Birchstone Brief for the week ended 14 April 2023

ATO Updates

FHSS Scheme Guidance Updated

The ATO has updated its guidance on the operation of the First Home Super Saver (FHSS) Scheme to take account of recent legislative amendments and clarify the Commissioner's view that an individual may acquire equitable rights in real property even before settlement of a contract (which may affect their eligibility for the Scheme). As such:?

• LCR 2018/5A2 has been issued, which amends LCR 2018/5; and
• GN 2018/1 has been updated accordingly.?

Super rates and thresholds updated?

The ATO has published key superannuation rates and thresholds for the 2023-24 income year. Notably, the updates confirm that the general transfer balance cap will increase from $1.7 million to $1.9 million from 1 July 2023. As discussed in the Birchstone Brief for the week ended 27 January 2023, this is the first time the cap will have increased by a $200,000 increment.?

Transfer balance account reports to be lodged quarterly from 1 July 2023

The ATO has announced that, from 1 July 2023, SMSF trustees must report events affecting their members' transfer balance accounts on a quarterly basis.?

No more paper forms for SMSF rollovers

The ATO has confirmed that, from 30 June 2023, it will no longer accept applications from SMSF trustees to use paper forms to record rollovers to and from their SMSF. As such, all rollovers will now need to be processed via an electronic service address from an SMSF messaging provider that provides rollover services.

Class and product rulings issued

The ATO has issued:?

• CR 2023/17 - Australia and New Zealand Banking Group Ltd - ANZ Capital Notes 8;?
• CR 2023/18 - InterContinental Energy Australia Pty Ltd - Employee share option scheme - InterContinental Energy Holdings Group Ltd 2021 Omnibus Incentive Plan;?
• PR 2023/3 - PPS Mutual Professionals Choice - Profit-Share Plan; and?
• PR 2019/7A3?- Addendum to PR 2019/7?- Income tax: PPS Mutual Professionals Choice - 2019.?

Cases

Appeals

E Group Security's special leave application rejected

The High Court has dismissed the taxpayer's application for special leave to appeal against the New South Wales Court of Appeal's decision in Chief Commissioner of State Revenue (NSW) v E Group Security Pty Ltd (No 2) [2022] NSWCA 259. In that case, the Court of Appeal ruled that the taxpayer was liable to payroll tax in relation to?arrangements between itself and 3 related companies which constituted?“employment agency contracts” within the meaning of section 37 of the?Payroll Tax Act 2007?(NSW).?

Legislation

Revenue Legislation Amendment Bill 2022 (ACT) receives assent

This Bill, which:

• amends the Duties Act 1999 (ACT) to improve the administration and operation of the ACT landholder duty regime; and
• makes other minor and technical amendments to the Duties Act and the Land Tax Act 2004 (ACT),

was passed by the ACT Legislative Assembly on 22 March 2023 and became law on 11 April 2023.?

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