New Tax Treaty with Japan

Main changes to the treaty and the treaty itself can be viewed on the links below The treaty with Japan will enable Australian companies to export their skills and services into what is traditionally our largest export market and the fourth largest destination of Australian investment abroad.

> view Treaty
> view main changes

Wealthy and Wise: a tax guide for Australia’s wealthiest people

On 31 March 2008 the ATO released an information booklet entitled "Wealthy and wise:
a tax guide for Australia's wealthiest people which reminds taxpayers that they are responsible for their own tax affairs, regardless of the advice they have received, and poses a series of questions to consider to ensure that they are in the low risk tax category.

> view booklet

High Court starts GST tax case hearing

CANBERRA, April 15 AAP - The High Court today begins hearing a case which will decide whether GST is payable on a $25,000 real estate property deposit forfeited when the sale fell through. Some tax experts suggest the case could have wide-ranging implications for the GST, providing a clearer definition of what constitutes the supply of goods and services. It has potential implications for various cancellation, late and other-type fees.

Certain Borrowings by Self Managed Superannuation funds under review

The Tax Office has issued a taxpayer alert warning trustees to be cautious about entering into certain limited recourse borrowings to acquire assets for their self managed super fund (SMSF).

Certain features of limited recourse borrowings from a related party to a trustee may not comply with borrowing requirements under superannuation laws.

> read more

For further information, please contact your local Sothertons office.

Reducing the Super Red Tape Burden on Business

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, today announced the introduction into Parliament of Tax Laws Amendment (2008 Measures No. 2) Bill 2008 which will provide fairer treatment for employers who make super contributions after the due date.

This Bill will ensure late contributions still count towards reducing the required superannuation guarantee payments of an employer. These changes mean employers will not have to pay the same amount twice.

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APRA and ASIC reminder about foreign insurance business

The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) are jointly reminding direct offshore foreign insurers (DOFIs) and local insurance brokers about the new authorisation requirements for foreign insurers that come into effect on 1 July 2008.

Following the passage of the Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Act 2007 on 13 September 2007, DOFIs wishing to continue operating in the Australian market must be authorised by APRA. The new authorisation requirements are designed to ensure that Australian policyholders have the security of Australia’s strong prudential regime for general insurers and are protected from dealing with unauthorised DOFIs that would not meet the standards required of an APRA-authorised insurer.

> read more