Amendments to section 102AG and testamentary trusts – has the baby gone out with the bath water?

Treasury Laws Amendment (2019 Measures No. 3) Act 2019 (Cth) received assent on 22 June 2020. It amends section 102AG of the Income Tax Assessment Act 1936 in relation to taxation of minors in receipt of income from a testamentary trust.  The purpose of the amendment was to reduce revenue leakage [...]

2020-08-19T10:16:29+10:00August 19th, 2020|

Testamentary trusts and reimbursements agreements – do I actually have to pay my children?

Background Section 100A of the Income Tax Assessment Act 1936 (ITAA 1936) provides that where there is a deemed reimbursement agreement between the trustee and a beneficiary, then, instead of the beneficiary being taxed on that income, it is the trustee who is taxed at the maximum marginal tax rate plus [...]

2020-08-19T10:16:17+10:00August 19th, 2020|

The Goldilocks Trust® – providing for the blended family in a testamentary discretionary trust

Background It is a tired trope in estate planning practice that the most difficult family to provide a certain and secure estate plan for, is the blended family. The spouses wish to provide for each other, but they also wish to provide for their own children who are not the children [...]

2020-08-19T10:16:01+10:00August 19th, 2020|

Gifts to not-for-profit organisations for electoral purposes

Under the Electoral Act 1992 (Qld) (Act) it is now unlawful for a "prohibited donor" to make a donation for political purposes and also for a person to accept such a donation. Effectively political donations from property developers and industry bodies, which have property developers as the majority of their members, [...]

2020-08-16T16:33:47+10:00August 16th, 2020|

Payroll tax and tax exempt employment agents

A Queensland decision in Compass Group Education Hospitality Services[1] concerned employment agents who argued that because their clients were exempt from payroll tax, wages paid to their employees for providing services to their clients were not subject to payroll tax. In this case, wages paid by 2 organisations were exempt from [...]

2020-08-16T16:37:13+10:00August 16th, 2020|

Don’t sign a merger agreement before checking your bequests

Charitable organisations that are merging or winding up subsidiary enterprises should carefully consider if this will impact on current bequest distributions. The recent Victorian case of In Re Estate of Henry Brough Smith[1] stands as an example of how common this issue is becoming in the era of mergers and rationalisations. [...]

2020-08-16T16:40:00+10:00August 16th, 2020|

When payroll errors become ‘wage theft’

Apart from being an ugly term, 'wage theft' has the potential to severely damage an organisation's reputation and place its ongoing viability at significant risk. A 2019 KPMG report put the annual figure for wage theft in Australia at more than $1.35 billion, affecting an estimated 1 million workers. It found [...]

2020-08-16T16:44:21+10:00August 16th, 2020|

Duties of members of charities – Lehtimäki & Ors -v- Cooper

The Children’s Investment Fund Foundation (CIFF) was set up in 2002 with an endowment of about $5bn (US) by Sir Christopher Hohn and Jamie Cooper. The breakdown of their marriage created challenges in administering the charity.  However, a divorce settlement in 2014 agreed that CIFF should make the grant to Big [...]

2020-08-16T16:48:23+10:00August 16th, 2020|
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