The rezoning of Victorian lands after 1 July 2023 may be subject to windfall gain tax (WGT) in certain situations. The pertinent question is the treatment of this tax for CGT and GST purposes.
In this article we summarise the key facts and findings of the recent Federal Court decision in Morton’s Case. It provides important guidance regarding the mere realisation of a capital asset in the context of a large scale residential subdivision where land was acquired and held long term for farming before entering into a development agreement.
The FRCGW rules were introduced in 2016 as a way to ensure that foreign residents pay tax on the sale of certain Taxable Australian Real Property. Here’s a summary of what has changed and practical ramifications.
Goodwill is a single CGT asset. As a business grows it may undertake a wider range of activities. This article explores whether goodwill from the expanded business is a separate and distinct CGT asset, or simply an expansion of the existing business goodwill?
The maximum net asset value test is designed as a snapshot taken just before the CGT event. A previously rented holiday home shouldn’t affect its exclusion status if it is being used solely for the owner’s personal use leading up to the relevant CGT event. However, the ATO holds a different view. This article examines whether the ATO’s stance warrants a reassessment.
There is a misconception that all unit trusts are fixed trusts. Perhaps it is because a beneficiary’s income and capital entitlements are based on their unitholdings rather than being dependent on the trustee discretion to appoint income/capital. The tax ramifications for misclassifying a unit trust as ‘fixed’ could in certain circumstances be detrimental. This article seeks to highlight potential implications for misclassification.
When an individual moves overseas there may be flow on capital gains tax consequences. A change in tax residency status may result in the individual taxpayer being denied any main residence exemption if they were to sell their former Australian residence while being a foreign resident. In this article, we highlight some important considerations.
CGT event E4 can also be triggered by tax timing adjustments. In certain circumstances this could lead to double taxation for unitholders. This article explores an example situation where double taxation could arise.
Attention to detail is paramount when giving tax advice. This was most relevant in a recent case regarding the use of similar terms in the small business CGT concessions. The question was about access to the small business 15-year exemption.
Most practitioners agree that the rules for access to the SBCGT concessions are inherently complex. This article seeks to explore some of these complexities, specifically satisfying the significant individual requirement and the importance of timing where passively held assets are used in a business of a connected entity.
