2023 completed issues
This page will display a list of completed public advice and guidance issues for the 2023 year.
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[3932] Taxing US and UK resident financial institutions under US and UK taxation conventions
Purpose
This Addendum clarifies certain aspects of the second limb of the definition of 'financial institution', which is used in Australia's double-tax conventions with the US and the UK.
Outcome
The Addendum to Tax Ruling TR 2005/5 Income tax: ascertaining the right to tax United States (US) and United Kingdom (UK) resident financial institutions under the US and the UK Taxation Conventions in respect of interest income arising in Australia published on 17 May 2023.
[3964] Appointment of capital – CGT events E5 or E7
Purpose
This Determination was proposed to set out the Commissioner’s view on the CGT consequences of appointing an amount of capital to a beneficiary and the subsequent distribution of Australian currency to the beneficiary in satisfaction of the capital interest.
Outcome
This item was removed from the Advice under development program. It was assessed as having insufficient priority to warrant progressing as a public advice product at this time.
[3965] Australian currency denominated asset – CGT events E5 to E7
Purpose
The Determination was proposed to set out the Commissioner's view on whether assets with a face value in Australian currency (including Australian currency itself) can be CGT assets for CGT events E5 to E7.
Outcome
This item was removed from the Advice under development program. It was assessed as having insufficient priority to warrant progressing as a public advice product at this time.
[3966] Unit trust – CGT events E5 to E8
Purpose
The Determination was proposed to set out the Commissioner’s view on what is a ‘unit trust’ for CGT events E5 to E8 and its implications for other CGT events.
Outcome
This item was removed from the Advice under development program. It was assessed as having insufficient priority to warrant progressing as a public advice product at this time.
[3971] Self-managed super funds – rectification directions
Purpose
This Practice Statement provides guidance to ATO staff on the relevant matters to be considered when deciding whether to give a trustee or a director of a body corporate that is a trustee of a self-managed super fund a written rectification direction under section 159 of the Superannuation Industry (Supervision) Act 1993.
Outcome
Law Administration Practice Statement PS LA 2023/1 Self-managed superannuation funds – rectification directions for contraventions of the Superannuation Industry (Supervision) Act 1993 published on 30 March 2023.
[3972] Self-managed super funds – education directions
Purpose
This Practice Statement proposed to provide guidance to ATO staff on the relevant matters to be considered when deciding whether to give a trustee or a director of a body corporate that is a trustee of a self-managed super fund a written education direction under section 160 of the Superannuation Industry (Supervision) Act 1993.
Outcome
Publication of this product has been delayed by the current lack of approved education courses. We are not proceeding with this product at this time and will recommence working on this issue when we have confirmation an approved education course is available.
[3975] Super benefits in breach of rules
Purpose
Both a practice statement and taxation determination were proposed to
- provide guidance on the Commissioner's discretion as set out in subsection 304-10(4) of the Income Tax Assessment Act 1997, which may be applied where superannuation benefits are received in breach of legislative requirements, and
- set out the Commissioner’s view on the income tax treatment of a superannuation benefit received by an individual otherwise than in accordance with the payment standards prescribed under subsection 31(1) of the Superannuation Industry (Supervision) Act 1993, where the Commissioner exercises the discretion contained in subsection 304-10(4) of the Income Tax Assessment Act 1997.
Outcome
Draft TD 2021/D6 Income tax: tax treatment of a superannuation benefit when the Commissioner exercises the discretion in subsection 304-10(4) of the Income Tax Assessment Act 1997 and draft PS LA 2021/D3External Link Superannuation - Commissioner's discretion where members receive benefits in breach of legislative requirements published on 15 December 2021.
This issue was however removed from the Advice under development program in May 2023. We need to further consider comments received and technical issues identified after draft TD 2021/D6 was published, and this work is on hold due to other higher priority work. This topic will be reinstated to the Program when work recommences.
[3984] Non-arm's length expenditure
Purpose
The final update to Tax Ruling TR 2010/1 will explain the interaction between the non-arm's length income provisions and the rules concerning superannuation contributions.
Outcome
This issue was removed from the Advice under development program in May 2023. Treasury issued a consultation paper Non-arm's length rules for superannuation fundsExternal Link, which closed for comment on 21 February 2023. Work is not progressing on this issue until the outcomes from this consultation are known. This issue will be reinstated to the Program once we recommence work on it.
[4023] Excise refund scheme – meaning of 'legally and economically independent'
Purpose
This Ruling sets out the Commissioner's view of the meaning of ‘legally and economically independent’ for the purposes of the excise refund scheme for alcohol manufacturers under item 21 of subclause 1(1) of Schedule 1 to Excise Regulation 2015 and the excise remission scheme for alcohol manufacturers under item 10 of subclause 2(1) of Schedule 1 to Excise Regulation 2015.
Outcome
Excise Ruling ER 2023/1 Excise: the meaning of 'legally and economically independent' published on 24 May 2023.
[4036] Beneficiary's share of the net income of a trust estate – present entitlement
Purpose
This Addendum amends TD 2012/22 to take account of the decision in Lewski v Commissioner of Taxation [2017] FCAFC 145.
Outcome
The AddendumExternal Link to Taxation Determination TD 2012/22 Income tax: for the purposes of paragraph 97(1)(a) of the Income Tax Assessment Act 1936 is a beneficiary's share of the net income of a trust estate worked out by reference to the proportion of the income of the trust estate to which the beneficiary is presently entitled? published on 31 May 2023.
[4038] Car parking fringe benefits
Purpose
Following the decision by the Full Federal Court in Commissioner of Taxation v Virgin Australia Regional Airlines Pty Ltd [2021] FCAFC 209, Taxation Ruling TR 2021/2 has been amended to confirm the Commissioner’s views on the meaning of ‘primary place of employment’ for the purposes of the car parking benefit provisions in the Fringe Benefits Tax Assessment Act 1986.
Outcome
The Addendum to Taxation Ruling TR 2021/2 Fringe benefits tax: car parking benefits published on 22 February 2023.
Purpose
This Decision impact statement outlines the ATO's response to the Full Federal Court's decision in Commissioner of Taxation v Virgin Australia Regional Airlines Pty Ltd [2021] FCAFC 209 concerning the interpretation of ‘primary place of employment’ in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 when read with the extended meaning of ‘business premises’ in subsection 136(2) of that Act.
Outcome
The comments period for this Decision impact statement has closed, and no updates will be made. Work continues on updating impacted advice and guidance and guidance outlined in the decision impact statement.
[4047] GST treatment of financial supplies
Purpose
This Addendum updated the Ruling to reflect changes in the GST law (for instance, changes to the GST legislation applicable to cross-border supplies and in relation to digital currency) and contains changes to modernise parts of the Ruling.
Outcome
The Addendum to Goods and Services Tax Ruling GSTR 2002/2 Goods and services tax: GST treatment of financial supplies and related supplies and acquisitions published on 22 March 2023.
[4052] Working from home deductions
Purpose
The Guideline outlines a practical compliance approach, referred to as the revised fixed-rate method, applicable from 1 July 2022, which taxpayers can use to calculate their deduction for certain working from home expenses.
Outcome
Practical Compliance Guideline PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home – ATO compliance approach published on 16 February 2023.
[4058] GST margin scheme to the sale of multiple interests in land
Purpose
This Decision impact statement provides the ATO’s response to the Full Federal Court decision on Commissioner of Taxation v Landcom [2022] FCAFC 204 as well as the preceding first instance decision, which concerned the application of the GST margin scheme to the sale of multiple interests in land in a single transaction and the scope for judicial review of rulings relating to notional GST issues.
Outcome
This Decision impact statement originally published on 15 March 2023 and updates were made following the closure of the comments period. .
This page will display a list of completed public advice and guidance issues for the 2023 year.