Notice of Rulings 30 March 2022

Administered by Department of the Treasury

Legislation au F2022N00073 In force Notifiable Instrument

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The Commissioner of Taxation, Chris Jordan, gives notice by notifiable instrument under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 of the following public rulings, copies of which can be obtained from ato.gov.au/law

NOTICE OF RULINGS
Ruling number	Subject	Brief description
CR 2022/29	NPP Australia Limited – scrip for scrip roll‑over	This Ruling sets out the income tax consequences for Australian-resident holders of redeemable preference shares in NPP Australia Limited in relation to the acquisition of those shares by Australian Payments Plus Ltd. This Ruling applies from 1 July 2021 to 30 June 2022.
CR 2022/30	BPAY Group Holding Pty Ltd – scrip for scrip roll‑over	This Ruling sets out the income tax consequences for Australian-resident holders of ordinary shares in BPAY Group Holding Pty Ltd in relation to the acquisition of those shares by Australian Payments Plus Ltd. This Ruling applies from 1 July 2021 to 30 June 2022.
CR 2022/31	Swick Mining Services Ltd – in specie distribution of Orexplore Technologies Limited shares	This Ruling sets out the income tax consequences of the in specie distribution of Orexplore Technologies Limited shares issued to Swick Mining Services Ltd shareholders on 7 January 2022. This Ruling applies from 1 July 2021 to 30 June 2022.
CR 2022/32	Victorian Department of Health – early retirement scheme 2022–2023	This Ruling sets out the income tax consequences of an early retirement scheme implemented by the Victorian Department of Health. This Ruling applies from 31 March 2022 to 30 June 2023.
CR 2022/33	Magmatic Resources Limited – return of capital by distribution of shares in Australian Gold and Copper Ltd	This Ruling sets out the income tax consequences of the reduction of share capital by Magmatic Resources Limited which was satisfied by the transfer of shares in Australian Gold and Copper Ltd to Magmatic Resources Limited shareholders on 31 December 2020. This Ruling applies from 1 July 2020 to 30 June 2021.

Ruling number	Subject	Brief description
PR 2022/3	AIA Australia Limited – Priority Protection – income protection insurance cover	This Ruling sets out the tax outcomes for the defined class of entities in relation to certain benefits under an Ordinary Income Protection Plan issued by AIA Australia Limited. This Ruling applies to entities that enter into the defined scheme from 1 July 2021 until 30 June 2024.
TD 2022/2	Fringe benefits tax: reasonable amounts under section 31G of the Fringe Benefits Tax Assessment Act 1986 for food and drink expenses incurred by employees receiving a living away from home allowance fringe benefit for the fringe benefits tax year commencing on 1 April 2022	This Ruling sets out the amounts that the Commissioner considers reasonable, under section 31G of the Fringe Benefits Tax Assessment Act 1986, for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit for the fringe benefits tax year commencing on 1 April 2022. This Ruling applies from 1 April 2022 to 31 March 2023.
TD 2022/3	Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing on 1 April 2022?	This Ruling sets the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing on 1 April 2022. This Ruling applies from 1 April 2022 to 31 March 2023.

NOTICE OF ADDENDA
Ruling number	Subject	Brief description
LCR 2016/12	Superannuation reform: total superannuation balance	This Ruling has been amended to reflect changes arising from the Treasury Laws Amendment (Self Managed Superannuation Funds) Act 2021. This Addendum applies from 1 July 2021.
TR 93/25	Income tax: assessability of proceeds from illegal activities, treatment of amounts recovered and deductibility of fines and penalties.	This Ruling has been amended to take into account developments in the law since it was issued. The Ruling confirms that income from illegal activities that is gained by an entity directly in pursuit of its own income‑producing activities is assessable and that deductions are generally allowable for payments of restitution and repayments if they are connected to the gaining or producing of illegal income at the time they are incurred. This Addendum applies from 15 December 2021.

Overview

The Taxation Administration Act 1953, enacted by the Australian Parliament, serves as the foundational legislation for the administration of taxation laws in Australia. This Act was introduced to streamline and formalise the processes related to the collection and enforcement of tax laws. One of its key roles is to provide the legal framework for the Commissioner of Taxation to issue public rulings and determine the tax consequences of specific transactions and schemes. The policy objective behind this Act is to ensure that taxpayers understand their obligations and the tax implications of their financial dealings, thereby promoting transparency and compliance within the tax system. The notifiable instrument F2022N00073, issued under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953, notifies the public of various rulings that outline the tax consequences of certain financial transactions and schemes, effective from specified dates, thereby guiding taxpayers on their tax liabilities.

Scope and Application

The F2022N00073 Notifiable Instrument, published on 30 March 2022, encompasses several public rulings issued by the Commissioner of Taxation, Chris Jordan, under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953. These rulings detail specific income tax consequences related to various transactions and schemes, applying to Australian residents, entities, and shareholders involved in particular transactions such as scrip-for-scrip rollovers, in specie distributions, early retirement schemes, and return of capital. The rulings cover a range of industries, including financial services, health services, and mining. The geographic reach of these rulings is national, applicable across Australia, and they are effective from specified dates ranging from 1 July 2021 to 30 June 2023. While the rulings set out clear guidelines for the specified transactions, they do not explicitly mention any exclusions or thresholds. The application of these rulings may be extended or modified through subordinate instruments, which could provide further clarification or adjustments to the guidelines provided.

Key Provisions

The key provisions of the F2022N00073 notifiable instrument involve several public rulings and an addendum to earlier rulings, issued under the authority of the Commissioner of Taxation. The public rulings (CR 2022/29 to CR 2022/33, PR 2022/3, and TD 2022/2 and TD 2022/3) provide specific guidance on the income tax consequences of certain transactions and schemes, such as scrip for scrip rollovers, in specie distributions, early retirement schemes, returns of capital, and fringe benefits tax considerations for food and drink expenses and the private use of motor vehicles. Each ruling specifies the relevant period of application, ranging from July 2021 to June 2023, or in the case of the addendum, from July 2021 to June 2021. The addendum to Ruling LCR 2016/12 updates the guidance on superannuation reforms, while the addendum to Ruling TR 93/25 clarifies the tax treatment of illegal activities, including the assessability of proceeds and the deductibility of fines and penalties. The obligations imposed by these rulings are primarily informative, aiming to provide taxpayers with clear guidance on how certain transactions will be treated for tax purposes. For instance, CR 2022/29 to CR 2022/33 outline the tax consequences for specific transactions, ensuring taxpayers understand their obligations when engaging in these activities. Similarly, PR 2022/3 and TD 2022/2 and TD 2022/3 provide details on tax outcomes related to income protection insurance and fringe benefits tax, respectively. These rulings assist taxpayers in complying with their tax obligations by providing specific rules and rates that must be followed. In terms of potential consequences for non-compliance, while the notifiable instrument itself does not specify penalties, breaches of the tax laws in general can result in significant penalties and consequences. For example, under the Income Tax Assessment Act 1997, penalties can include fines up to the greater of $5,250 or 50% of the unpaid tax, along with additional interest charges on the unpaid tax. In more serious cases, criminal penalties can apply, including imprisonment for offences such as tax evasion or fraud. It is essential for taxpayers to adhere to the guidance provided in these rulings to avoid such penalties and ensure compliance with tax obligations.

Area of Law: Taxation Law
Instrument: Notifiable instrument
Concepts: Definitions & Interpretation; Reporting & Disclosure Obligations; Offence Provisions

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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