final Taxation Determination

Income tax: disregarding certain payments under section 109R of the Income Tax Assessment Act 1936 in determining how much of a loan has been repaid in situations where notional loans are involved

Purpose

This final Determination will set out the ATO’s view about the interaction of sections 109R and 109T of the Income Tax Assessment Act 1936, including whether section 109R of that Act can operate to disregard loan repayments in cases where there is a notional deemed loan because of sections 109T and 109W.

Expected completion

To be advised

Comments

Draft Taxation Determination TD 2025/D2 Income tax: disregarding certain payments under section 109R of the Income Tax Assessment Act 1936 in determining how much of a loan has been repaid in situations where notional loans are involved published on 5 March 2025. Comments period closes 17 April 2025.

Contact

Pri Wijesooriya, Private Wealth

Phone: (03) 9285 1262

Priyangi.Wijesooriya@ato.gov.au

[4169] Part IVA held not to apply to a scheme involving use of intra-group debt to acquire an Australian subsidiary productive of tax benefits in Australia

Title

Decision impact statement on Mylan Australia Holding Pty Ltd v Commissioner of Taxation (No 2) [2024] FCA 253

Purpose

This Decision impact statement outlines the ATO’s response to this case. The court concluded that the general anti-avoidance provision in Part IVA of the Income Tax Assessment Act 1936 did not apply to a scheme under which the applicant claimed deductions in Australia for interest and carry forward losses incurred from intra-group debt taken on to acquire an Australian subsidiary as part of the acquisition of a pharmaceutical business.

Comments

The Decision impact statement on Mylan Australia Holding Pty Ltd v Commissioner of Taxation (No 2) [2024] FCA 253 was published on 28 February 2025. The comments period closed on 28 March 2025.

Contact

Simon Weiss, Office of the Chief Tax Counsel

Phone: (02) 6216 1943

Simon.Weiss@ato.gov.au

[4194] Capital raised for the purpose of funding franked distributions

Title

Final Practical Compliance Guideline

Capital raised for the purpose of funding franked distributions – ATO compliance approach

Purpose

This Guideline sets out the ATO’s compliance approach to the assessment of the level of risk that a distribution is unfrankable under section 207-159 of the Income Tax Assessment Act 1997.

Expected completion

To be advised

Comments

Draft Practical Compliance Guideline PCG 2024/D4 Capital raised for the purpose of funding franked distributions – ATO compliance approach published on 4 December 2024. Comments period closed on 31 January 2025.

Contact

Virginia Gogan, Public Groups

Phone: (03) 8632 4643

Virginia.Gogan@ato.gov.au

[4201] Early stage innovation company schemes and Part IVA

Title

Final Taxation Determination

Income tax: application of Part IVA of the Income Tax Assessment Act 1936 to certain early stage innovation company investment arrangements

Purpose

This final Determination will provide the Commissioner’s view on whether Part IVA of the Income Tax Assessment Act 1936 applies to early stage innovation company (ESIC) schemes as described in Taxpayer Alert TA 2024/1 Early stage investor tax offset claimed using circular financing arrangements.

Expected completion

To be advised

Comments

The ATO is currently looking at arrangements designed to inappropriately access the ESIC incentives and other tax benefits.

Draft Taxation Determination TD 2025/D1 Income tax: application of Part IVA of the Income Tax Assessment Act 1936 to certain early stage innovation company investment arrangements published on 28 February 2025. Comments period closed 28 March 2025.

Contact

Kevin Hu, Office of the Chief Tax Counsel

Phone (03) 9247 0703

Kevin.Hu@ato.gov.au

Source:

Source: Northern Territory Police and Fire Services