Australian Taxation & Compliance Updates

In the healthcare services industry, it is now common for some practitioners to operate from healthcare centres run by third parties. This frequently occurs without any stated partnership or employment relationship between the third party and the practitioner.

The ATO has updated its guidance on simplified transfer pricing record keeping options to include the minimum interest rate of 3.79% for small related party outbound loans for the 2018 year. Paragraph 75 of Practical Compliance Guideline PCG 2017/2 has been updated to reflect the new rate.

It sounds strange, but the FBT law is full of exemptions and concessions. The FBT law was introduced way back in 1986 with the intention to tax non-cash fringe benefits. But in doing so, the law has allowed for exclusions, concessions, reductions and exemptions.

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.

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.