Notice of Rulings and Withdrawal of Rulings 2 July 2025

Overview

The Commissioner of Taxation, Rob Heferen, has issued a notifiable instrument under the Taxation Administration Act 1953 to notify the public of new rulings and the withdrawal of previous rulings. The instrument, dated 2 July 2025, introduces two new public rulings, CR 2025/43 and CR 2025/44, which detail the income tax implications of return of capital and dividend distributions for shareholders of Otto Energy Limited and FAR Ltd, respectively. Additionally, the instrument includes an addendum to Taxation Ruling TR 97/7, clarifying the timing of deductions for losses and outgoings, and the withdrawal of Taxation Determination TD 2019/11, which dealt with reasonable travel and overtime meal allowance expenses for the 2019-20 income year. This action is taken to ensure taxpayers are aware of the most current tax obligations and interpretations of tax law.

Scope and Application

The notice of rulings and the withdrawal of rulings issued by the Commissioner of Taxation on 2 July 2025 pertains to specific public rulings and their applicability under the Taxation Administration Act 1953. The rulings and their amendments apply to specified taxpayers and cover particular income tax issues relevant to the transactions and periods mentioned. For example, CR 2025/43 and CR 2025/44 address the income tax consequences of return of capital and dividend distributions for shareholders of Otto Energy Limited and FAR Ltd, respectively, within the period from 1 July 2024 to 30 June 2025. The addendum to TR 97/7 clarifies the timing of deductions for losses incurred by taxpayers, effective from the date of issue. Conversely, TD 2019/11, concerning reasonable travel and overtime meal allowance expenses for the 2019-20 income year, is withdrawn as its effective period has expired, although it remains legally binding for the relevant period. These rulings apply within the Commonwealth of Australia and may be further extended or restricted through subordinate instruments as necessary.

Key Provisions

The notifiable instrument F2025N00519 issued by the Commissioner of Taxation on 2 July 2025 provides notice of certain public rulings and the withdrawal of others. Section 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 mandates these notifications, which pertain to income tax consequences for specified taxpayers. Public Ruling CR 2025/43 addresses the return of capital and dividend distribution to shareholders of Otto Energy Limited on 16 June 2025, effective from 1 July 2024 to 30 June 2025. Similarly, Public Ruling CR 2025/44 outlines the tax implications for shareholders of FAR Ltd who received a return of capital payment on 12 June 2025, also applicable from 1 July 2024 to 30 June 2025. The notifiable instrument imposes obligations on taxpayers and the Commissioner of Taxation. For taxpayers, these rulings provide clarity on their tax obligations regarding specific financial transactions. For the Commissioner, the obligations include issuing these rulings to ensure taxpayers are properly informed and can comply with their tax obligations. The rulings must be published and made available to the public on the ATO website, as per the legislative requirements. The notifiable instrument also includes an addendum to Taxation Ruling TR 97/7, clarifying the timing of deductions under section 8-1 of the income tax law, particularly the distinction between losses and outgoings. This addendum applies to situations both before and after its issuance, ensuring that taxpayers and the Commissioner understand the correct application of these provisions. Further, the instrument announces the withdrawal of Public Ruling TD 2019/11, which related to the reasonable travel and overtime meal allowance expense amounts for the 2019-20 income year. The withdrawal is due to the expiration of its effective date. Despite the withdrawal, TD 2019/11 will remain legally binding on the Commissioner for the period to which it originally applied. Breach of the obligations under this notifiable instrument may result in civil or criminal consequences, depending on the nature of the non-compliance. While the specific penalties are not detailed in the text, breaches of tax rulings and determinations can generally lead to penalties under the Taxation Administration Act 1953. These may include fines and, in severe cases, criminal prosecution. Taxpayers are expected to adhere to the rulings and addendum to ensure compliance with their tax obligations.