Australia: Financial arrangements tax; wine-producers rebate; worker housing GST credits

Australia: Financial arrangements tax; WET; GST credits

The KPMG member firm in Australia has prepared reports concerning the following developments (read more at the hyperlinks provided below):


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  • Unclaimed superannuation, risk issue: Superannuation providers are required to transfer certain amounts of “unclaimed superannuation money” (USM) (except for defined benefit interests) to the Australian Taxation Office including small accounts with balances below a threshold belonging to “lost members.” A proposal to increase the account balance threshold for USM may have implications and risk management issues for providers. 
  • Taxation of financial arrangements (TOFA): Given the focus on commercial and economic substance, there may be fact patterns when two (or more) sequential contracts must be aggregated into a single arrangement—notwithstanding that the earlier contact may have terminated and ceased to exist upon the inception of the second contract. Taxpayers need to evaluate that all factors have been considered for existing and new financial arrangements, especially given that an incorrectly bifurcated arrangement could even lead to TOFA gains being prematurely brought to account.
  • Wine equalisation tax, rebates: Winemakers can claim a rebate of up to AUS $500,000 per year in respect of the wine equalization tax (originally intended as a measure to benefit small wineries operating in regional locations). It has been reported that in a number of circumstances, taxpayers may be claiming rebates in unintended circumstances.
  • GST credits for worker housing: The Full Federal Court dismissed a taxpayer’s appeal regarding its claim for goods and services tax (GST) credits for costs incurred in providing housing to workers in the Pilbara region. 

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