Legal Insights
Intercompany vs. Unintentional Div 7A Loans: Lessons from Traynor & Ors v Federal Commissioner of Taxation
In Traynor & Ors v Federal Commissioner of Taxation [2026] ARTA 2024, the Administrative Review Tribunal has confirmed that amounts recorded in financial statements as loans, which do not have corresponding formalised loan agreements, will be treated as dividends for the purpose of Division 7A of the Income Tax Assessment Act 1936 (Cth). Businesses that operate as a corporate group must be aware and consider the risk of intercompany transfers being characterised as a Div 7A loan.
Stop, Drop or Roll: The New Minimum Tax & Options for Trustees
Treasury’s exposure drafts provide trustees of discretionary trusts three options in relation to the new 30% minimum tax on taxable income: (1) stop trying to avoid and pay the tax, (2) drop the trust into an excluded election trust election or (3) roll-over relief. This article details the strict conditions the latter two options carry.
Anything to Declare? Moving Foreign Superannuation to an Australian Fund
Australians returning home with overseas superannuation or pension benefits have two main options in relation to transferring those entitlements into the Australian superannuation system. Prior to making a withdrawal or transferring those benefits, members should consider their tax and succession planning objectives.
Two Bites, One Bill: Subsequent Acquisitions Deemed Subsequently Dutiable – Lessons from ISPT v CSR
The Supreme Court of Victoria in ISPT Pty Ltd v CSR [2026], has confirmed that the Commissioner of State Revenue can impose duty, where a unit holder acquires two separate interests in a public unit trust, on the aggregate amount of those interests.
Sky High Land Tax: How Nominating a Purchaser May Trigger Additional Duty
In Sky Jade Corporation Pty Ltd v Commissioner of State Revenue (Vic) [2026] VCAT 421, the Victorian Civil and Administrate Tribunal confirmed that nominating a purchaser under a standard contract of sale of land will trigger additional duty if land development occurs prior to settlement. The Tribunal also confirmed that a nominee, nominated pursuant to a sale of real estate nomination form, will be considered to have obtained a right to have property transferred to the nominee, satisfying the legislative requirements for additional duty.
Kicked to the Curb: Changes to Limited Recourse Borrowing Arrangements
Limited recourse borrowing arrangements, or LRBAs, provided self-managed superannuation funds with the opportunity to borrow funds from a lender to purchase property. However, from 10 August 2026, LRBAs are now limited to the acquisition of business real property, effectively excluding residential property from the arrangements.
Post Budget Tax Changes: Are SMSFs Now More Effective Than Discretionary Trusts?
Handed down on 12 May 2026, the 2026-27 Federal Budget was notably uneventful for self-managed superannuation funds. Importantly, it left key superannuation concessions unchanged, including the one-third capital gains tax discount available for complying superannuation funds. In contrast, the proposed introduction of a 30% minimum tax on taxable income of discretionary trusts has strengthened the relative tax advantages of superannuation, reinforcing its importance wealth structuring and effective tax planning vehicle.
Back Track and Carve Out – Testamentary Trusts Excluded from 30% Trust Tax
The 2026-27 Federal Budget proposed to introduce a 30% minimum tax on taxable income of discretionary trusts from 1 July 2028. The original proposal raised concerns as it was suggested to apply to discretionary testamentary trusts, potentially affecting trusts established by a will for a legitimate succession planning purpose. Following consultation, the Government has amended the proposal to exclude genuine testamentary trusts from the new minimum tax, subject to integrity requirements to ensure that they are designed for a legitimate purpose.
Lock up your superfunds – Div 296 is here!
Australia has just entered the first financial year that will be affected by the Div 296 legislation. Members of superannuation funds (SMSFs, retail and industry) with balances that exceed $3 million and $10 million are now subject to an additional tax.
There’s a Hole in My Bucket…The Budget’s Minimum Tax on Discretionary Trusts and Bucket Companies
The announcement of the 30% minimum tax payable by trustees of discretionary trusts has drawn significant attention. However, for discretionary trusts with corporate beneficiaries, beware of double tax.
Victorian Land Tax and Trust Classification: Lessons from R.C. Land Management Pty Ltd v Commissioner of State Revenue
The Victorian Supreme Court’s decision in R.C. Land Management Pty Ltd v Commissioner of State Revenue [2026] VSC 49 confirms that the classification of trusts for land tax purposes must be determined by the rights and obligations contained in the trust deed of the trust, rather than by administrative reference or reclassification.
![Acquisition of control over private landholders and the Duties Act -Tao v Commissioner of State Revenue [2025] VSC 831](https://images.squarespace-cdn.com/content/v1/62940022bdc06b31c5ba0c30/1773957951120-LOLXNL3CEOSFCCGQBIF5/unsplash-image-PJ7lpdVOIzc.jpg)
Acquisition of control over private landholders and the Duties Act -Tao v Commissioner of State Revenue [2025] VSC 831
In January, the Supreme Court of Victoria handed down judgment against an applicant who had become the sole director of a company acting as trustee of a unit trust which held property in Victoria valued over $1 million. The Supreme Court confirmed the Commissioner of State Revenue’s assessment that the applicant acquired ‘control’ over the landholder and made a relevant acquisition for the purposes of the Duties Act. It was held the applicant made a relevant acquisition in the landholder of 100%.
![Vacant Residential Land Tax and ‘Uninhabitable’ Property – KES v Commissioner of State Revenue [2026] VCAT 75](https://images.squarespace-cdn.com/content/v1/62940022bdc06b31c5ba0c30/1773276127976-WC1MLGW9EMRZ9PMZMF66/unsplash-image-BwxcLsNXR3g.jpg)
Vacant Residential Land Tax and ‘Uninhabitable’ Property – KES v Commissioner of State Revenue [2026] VCAT 75
The matter of KES v Commissioner of State Revenue [2026] VCAT 75 considered whether the property in question was both ‘residential land’ and ‘vacant’ as defined in the Land Tax Act 2005 (Vic) and therefore, whether vacant residential land tax had been correctly applied by the Commissioner. The Victorian Civil and Administrative Tribunal found that despite the property being in disrepair, it was capable of being used for residential purposes and had been vacant for at least six months in the relevant land tax year.
Victorian Government - Proposed Imposition of Stamp Duty on Adjustments made for Land Tax and Windfall Gains Tax
The Commissioner of State Revenue has released draft revenue ruling, Draft-DA-70: Land Transfer Duty – Consideration – Assumption of Tax Liabilities (Draft Ruling) seeks to impose land transfer (stamp) duty on adjustments made for certain taxes at settlement of a property transaction, by treating those adjustments as dutiable consideration.
Sim – Victorian Foreign Purchaser Additional Duty Triggered by the Spouse of an Australian Citizen
Foreign purchasers living within Australia must be aware of important requirements to fulfill a section 69AJ exemption under the Duties Act 2000 (Vic). The case of Sim v Commissioner of State Revenue [2025] VCAT 349 highlights how all requirements of section 69AJ must be met to receive an exemption to the foreign purchaser additional duty.
New Penalty Tax for Recklessness
The Victorian Government has introduced a new 50% penalty tax for cases of recklessness under state tax laws, as part of the 2025–26 State Budget measures. This penalty applies where a taxpayer or their advisor is found to have acted recklessly, causing a tax shortfall or failing to meet notification requirements.
Previously, penalties ranged from 25% (negligence) to 75% (intentional disregard). There are concerns that this new penalty could be unfairly applied in complex cases, especially involving trusts or foreign interests, where rules are often misunderstood.
Gift and Loan Arrangements – There is more you should know
When considering asset protection, gift, loan and mortgage arrangements are a key strategy, particularly in the context of protecting assets against creditor or insolvency claims as well as parents providing financial assistance to adult children. The effectiveness of the strategy relies upon ensuring that that agreement is correctly documented and implemented.
The implications of Malcolm on Land Tax Joint Assessment
The recent decision of Malcolm v Commissioner of State Revenue [2025] VCAT 218 has impacted the State Revenue Office’s interpretation of section 38(2) of the Land Tax Act 2005 (Vic).
The Impacts of Division 296 – Is it coming back?
While some industry voices call for a deferral, with Labor’s recent election win and more favourable senate, commentators have raised that it could be likely that the proposed Division 296 tax will commence on 1 July 2025.
Affected individuals should evaluate whether to act now or wait, depending on personal circumstances. Options include withdrawing super before or after the start date or doing nothing if modelling shows better long-term outcomes. Each option should be carefully considered based on individual’s financial situations.
HA Housing Insights: Tax considerations for tackling the housing crisis with Brian Farrelly, Pitcher Partners
In this HA Housing Insights series, we shine a spotlight on the housing crisis and speak with key industry experts to gain a comprehensive understanding of the challenges faced in delivering housing outcomes and potential solutions.
In the fifth instalment of our HA Housing Insights series we speak with Brian Farrelly, Partner and Executive Director at Pitcher Partners Melbourne within the Tax Advisory Group to hear his views.