Hot Issues
spacer
Single Touch Payroll – 1 April 2018 Action
spacer
Property investors on notice after ATO spots false claims
spacer
ATO issues update on cryptocurrency compliance traps
spacer
Australia's vital statistics
spacer
Accountants spy elder abuse spike as mortgage stress sets in
spacer
Tax office releases fresh guidance on SMSFs
spacer
Labor's tax plans could favour the rich, analysis shows
spacer
FBT Reminder – Odometer Reading
spacer
Our website is really our digital office.
spacer
‘Substantiation will be a key focus’: ATO drums in tax time 2018 hit list
spacer
Super changes: $1.6 million transfer balance cap and death benefit pensions
spacer
Payroll, compliance issues top dodgy practices in Aussie business
spacer
Employee travel expense deductions
spacer
The Goldilocks effect - Economic and market update 4Q 17
spacer
Tax assessments confirmed for undisclosed business income
spacer
Super returns on the up despite clients’ hesitation
spacer
Australia. All you need to know to be the expert.
spacer
Business confidence hits 5-month high: NAB
spacer
Caution advised on best interests duty with cryptocurrencies
spacer
$20,000 asset write-off renewed for another financial year.
spacer
SMSF compliance traps with bitcoin
spacer
Where Australia is at. Our leading indicators.
spacer
Foreign resident CGT withholding: early recognition of tax credit
spacer
ATO set to doorknock as 60% of cash-heavy businesses caught
spacer
New downsizing cap available
Article archive
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Capital Gains and Renounceable Rights

In a small win, the taxation of renounceable rights offers (in some cases) will be concessionally treated following a recent Australian Taxation Office ruling.

       

 

The taxation of rights and premiums paid to retail shareholders has improved where those shares are held on capital account.

If the shareholder is an Australian resident then there is no assessable income on the timing of the grant of the entitlement and any retail premium received, can be treated us the realisation of a CGT asset.  Most years at least one large public company structure an equity deal to provide this opportunity to its shareholders – in 2016 it included Origin, in 2017 it included Boral, JB Hi-Fi, and Vocus Communications.

The right to be issued shares is a CGT asset, which if no action is taken and the resultant is sale by the company and subsequent premium is paid to the shareholder, capital gain will result.  What is more significant is that the shareholder is considered to have required the rights when it acquired the original shares.  There is a discount capital gain (i.e. 50%) if the shares were held for twelve months or longer.

 

AcctWeb