Australian Taxation & Compliance Updates

As of 1 July 2018, under this reporting system, businesses in the courier industry and the cleaning industry are required to report payments they make to contractors (individual and total for the year) to the ATO. The reporting system previously was only operational for the building and construction industry.

All states in Australia have (or will) implemented surcharges on foreign investors in the residential property market. The following is a state-by-state breakdown for foreign purchasers, including the specific definitions and exclusions which apply in each jurisdiction.

A credit may be refunded in the relevant tax return if they don’t have to pay capital gains tax on the sale of the property (for example, because it was their main residence).

The ATO has advised that it intends to issue the following guidance on 25 July 2018: Taxation Determination TD 2018/14 Income tax: what is the benchmark interest rate applicable for the year of income that commenced on 1 July 2018 for the purposes of Division 7A of Part III of the Income Tax Assessment Act 1936 and how is it used?

Did you know of the capital gains tax exemption available for the disposal of pre-CGT properties (originally acquired by the deceased before 20 Sep 1985) within 2 years from the deceased date of death?

The Commissioner has set out the amounts considered to be reasonable in relation to claims made by employees for the 2018/19 income year for.

The law treats residents and non-residents differently, where residents are taxed on all worldwide income but non-residents are taxed only on Australian sourced income.