[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
Mid 2025
Comments
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
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 2025
Comments
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TR 2010/1DC was withdrawn on 27 November 2024.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
[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
Mid 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
Mid 2025