Advocacy and Media

The Institute of Financial Professionals Australia has been the voice of our members since 1919. We prepare submissions to the ATO, Treasury, and government departments on behalf of our members covering a range of issues including tax policy, administration and technical matters.

For any further information or media requests on the below please contact Head of Marketing & Membership Ky Wilson [email protected]

Below you will find a list of submissions & joint submissions with the most recent document at the top.

File Download / Link Details format size
 

9 February 2024
Our submission on objective of super – Senate inquiry

On 9/2/24, we provided our submission into the Superannuation (Objective) Bill 2023. This Bill was referred to the Senate Economics Legislation Committee for inquiry with a report due by 28 March 2024. In our submission to this inquiry, we outlined our concerns with legislating the objective of superannuation and also recommended a number of changes be made, including revisiting the sole purpose test, creating an objective for the whole retirement income system, and undertaking a holistic review of superannuation system.
 
Our association has also collaborated with Chartered Accountants Australia and New Zealand (CA ANZ) and the Institute of Public Accountants (IPA) on a joint submission on the objective of superannuation, which can be read alongside our own submission.
 .pdf 2.8 MB | 372 KB
 

9 February 2024
Our submission on retirement phase of super

On 9/2/24, we provided our submission on the ‘retirement phase of superannuation’ discussion paper. We recognise the need to optimise the retirement phase of superannuation and focussed our submission on how SMSFs may be impacted by the government’s proposed retirement income plans and products that may be constructed to help manage retirees risks in retirement. We also outlined suggestions for the retirement phase of superannuation which can be found in our submission and media release.


 .pdf  1.3 MB | 393 KB

25 January 2024
2024-25 Pre-Budget submission

On 25 January 2024, the Institute of Financial Professionals Australia submitted its 2024-25 Pre-Budget submission on tax, superannuation and financial services matters. In brief, we are calling on the Federal Government to review the tax and superannuation system. We believe the tax system is no longer fit for purpose and also believe there are a number of areas of the superannuation system that should also be reviewed given some measures have not been reviewed since inception and therefore no longer meet the needs of modern society. Our Pre-Budget submission sets out 10 tax related recommendations along with 16 superannuation and financial services proposals that could lead to a simpler, fairer and more equitable system for all Australians.

Further details regarding our recommendations can be found in our submission and media release.

 
 .pdf 320 KB | 353 KB
Exposure Draft:
Tax Agent Services (Code of Professional Conduct) Determination 2023
The Institute of Financial Professionals Australia welcomes the opportunity to provide this submission on the draft instrument.


To read the submission click here. 
 .pdf  401 KB

Consultation paper:
Enhancing the Tax Practitioners Board’s sanctions regime
The Institute of Financial Professionals Australia welcomes the opportunity to provide our submission on this important issue.


Read the Consultation Paper here.
 
 .pdf 405 KB
Another kick to Australian taxpayers
The Institute of Financial Professionals Australia is disappointed to note the Government’s intention, as outlined in the 2023-24 Mid-Year Economic and Fiscal Outlook (MYEFO ), to make the General Interest Charge (GIC ) and the Shortfall Interest Charge (SIC ) non-deductible where incurred in income years starting on or after 1 July 2025. 

To read the press release issued click here
 
.pdf   243 KB


Senate Economics Legislation Committee public hearing on NALE

On Monday 13 November 2023, our association was invited to appear before the Senate Economics Legislation Committee’s public hearing as part of its inquiry into Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023. Schedule 7 of the Bill which relates to changes to the non-arm’s length expense (NALE) rules was discussed. In brief, it was put forward to the government that the proposed legislation be withdrawn and the NALE and non-arm’s length income (NALI) rules be remedied as proposed by the industry groups.

You can read our supplementary submission here

pdf   372 KB
Our submission on payday super

On 3/11/2023, we provided our submission on the payday super regime. In brief, we support the change for employers to pay SG contributions at the same time they pay salary and wages and have proposed a ‘pay date’ regime that is similar to the ‘employer payment model’ as outlined in the consultation paper, however, a number of key differences/features exist.

 

A summary of our payday super model - key recommendations:

 
  1. Move to a ‘pay date’ (ie, payment date) model for SG contributions rather than a ‘due date’ (ie, receipt date) model

  2. Introduce a fairer and proportionate graduated penalty regime that will be lenient on accidental or inadvertent non-paying employers and harsh on deliberate non-paying employers

  3. Employers who make late SG contributions would pay interest on the late payments rather than the current system of receiving a SG charge assessment

  4. Late payments and interest would be deductible (currently they are not deductible)

  5. Non-payers would continue to receive SG charge assessments as is the case under the current system

  6. Superannuation clearing houses should be regulated so they are obligated to remit SG contributions on time under the pay date model

  7. Micro businesses to be exempt from the payday super regime and remain as quarterly SG contributors.

Further details regarding our recommendations can be found in our submission  and media release .

 

 pdf  469 KB

Our submission to the inquiry into the NALE provisions  

The Institute of Financial Professionals Australia welcomes the opportunity to provide this submission on the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023. Our submission is confined to Schedule 7 of the Bill which makes changes to the non-arm’s length expenses (NALE) rules that relate to superannuation funds.
Read our full submission and media release.

 .pdf  490 KB
Australian Small Businesses eagerly wait for much needed support 
The Institute of Financial Professional Australia is pleased that the Australian small business community is one step closer to receiving much needed support through certain tax measures that aim to help small businesses improve their cash flow and save on costs. 
 
Read the media release here.  
.pdf   221 KB

Our submission on the extra 15% tax for super balances over $3m

On 18 October, the Institute of Financial Professionals Australia provided its submission on the proposed extra 15% tax on superannuation balances above $3 million. We remain opposed to the extra tax due to the same reasons outlined in our earlier submission made to Treasury on 17 April 2023 and have urged the government to make five key amendments to the exposure draft legislation. One of the key recommendations is to remove unrealised capital gains from the calculation of earnings and instead use actual taxable income/earnings as a measure of earnings. Other recommendations include allowing losses to be refunded to offset any current tax liability, indexing the $3 million threshold, introduce an actual deferral regime to apply for the payment of the tax (including interest) to all funds (not just defined benefit funds), and exclude certain amounts from a member’s account balance.
 
Further details regarding our recommendations can be found in our submission and media release.
.pdf  1.8 MB
585 KB 
Proposed super tax far from ‘equitable’ policy
The Federal government’s newly released draft legislation on the extra 15% tax on superannuation balances above $3 million is far from being equitable policy, says Head of Superannuation and Financial Services Natasha Panagis.
 
Read the media release here.
 .pdf  204 KB
Legislating the objective of superannuation
While we fully support consistency in future policy making around superannuation, we do not support legislating the objective of superannuation. Our reasons for reaching this conclusion remain the same as our earlier submission made to Treasury on 28 March 2023 but with additional concerns now present. In brief, our view is that legislating the objective will not achieve any real purpose as it would not in any way be binding on current or future policy makers / governments and indeed could be completely ignored. We believe the answer to what the objective of superannuation is for already exists by way of the sole purpose test. We also have issues with the terms ‘equitable and sustainable’ as they could be a flag post for future changes to the superannuation system.
 
Our association has also collaborated with Chartered Accountants Australia and New Zealand (CA ANZ) and the Institute of Public Accountants (IPA) on a joint submission on the objective of superannuation, which can be read alongside our own submission.

Read our full submission and media release. The joint submission can also be read here.
 .pdf 446 KB
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Our submission on the NALE rules for super funds
On 7 July 2023, the Institute of Financial Professionals Australia (IFPA) provided its submission on the non-arm’s length expense (NALE) rules for superannuation funds. Although the proposed legislative changes to the NALE rules are an improvement to the initial proposal to tax NALE at a rate of 225% (ie, a five times multiple), we continue to oppose the concept of a multiple. We believe that a two times multiple approach which leads to an effective tax rate of 90% is not the correct way to deal with a general expense breach. Our view is that other changes should be made to the law to deal with non-arm’s length dealings.

Our submission and proposed range of alternative measures can be read here:
Submission    
Media Release  

.pdf  3.5 MB
978 KB 

Sladen Snippet - Treasury Releases Proposed NALE Changes
Treasury has released proposed legislative changes  to the non-arm’s length expenses (NALE) rules. While they are not as bad as the initial proposal to tax NALE at a rate of 225%, they are still not ideal. 

Under the proposed changes self managed superannuation funds (SMSFs) and small-APRA super funds (SAFs) will be taxed on general expense NALE on a 2 x multiple (ie an effective tax rate of 95%) on the undercharging/non-charging amounts of NALE.  Large APRA superannuation funds will be exempted from the NALE regime (for both general expense and specific expense NALE). SMSFs and SAFs will continue to pay a full 45% tax rate on specific expense NALE, while all superannuation funds will continue to pay full 45% rate on “normal” non-arm’s length income (NALI). 

There are many issues with the proposals and, no doubt, industry bodies will continue to push back against these unnecessary and disproportionate measures. For example see some of the following prior industry submissions:

To discuss this further or for more information please contact:

Phil Broderick
Principal
Sladen Legal
T +61 3 9611 0163  l M +61 419 512 801   
E [email protected]      

 .pdf  
Quality of Financial Advice review - recommendations adopted
The Government has announced that it will adopt the bulk of Quality of Advice review recommendations. The Government said that announced reforms aim to address the high cost of advice, to better protect consumers, to bolster ethical standards and to “ensure Australians can access helpful information that could make a meaningful difference to their quality of life in retirement”. The Government also said that it will develop legislation (“Delivering Better Financial Outcomes”) over the coming year, broken into 3 streams, as follows: Stream one – removing onerous red tape that adds to the cost of advice with no benefit to consumer; Stream two – expanding access to retirement income advice; and Stream three – exploring new channels for advice.

Read the media release here .

 .pdf  208 KB
Institute of Financial Professionals Australia urges government to
tackle comprehensive tax reform

In its 2023-24 Budget submission, the Institute of Financial Professionals Australia, has urged the government to address underlying structural Budget weaknesses by going beyond incremental change and undertaking comprehensive tax reform.

Read the full submission  and media release .

 .pdf 251 KB | 218 KB 
Our submission on the extra 15% tax for super balances over $3m

On 17 April 2023, the Institute of Financial Professionals Australia (IFPA) provided its submission on the proposed extra 15% tax on total superannuation balances above $3m. We do not believe that the government’s extra 15% tax proposal is the correct way to make the superannuation system fair and equitable for all Australians. If the tax settings must change for larger balances, we believe there are other options that can deliver a fairer superannuation system for all Australians. The obvious approach is for the extra 15% tax to be applied to actual taxable income (not unrealised gains). However, if the government retains its proposed measure, we strongly recommend changes are made to make the proposal equitable and fair.

Read the full submission and media release.

 .pdf  514 KB | 513 KB
Implementation of the Government's response to the Review of the Tax Practitioners Board

On 31 March 2023 the Institute of Financial Professionals (IFPA) continued to raise its concerns regarding the proposed changes to the Tax Agent Services Act 2009 contained in the Treasury Laws Amendment (2023 Measures No.1) Bill 2023 (see also IFPA’s submission on 11 December 2022 hyperlink). IFPA, together with other external professional association members of the Tax Practitioners Board (TPB) Consultative Forum, made a submission to Senator Jess Walsh, Chair, Senate Standing Committees on Economics.

To read the full submission please see attached.

.pdf  364 KB 
Joint submission on legislating the objective of superannuation

The Institute of Financial Professionals Australia along with two other associations wrote to Treasury on legislating the objective of superannuation. The Joint Bodies do not support the government’s proposed objective or the need to legislate it.

The Joint Bodies making this request were:

  • Chartered Accountants Australia & New Zealand
  • Institute of Financial Professionals Australia
  • Institute of Public Accountants

To read the full submission please see attached.

 .pdf  232KB
Legislating the objective of superannuation
While we fully support consistency in future policy making around superannuation, which should broadly be aimed at providing income/benefits for individuals and their dependents in retirement, we do not support legislating the objective of superannuation as proposed in the consultation paper. Our view is that legislating the objective will not achieve any real purpose as it would not in any way be binding on current or future policy makers / governments and indeed could be completely ignored. We believe the answer to what the objective of superannuation is for already exists by way of the sole purpose test.

To read the full submission and media release please see attached.
.pdf
.doc
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PCG 2022/D5: Classifying workers as employees or independent contractors
The Institute of Financial Professionals Australia provided its submission to the ATO on Draft Practical Compliance Guideline PCG 2022/D5: Classifying workers as employees or independent contractors - ATO compliance approach. While we welcome the draft PCG, we believe there are a number of improvements that could be made to the draft. In particular, the four risk zones require greater differentiation.

To read the full submission please see attached.
.pdf   360 KB
Joint submission and statement on non-arm’s length expense (NALE) rules for superannuation funds

The Institute of Financial Professionals Australia along with six other associations wrote to Minister, the Hon Stephen Jones MP, seeking urgent amendment to the superannuation non-arm’s length income (NALI) provisions.

The Joint Bodies making this request were:

  • Chartered Accountants Australia & New Zealand
  • CPA Australia
  • Institute of Financial Professionals Australia
  • Institute of Public Accountants
  • National Tax and Accountants Association
  • SMSF Association
  • The Tax Institute

To read the full submission and the joint media statement, please see attached.

Full submission
Joint media statement

 .pdf

 491 KB
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Submission on non-arm’s length expense (NALE) rules for superannuation funds
On 21 February 2023, the Institute of Financial Professionals Australia provided its submission on the non-arm’s length expense rules for superannuation funds. Our association does not support the proposals and proposes a range of alternative measures, which can be read in the attached document.

Further details regarding our recommendations can be found in our submission and media release.
 .pdf 857 KB
2023/24 pre-budget submission on superannuation issues
On 24 January 2023, the Institute of Financial Professionals Australia submitted its 2023/24 pre-budget submission on superannuation matters. We believe there are number of measures that can be introduced by the Government that will reduce red tape and help stimulate economic activity. We also believe there are number of bigger picture issues in the superannuation system that should be reviewed. There are many recommendations in our pre-budget submission, which can be read in the attached document. 

To read the full submission please see attached.
.pdf   876 KB
Implementation of the Government's response to the Review of the Tax Practitioners Board
On the 11 December 2022 the Institute of Financial Professionals (IFPA) together with other external professional association members of the Tax Practitioners Board (TPB) Consultative Forum made a submission in response to consultation on the Exposure Draft Treasury Laws Amendment (Measures for Consultation) Bill 2022 to Ms Laura Berger-Thomson, First Assistant Secretary Personal and Indirect Tax, Charities and Housing Division Treasury.

To read the full submission please see attached.
.pdf   448 KB
IFPA Response to ALRC
Executive Summary
The Institute of Financial Professionals Australia (IFPA) is an association that represents several elements of what the general public commonly regard as being professionals in the financial services industry in Australia. Those elements are taxation professionals, superannuation advisers and financial advisers.

For further information please see attached.
.pdf   816 KB
TSA opposes capping superannuation balances 
Tax & Super Australia (TSA) opposes the limiting of the size of account balances in superannuation funds.  

TSA Head of Superannuation Natasha Panagis said introducing a cap on superannuation balances will create more complexity and uncertainty in the system which will in turn deter individuals from planning for their retirement with confidence. 

To read the media release in full please see attached. 
.pdf   139KB
PCG 2022/D4
Tax and Super Australia (TSA) welcomes the opportunity to make a submission to the Australian Taxation Office (ATO) in relation to the draft Practical Compliance Guideline PCG 2022/D4 “Claiming a deduction for additional running expenses incurred while working from home – ATO compliance approach”.

Please find the full submission attached.
.pdf  209KB
TSA Budget Submission 2022-23

On 5 October 2022 Tax & Super Australia wrote to The Honourable Dr Jim Chalmers MP Treasurer regarding the 2022-23 pre-budget income tax matters noting that our members have an ongoing interest in the effective functioning of Australia’s tax system and that the pre-budget submission was being made by TSA on behalf of those interests.

Please find the full submission attached.

 .pdf  309KB
Fringe benefits tax record keeping exposure draft legislation

On 30 September 2022, Tax & Super Australia as an advocate for our members and the tax industry made a submission to Treasury in respect of exposure draft legislation released on 9 September 2022 intended to simplify fringe benefits tax record keeping requirements.

For further information please see attached.

 .pdf  318KB

More Section 100A Green Zone Examples

The ATO has released a paper with five additional examples which they propose to include in the green zone. The situations covered by these examples include where:

  • a loss trust or company beneficiary(s) are presently entitled to trust income and those beneficiaries are members of the same family group (as defined in the tax law) as the distributing trust. Where there is a loss beneficiary(s), it must continue to be solvent, particularly if the loss beneficiary(s) use the trust entitlement to fund an equity distribution
  • there is a time lag between when a beneficiary becomes entitled to trust income and that entitlement being satisfied – this is provided the lag does not exceed two years
  • there is a testamentary trust that is maintained for the benefit of an individual where the trustee reinvests income to which the individual is presently entitled, and
  • there is a business carried on by a trust where two generations of the same family manage that business.

Feedback is requested by 4 October 2022 and can be submitted by contacting Tax & Super Australia’s member services team on 03 8851 4555 9am - 5pm (AEST) Monday to Friday (excl. Public Holidays) or by emailing [email protected].

Example 1- Distributions involving a trustee undertaking a farming business
Example 2- Distributions to a loss company
Example 3- Time lag between a beneficiary becoming entitled and that entitlement being satisfied
Example 4- Time lag between a loss trustee beneficiary becoming entitled and that entitlement being satisfied
Example 5- Testamentary Trust

 .pdf  211KB
2022-23 pre-budget submission – superannuation issues

Tax and Super Australia believe there are number of measures that can be introduced by the Government that will reduce red tape and help stimulate economic activity. We also believe there are number of bigger picture issues in the superannuation system that should be reviewed. There are many recommendations in our pre-budget submission, which can be read in the attached document.

.pdf   404 KB
An open letter to members regarding 100A

Members have been raising questions about the options available in relation to 2021-22 trust distributions and respective resolutions in respect of adult beneficiaries, having regard to the draft guidance material released on 23 February 2022 by the Australian Taxation Office (ATO), (Draft Taxation Ruling TR 2022/D1, PCG 2022/D1 and Draft Taxation Determination TD 2022/D1- the ‘February Draft Guidance’) and the subsequent pronouncements made by both the government and the ATO.

For further information please see attached.

.pdf   116 KB
Incoming Government Brief 

On 3 June 2022 Tax & Super Australia wrote to the Treasurer, The Honourable Jim Chalmers MP, making note of the political, fiscal and social challenges the incoming government will need to consider in reforming tax and superannuation legislation that is a fundamental part of the economic and financial position of Australians and making a submission which is inclusive of a menu of tax and superannuation measures that require attention in the short-term, noting that there are a range of long-term, bigger picture issues that also need to be addressed (e.g. the expansion of the GST, a streamlining of the FBT regime, the simplification of the employee/contractor distinction, and reform in the taxation of closely held trusts).
For further information please see attached.

.pdf  321 KB
Draft Taxation Ruling TR 2022/D1

Further to our submission made dated 18 February 2022, on the 11 April 2022 Tax and Super Australia as an advocate for our members and the tax and superannuation industry, made a submission to the Office of the Chief Tax Counsel in respect of Section 100A regarding the draft Taxation Ruling – TR 2022/D1(‘the draft ruling’) issued on 23 February 2022 and in respect of the Commissioner’s (the Commissioner) opinion with regard to the application of section 100A ( Section 100A) of the Income Tax Assessment Act 1936 (ITAA 1936).
For further information please see attached.

 .pdf  155 KB
Draft Practical Compliance Guideline PCG 2022/D1

On behalf of Tax and Super Australia (TSA) and its members, and further to our submission made dated 18 February 2022 in respect of Section 100A, TSA has advocated for the industry in respect of the draft PCG and the Commissioner of Taxation’s (the Commissioner) opinion with regard to the application of section 100A of the Income Tax Assessment Act 1936 (Section 100A).
For further information please see attached.

.pdf  95 KB
Pre-Election Tax Submission
On the 3rd of March, Tax and Super Australia as an advocate for our members and the tax and superannuation industry, lodged a Pre-Election Tax Submission to the Prime Minister. The submission’s objective is to provide the Prime Minister, in the process of the formation of the next Government, with practical reform options which in the current circumstances will enhance the key pillars of sound taxation policy, including equity, administrative efficiency and transparency.
For further information please see attached.
 
 .pdf  108 KB
Request to finalise the Draft Taxation Ruling
On 18 February 2022, Tax and Super Australia made a submission to the Office of the Chief Tax Counsel to request to finalise the Draft Taxation Ruling on Section 100A of the Income Tax Assessment Act 1936 with particular reference to ‘ordinary family and commercial dealing’.
 .pdf  134 KB
TSA welcomes the passage of key super changes – 11/2/22
Tax & Super Australia (TSA) has welcomed the passage of legislation which aims to reduce complexity and make it easier for older Australians contribute to superannuation.

Several superannuation proposals announced in the 2021 Federal Budget were introduced into Parliament in the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021. This Bill has passed both houses of Parliament without amendment and awaits Royal Assent to become law.

To read the full submission please see attached.
 
 .pdf  17 KB
2022-23 pre-budget submission
Tax and Super Australia and The Self-managed Independent Superannuation Funds Association (SISFA) believe there are number of measures that can be introduced by the Government that will reduce red tape and help stimulate economic activity. We also believe there are number of bigger picture issues in the superannuation system that should be reviewed.

There are many recommendations in our joint pre-budget submission, which can be read in the attached document.
 .pdf  172 KB
Streamlining transfer balance cap event-based reporting arrangements for SMSFs
Tax and Super Australia and The Self-managed Independent Superannuation Funds Association (SISFA) believe that reporting transfer balance events to the ATO is an important process. In our joint submission to the ATO, our view is that transfer balance account reporting (TBAR) should remain on an annual basis, whilst still providing SMSFs with the option to report events as they occur rather than waiting for the due date. Moving to an annual reporting framework would reduce red tape and allow SMSFs to complete all their reporting at once – eg tax return, financial statements and TBAR.
Despite our preference for annual reporting, if the current quarterly regime is retained, we believe that SMSFs should be given until 1 July 2023 to report events to the ATO to allow SMSFs sufficient time to adjust to the more frequent quarterly reporting regime.
 .pdf  383 KB
New laws to add fairness to super splitting during divorce – January 2022
Tax & Super Australia (TSA) has welcomed the passage of legislation which improves the way superannuation is divided in family law proceedings.

The new law provides an information sharing mechanism between court registries and the ATO to improve the visibility of superannuation assets, allowing people to get access to proper information about their spouse’s superannuation assets.

For further information please see attached.
 
.pdf   17 KB

Joint submission on superannuation non-arm’s length income rules
Tax and Super Australia is part of a larger industry group (The Joint Bodies) which is in ongoing consultation with the ATO and Treasury. The Joint Bodies wrote to Senator Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy in early September 2021 seeking urgent amendment to the superannuation non-arm’s length income (NALI) provisions.

One of the main aims of this larger working group is to remove unintended NALI provisions. Rather than NALI applying blanketly to all income tainted by non-arm’s length dealings, The Joint Bodies believe that NALI should apply proportionately.

The Joint Bodies making this request were:
• Chartered Accountants Australia & New Zealand
• CPA Australia
• Institute of Public Accountants
• The Tax Institute
• Australian Superannuation Funds Association
• SMSF Association
• National Tax and Accountants Association
• Self-Managed Independent Superannuation Funds Association
• Financial Planning Association of Australia
• Tax & Super Australia
• Actuaries Institute

 .pdf  241 KB
Request for further lodgement deferrals in response to COVID-19 Crisis
Our members are telling us throughout the duration of the crisis, and in particular over the last three to four weeks, that they have been inundated with pressing requirements to assist their clients access the variety of Stimulus Package measures, including the Cash Flow Boost and JobKeeper Schemes.
We therefore request a deferral of the lodgement date for all 2018-19 income tax returns for individuals, companies, partnerships and trusts from 5 June 2020 to 30 June 2020. Accountants, tax practitioners, professional advisers and bookkeepers (i.e. tax practitioners) are critical to maintaining and supporting business and individuals (i.e. taxpayers) through the COVID-19 crisis. There are significant risks to the economy, the business operating environment, and the tax and superannuation systems if they are unable to operate.
.pdf 229 KB
Review of the Tax Practitioners Board, operation of the Tax Agent Services Act 2009, and Tax Agent Services Regulations 2009.
Significant challenges are faced by tax agents on a daily basis due to the complexity of the taxation laws, problematic administration of the taxation system, increasing administrative costs and price competition. The changes that will result from the Review must not result in yet more burdens being placed on tax agents. Increasing legislative and administrative pressures on tax agents will degrade the operation of the taxation system and discourage participants joining the industry.
.pdf 328 KB
Reinstatement of Accountants Exemption – Letter to Hon Jane Hume 17 July 2019 -1
Taxpayers Australia Limited, trading as Tax & Super Australia (TSA) is a not-for-profit organisation that has assisted accountants, taxation and superannuation professionals for over a century. TSA was established in 1919 to help promote a simpler and fairer tax system for all Australians. With a subscriber base of approximately 13,000 including 4,000 members, the organisation has evolved to meet the challenges of Australia’s modern tax regime and remain at the forefront of supporting accounting professionals.
.pdf 144 KB
Review of TSA’s submission to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry
Tax & Super Australia has concerns that our proposals for rectification of problems identified by our members involving issues in the Financial Services industry and the ASIC regulatory framework impacting on our members, which have caused economic distortions and costs to our members and their clients, have been overlooked. We seek that the Treasurer undertake the processes to ensure that shortcomings in the current regulatory arrangements are rectified, even though the Royal Commission did not specifically address these.
.pdf 66 KB
Pre-budget submission 2019-20
Our proposals for individual taxation include a tax offset for older workers to encourage mature age participation in the workforce. We also recommend a $2,000 standard work-related expense deduction with no substantiation required, as well as an increase in the reasonable limit threshold. Also we recommend a concessionally taxed regime for passive investments. On behalf of small businesses, we have asked for the proposed $25,000 instant asset write-off to be made permanent, and the re-introduction of the loss carry-back tax offset for SMEs.
There are many more recommendations in the Tax & Super Australia pre-budget submission, which can be read in the attached document. Our submission has been driven by the priorities and concerns of our members, while being premised on an overarching objective of achieving a suitable balance of fairness, efficiency and simplicity in the administration of the taxation system.
.pdf 1.2 MB
Submission regarding improving black economy enforcement and offences
Our submission has been driven by the priorities and concerns of our members, while being premised on an overarching objective of achieving a suitable balance of fairness, efficiency and simplicity in the administration of the taxation system.
Whilst we have reviewed the 26 questions put forward in the consultation paper and noted responses where applicable, we have also provided further information based on specific feedback from our members, which we consider is valuable input from a base actively involved in the tax profession.
.pdf 340 KB
Div 7a Submission
Submission regarding targeted amendments to Div 7A integrity rules including addressing concerns with the proposed significant interest rate increase for loans which are currently compliant and the potential adverse effects on cash flow for those concerned, particularly for currently compliant secured 25 year loans required to comply with a reduced 10 year term. The retaining of the distributable surplus rules and excluding UPEs arising prior to 16 December 2009 from Div 7A, retaining the “grandfathering” provisions for pre 1997 loans and supporting safe harbour provisions for Shareholder asset use.
.pdf 322 KB
Submission regarding review of tax residency rules for individuals
Our submission to the Board of Taxation has been driven by the priorities and concerns of our members, while being premised on an overarching objective of achieving a suitable balance of fairness, efficiency and simplicity in the administration of the taxation system. We acknowledge that the Board’s consultation guide contains 33 discussion questions – however, rather than address each single question, we have broadly commented on select issues based on our understanding of our stakeholder concerns.
.pdf 266 KB
Submission to Treasury Discussion Paper on Three-yearly audit cycle for some self-managed superannuation funds
TSA is highly concerned about the impact of this proposal on the integrity of the superannuation system in Australia. During a period of volatility where the financial services sector is facing the Royal Commission for inappropriate behaviour pertaining to self- managed superannuation funds, now is not the time to be moving away from annual, independent audits.
.pdf 176 KB
Submission to Royal Commission into Misconduct in the Banking Superannuation and Financial Services Industry
This submission considers: The unnecessary changes to the accounting profession are draconian and not based on sound analysis or facts; these regulations will result in substantially reduced competition in the provision of noncontroversial and generic advice on SMSFs and increased costs and fewer services; and there exist alternative means of regulation that will produce a better outcome at reduced costs without compromising the integrity of the service provided.
.pdf 1.8 MB
Draft Income Tax Ruling TR 2017/D10: Income tax: Trust vesting – amending the vesting date and consequences of a trust vesting
The Draft Ruling expresses the view (at paragraph 11 and 12) that, prior to a trust’s vesting, a Court may be prepared to extend the vesting date but that once the vesting date has passed this would no longer be possible. However, that view appears to be at odds with the comments at paragraph 13 – that is, that the Commissioner understand that it would be unlikely that a Court would extend the vesting date once the vesting date has passed. The Professional Bodies would ask that the Commissioner review these paragraphs and clarify his views in this respect.
.pdf 139 KB
2018-19 pre-budget submission (December 2017)
Our proposals for individual taxation include a tax offset for older workers to encourage mature age participation in the workforce. We also recommend a $2,000 standard work-related expense deduction with no substantiation required, as well as a concessional tax rate for passive investments. On behalf of small businesses, we have asked for the $20,000 instant asset write-off to be retained in addition to an amnesty for pre-1997 Division 7A loans. In regards to superannuation, we have asked for specific improvements to the new laws as well as online tools to help taxpayers understand and comply with the new super rules. There are many more recommendations in the Tax & Super Australia pre-budget submission, which can be read in the attached document.
.pdf 4.6 MB
Submission to the Treasury: legislation relating to Budget measures tackling the Black Economy
This submission was in response to the draft legislation released by the Treasury. We re-iterate our overarching position as well as commenting on the legislation.
.pdf 1.9 MB
Submission to the Treasury on Black Economy
This submission was in response to the consultation paper released by the Black Economy Taskforce. We re-iterate our overarching position as well as discussing our support for federal government initiatives.
.pdf 1.8 MB
Review into the future of the tax profession (July 2017)
Our proposals surrounding the opportunities, risks and challenges presented by new developments, strategies to assist the tax profession, opportunities available to both the Australian Taxation Office and the Tax Practitioners Board as well as other concerns we have in relation to the future of the tax profession.
.pdf 8.8 MB
Review into the Australian Taxation Office’s fraud management control (July 2017)
Our proposals regarding systems and operations at the ATO and community confidence in the ATO in light of recent events.
.pdf 4 MB
 Draft Taxation Determination TD 2016/D4 & TD 2016/D5 (10 March 2017)
Income tax: does the residency assumption in subsection 95(1) of the Income Tax Assessment Act 1936 (ITAA 1936) apply for the purpose of section 855-10 of the Income Tax Assessment Act 1997 (ITAA 1997), which disregards certain capital gains of a trust which is a foreign trust for CGT purposes?
Income tax: where an amount included in a beneficiary’s assessable income under section 99B(1) of the Income Tax Assessment Act 1936 (ITAA 1936) had its origins in a capital gain from non-taxable Australian property of a foreign trusts, can the beneficiary offset capital losses or a carry-forward net capital loss (‘capital loss offset) or access the CGT discount in relation to the amount?
.pdf   197 KB
Submission to House of Reps Standing Committee on Tax & Revenue (Feb 2017)
Our proposals regarding taxpayer engagement, the role of the tax practitioner, the reliance and stability of the ATO’s online services, connectivity for rural taxpayers and practitioners, and the cash economy.
.pdf 180 KB
 Draft Taxation Ruling TR 2017/D1 (3 March 2017)
Income tax: composite items and identifying the depreciating asset for the purposes of working out capital allowances
 .pdf  131 KB
 Draft Taxation Determination 2016/D6 & 2016/D7 (6 Feb 2017)
Where an Australian corporate tax entity is a partner in a partnership, can the partnership ‘hold’ a direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936) in a foreign company for the purpose of Subdivision 768 A of the Income Tax Assessment Act 1997 (TD 2016/D6).
Draft Taxation Determination 2016/D7: where an Australian corporate tax entity is a beneficiary of a trust, can the trust be taken to ‘hold’ a direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936) in a foreign company for the purpose of Subdivision 768 A of the Income Tax Assessment Act 1997 (TD 2016/D7).
.pdf   303 KB
TSA’s 2017-18 pre-budget submission (January 2017)
Our proposals for individual taxation include a tax offset for older workers to encourage mature age participation in the workforce. We also recommend a $2,000 standard work-related expense deduction – no substantiation required. On behalf of small businesses, we have asked for the $20,000 instant asset write-off to be retained and a $10 million eligibility threshold for the small business CGT concessions. Superannuation changes are big news right now, and we have asked for specific improvements to the new laws as well as online tools to help taxpayers understand and comply with the new super rules. There are many more recommendations in the Tax & Super Australia pre-budget submission, which can be read in the attached document.
.pdf 713 KB
 Draft Practical Compliance Guideline PCG 2016/D16 (9 Dec 2016)
Fixed trusts.
.pdf   53 KB
Substantiation exception for reasonable travel allowance expenses (Nov 2016)
This submission was in response to the ATO’s discussion paper (QC50217) on the ways it could improve its guidance and administrative practices in relation to the substantiation exception for reasonable travel allowance expenses.
.pdf 160 KB
Superannuation reform package (Sept 2016)
This submission was in response to the exposure draft legislation released by the Treasury. The exposure drafts were in relation to the following measures: the objective of superannuation, tax deductions for personal superannuation contributions, improve superannuation balances of low income spouses, introduce a Low Income Superannuation Tax Offset (LISTO) and harmonising contribution rules for those aged 65-74.
.pdf 2.2MB
 Draft Taxation Determination TD 2016/D1 (9 Sept 2016)
Income tax: is a redemption payment received by a worker under the Return to Work Act 2014 (SA) assessable income of the worker?
.pdf   279 KB
Taxation Ruling TR 2016/D1 (20 May 2016)
Income tax: deductibility of expenditure on a commercial website.
 .pdf  33 KB
Law Companion Guideline LCG 2016/D2 & LCG 2016/D3 (6 May 2016)
Law Companion Guidelines: Small Business Restructure Rollover: consequences of a roll-over and genuine restructure of an ongoing business.
.pdf   176 KB
Practical Compliance Guideline PCG 2016/D1 (22 April 2016)
Practical Compliance Guidelines: purpose, nature and role in ATO’s public advice and guidance.
.pdf   25 KB
Law Companion Guideline LCG 2015/D (15 April 2016)
Law Companion Guidelines: purpose, nature and role in ATO’s public advice and guidance.
.pdf   123 KB
Review into the ATO’s employer obligations compliance activities (Dec 2015)
This submission was in response to the IGT’s review into ATO employer obligation compliance activities. We thank our members for their participation and responses.
.pdf 8.2 MB (zipped)
IGT External scrutiny of the ATO submission
Taxpayers Australia has called for the appointment of a board of directors to the Australian Taxation Office (ATO) and increased powers for the Inspector-General of Taxation.
.pdf 1144 KB
IGT: debt collection
It appears to Taxpayers Australia that the high level of ATO debt is largely a problem of the ATO’s own making.
.pdf 291 KB
IGT: Support for Tax Practitioners
As most of our members are part of smaller practices (and many are sole practitioners), there was a degree of frustration that the ATO fails to understand the pressures which they sometimes put on smaller practitioners.
.pdf 397 KB
Treasury: TFN withholding
Taxpayers Australia agrees with the policy intent of the TFN withholding regime for closely-held trusts. However, under amendments, we have reservations in relation to the compliance burden and the practical difficulties which may be placed on trustees and their tax advisers as proposed.
.pdf 160 KB
Treasury: Financial System Inquiry
The FSI provides a number of recommendations in relation to superannuation which we have
addressed in the accompanying submission.
.pdf 414 KB
ATO: GSTR joint submission
The Professional Bodies welcome the opportunity to comment on Draft Goods and Services Tax Ruling Addendum GSTR 2001/8DA (Draft Addendum).
.pdf 413 KB
ATO: Draft PSLA joint submission
The Joint Bodies reiterate the view that the Ruling contradicts the underlying policy intent of Division 7A and, in particular, Subdivision EA.
.pdf 184 KB
ATO: SMSF disclosure
Superannuation Australia believes that the SMSF sector is currently appropriately regulated
and performing well for SMSF trustees. We are not convinced of the need to massively
increase the regulatory burden on the SMSF sector, particularly SMSF trustees.
.pdf 217 KB
ATO: Bitcoin and FBT
Where Bitcoin is considered to be a form of currency, then PAYG withholding will apply and no FBT will apply.
.pdf 164 KB
ATO: Bitcoin and GST
The following submission examines some issues of construction and interpretation in relation to GST concepts that impact the way ‘Bitcoin’ transactions are dealt with under the GST.
.pdf 217 KB
ATO: Bitcoin as trading stock
We agree with the view expressed in the Ruling section of the draft TD (paragraph 1) that Bitcoin, when held for the purpose of sale or exchange in the ordinary course of a business, is trading stock for the purposes of subs70-10(1) – with possible qualifications.
.pdf 164 KB
ATO: Bitcoin and CGT
In our submission on TD 2014/D11, we disagree with the Commissioner’s preliminary view that Bitcoin is not ‘foreign currency’ for the purposes of Division 775 and not ‘foreign currency’ as defined in s995-1.
.pdf 164 KB