Luxury Car Tax (LCT) 

  • The ATO has expressed concerns that several entities are using certain arrangements to improperly claim the refund for LCT.
  • It is reported that one of more of the participating entities (described as a ‘missing trader’) does not correctly report and pay the LCT to the ATO.
  • One of the participating entities artificially embeds the LCT in the price of the Car. The other participating entity will then seek to claim this amount as a refund.
  • The ATO has warned entities using these kinds of arrangements, as  LCT will be subject to increased scrutiny.


Trading Stock – Private use by Taxpayers

  • The ATO has advised that it will accept the estimates for the value of goods taken from trading stock for private usage in specified businesses (E.g., Restaurants & Bakeries).
  • The previous tax ruling relating to this has been withdrawn, where the ruling specified the notional amount to be considered for private usage.


Backpacker Tax to a UK National

  • The High Court ruled that the ‘Backpacker Tax’ doesn’t apply to the wages earned by a UK National in Australia.
  • This ruling applies even if the 183-day test is passed.
  • This ruling is supported with a ‘Non – Discrimination Clause’ in the Australia – UK Double Tax Agreement.


Scam Awareness – Tax Practitioners Board (TPB)

  • The TPB has been encouraging the tax practitioners to educate their clients about scams and ways to prevent them.
  • Some interesting facts from Scam watch:
  • 190,000 reports received with losses over $192 Million this year as of 31st August 2021. This is a 95% increase in losses since this time last year.
  • Over $96 Million have been lost so far this year due to investment scams where half of those are attributable to cryptocurrency.


Stapled Superannuation Fund Regime

  • Effective 1st November 2021, an employee having an existing account with a Superannuation Fund will be stapled and will follow the employee when they change jobs.