In December 2015 The Australian Taxation Office (ATO) stated that it would not take active steps to review non-commercial limited recourse borrowing arrangement (LRBA) loans prior to 30 June 2016.  It was recommended that LRBA loans should be put on arm’s length terms by 30 June 2016. If that occurred then the ATO had stated that it would not actively review such non-commercial LRBAs for prior years.

The Fair Work Ombudsman (FWO) has, for the first time, commenced legal proceedings against an accounting firm alleging the firm was knowingly involved in underpaying its client’s workers.

Three Fair Work Commission General Manager reports were tabled in the House of Representatives this week. These reports presented research findings for the period May 2012–May 2015. Key findings of each report are as follows.

The Fair Work Commission (FWC) has found a labour hire company (the employer) unfairly dismissed an employee after the host employer told the employer it did not want the worker at its workplace.

In a recent decision of the Fair Work Commission an employer was praised by the Commission for not rushing to a decision to terminate.  The employee was a habitual latecomer and worked as a motor vehicle detailer.  He had been given six previous written warnings as well as many verbal warnings by the employer. 

The Victorian government today announced the Long Service Leave Act 1992 (Vic) (Act) is under review. The government is seeking public input in its examination of whether the Act is ‘meeting the needs of the modern workplace’.

A recent Tribunal decision serves as a reminder to employers that the mere existence of workplace policies is insufficient to protect employers from employee claims. If a workplace policy is not effectively communicated to staff, an employer may be found vicariously liable for the actions of its employees, even when the employer has no active role in the prohibited behaviour.

The Australian Tax Office (ATO) has released a Draft Addendum to a current GST Ruling (GSTR 2012/3) regarding the GST treatment of care services and accommodation in retirement villages and privately funded nursing homes and hostels.

The Private Ancillary Fund and Public Ancillary Fund Amendment Guidelines 2015 (amending guidelines) propose to amend the currentPrivate Ancillary Fund Guidelines 2009 and the Public Ancillary Fund Guidelines 2011 (together, the Guidelines), with the changes to apply from 1 July 2016.  The Guidelines set minimum standards for the governance and conduct of ancillary funds and their trustees, breach of which can result in a revocation of charitable and/or concessional tax status.  Therefore, trustees of ancillary funds need to familiarise themselves with these changes.