Accounting & Wealth Insights

From 1 July 2018, GST will apply to sales of low value imported goods (valued at A$1,000 or less) to consumers in Australia. These GST changes will also affect Australian GST-registered suppliers including Australian retailers who ‘drop ship’.

From 1 July 2017, those who purchase Australian real property or interests in such property valued at $750,000 or more from a non-resident vendor would be obliged to withhold a 12.5% non-final withholding tax from the purchase price and pay this to the ATO.

Directly held property makes up approximately 19% of all SMSF assets, indicating that many SMSF trustees consider it’s an important and significant part of a diversified portfolio.  There are numerous strategies and ways for property to form part of an SMSF’s investments and each must be carefully considered.

Recent media releases from the Australian Taxation Office (ATO) have stated that they intend to audit more people this coming year over work-related expenses.

It is best practice to review clients’ taxation affairs in advance of the year end to identify any tax planning opportunities that may exist. Good planning opportunities do not necessarily have to be most complex / innovative, simple strategies are often the most effective.

An entity cannot be registered for GST unless it is carrying on an enterprise (GST Act s 23-5; 23-10). The term “carrying on an enterprise” is defined in s 9-20 as an activity, or series of activities done in the form of a business.

To reduce pressure on housing affordability, downsizer contributions provide an incentive for super fund members aged 65 years or older to sell a main residence. The Treasury Laws Amendment (Reducing Pressure On Housing Affordability Measures No 1) Act 2017, which introduces downsizer contributions, received assent on 13 December 2017.