Discretionary Trusts in NSW: The rules are changing: ‘Foreign Persons’, stamp duty and land tax
Discretionary Trusts, commonly known as Family Trusts have become popular for tax planning purposes.
Amendments to the NSW Duties act from 31st December 2020 require Discretionary Trusts to specifically prevent a foreign person from becoming a beneficiary or surcharge purchaser duty and surcharge land tax may be payable for properties either acquired or held by the trust.
What you need to do
If your trust owns property or may purchase property in the future, you should review your trust deed. You may need to amend the trust deed by 31st December to avoid being liable for a foreign person surcharge.
Loss Carry Back – what does this mean for your business
This year’s federal budget saw the re-introduction of the loss carry-back rules. Companies with an annual turnover of less than $5 billion dollars will be allowed to carry back losses from the years 2020 to 2022 against profits from the years 2019 to 2021.
Profits from FY 2018- 2019 can be offset by losses from FY’s 2020, 2021 and 2022
Profits from FY 2019-2020 can be offset by losses from FY’s 2021 and 2022
Profits from FY 2020-2021 can be offset by losses from FY 2022
If you are unsure how you can apply the Loss Carry Back provisions speak to us today.
Job Keeper Update
The ATO has begun its compliance reviews of businesses who have received Job Keeper.
Recent media reports suggest that ATO have already sent 8,000 letters to businesses advising they may have to repay JobKeeper payments due to ineligibility or failure to provide adequate supporting documentation.
The ATO is also looking to match prior year financials and tax returns with current period financials to ensure there is no manipulation of data. If you enrolled and lodged your Job Keeper declarations without external advice it may be prudent to get a second opinion.