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    Cryptocurrency ATO Data matching program

    The Commissioner has given notice that it will collect data from cryptocurrency designated service providers, under notice, to identify individuals or businesses who have or may be engaged in buying, selling or transferring cryptocurrency during the 2014/15 to 2019/20 financial years.

    The purpose of this data matching program is to ensure that taxpayers are correctly meeting their taxation and superannuation obligations in relation to cryptocurrency transactions and ownership. These obligations may include registration, lodgment, reporting and payment responsibilities.

    Please contact this office if you have any questions in respect of cryptocurrency. Read more Financial Industry articles.

    Martin van der Saag
    Partner
    T: 02 9984 7774
    E: martinv@northadvisory.com.au

    Dividend imputation

    The Australian Labor Party (ALP) has announced an intention in government to change franking credits from a refundable to a non-refundable tax credit from 1 July 2019.

    A “Pensioner Guarantee” would be included in the franking credit change for individuals in receipt of an Australian Government pension or allowance. Also, self-managed superannuation funds with at least one pensioner or allowance recipient before 28 March 2018 will also be exempt from the changes (ALP website).

    Negative gearing

    Under an ALP government, negative gearing will only be allowed on newly constructed residential properties after 1 January 2020 (ALP website).

    All prior investments would be grandfathered, meaning that income losses on an asset class are able to be offset against other assessable income.

    It has been suggested that any negative income amounts would be allowed to be carried forward and offset against a future capital gain on the asset (Ref: MinterEllison, p 5).

    However, investors with many rental properties may be able to “stagger” the gearing levels across currently held assets in the same class. Specifics relating to how the new policy would work with regards to split loans, redraw or credit facilities are to be determined.

    CGT discount

    From 1 January 2020, the ALP has proposed to halve the capital gains tax discount from 50% to 25%. This change in the discount rate will apply for all assets purchased after 1 January 2020 that are held for longer than 12 months (ALP website).

    The media release goes on to say that all purchases made prior to 1 January 2020 will be fully grandfathered. There has been no announcement regarding any consequences this development may have on employee share scheme acquisitions.

    Limit on deductions for managing tax affairs

    The proposal in its current form is a $3,000 limit per taxpayer per year for managing tax affairs. This may include preparing and lodging tax returns and activity statements, and obtaining tax advice from a recognised tax adviser.

    Other areas which have been seen as controversial in the media relate to tax agent charges in large “one-off” events, such as divorce, inheritance or retirement (Ref: CPA In the Black). Also, there has been no further guidance on whether the deductibility of general interest charge on a tax debt will also be limited to $3,000 per year.

    Discretionary trust distributions tax

    A prior announcement made by the ALP in opposition intends to introduce a 30% standard minimum rate of tax to adult beneficiaries for discretionary trusts. There intends to be no change to the trust taxing rules for non-discretionary trusts, such as testamentary trusts or fixed unit trusts (ALP website).

    Extension of budget repair levy

    Following the 2019 Federal Budget, the ALP confirmed that, in government, they will bring back the temporary budget repair levy of 2%. ALP shadow treasurer stated the levy would remain in place until the budget surplus was 1% of gross domestic product, anticipated to be 2023 (AFR story, 3 April).

    The 2% levy would apply to individuals who are above $180,000 in taxable income.

    Australian Investment Guarantee

    The ALP leader confirmed in the 2019 budget reply speech a commitment to the Australian Investment Guarantee (AIG). The AIG will be an immediate write-off of 20% for any new eligible asset costing more than $20,000.

    Further information on eligible assets would be made available later, but are intended to include machinery, plant and equipment, including upgrades. It is announced that investments in buildings (capital works) would be excluded, as well as motor vehicles.

    Superannuation contributions

    The federal opposition has committed to changing certain rules relating to superannuation contributions (ALP website). These include:

    • providing superannuation guarantee payments of 9.5% for paid parental leave, and
    • phasing out the $450 per month minimum income threshold for superannuation guarantee.

    Catch-up concessional contributions

    Labor has announced their intention to repeal the catch-up concessional contributions, introduced in the 2016/17 income year (2018 ALP National Platform, p 15).

    Under the enacted legislation, individuals with a total superannuation balance of less than $500,000 are able to make additional concessional contributions. Eligibility to make additional contributions apply where an individual has not reached their concessional contributions cap in previous years, with effect from 1 July 2018. Unused amounts will be carried forward on a rolling basis for a period of five consecutive years from 1 July 2018.

    Other announcements

    • Maintaining the company tax rate of 25% for businesses with aggregated turnover under $50m, scheduled to commence in the 2021/22 income year.
    • Managed investment trust tax rate to be reduced from 30% to 15% in a “Build to rent” scheme, commencing 1 January 2020.
    • Removal of thin capitalisation calculations for debt deductions, leaving international entities with only the worldwide gearing ratio test to apply.
    • Reducing non-concessional contributions cap from $100,000 to $75,000.
    • Reducing threshold for Div 293 tax from $250,000 to $200,000.
    • Banning new limited recourse borrowing arrangements in self-managed superannuation funds.
    • Reintroducing recently repealed legislation surrounding deductibility for salary and wage earners to make additional deductible superannuation contributions. In the past, only self-employed individuals could make personal deductible superannuation contributions.

    If you have any questions or concerns about how the Australian Labor Party tax policies may impact on you, please do not hesitate to contact us. Read more Financial Industry articles.

    Norman Ruan
    Accountant
    T: 02 9984 7774
    E: normanr@northadvisory.com.au

    If you are a NSW business owner, you may be eligible for a payroll tax rebate.

    Businesses that create and fill new jobs on or after 31 July 2016 will receive payroll rebates worth A$6,000. New jobs commencing on or after 31 July 2016 will receive a rebate of up to $2,000 payable on the first anniversary and up to $4,000 on the second anniversary.

    To be eligible, your business must be registered as an employer and paying payroll tax.

    Eligible businesses that increase the number of NSW FTE employees, will receive a payroll tax rebate following the employment of each additional NSW employee in a position that is a new job. A position is a new job if the employment of a person in that position results in a sustained increase in the employer’s NSW FTE employees. New jobs commencing on or after 31 July 2016, will only be eligible for the rebate if the employers full-time equivalent (FTE) employee number, prior to the new job, is at or below 50. This increase must be sustained on both the first and second anniversaries of the date the employment commenced. However, if employment is only maintained for the first year then the rebate will only be paid for that year.

    Please note: a registration for a new job must be made within 90 days of the job commencement date or it will not be eligible for the rebate.

    If you have questions on any of the above issues raised, please do not hesitate to contact us.

    Kim Edwards
    Chartered Tax Adviser
    Chartered Accountant
    T: 02 9984 7774
    E: kime@northadvisory.com.au

    Read more about business tax.

    The ATO has released a draft practical compliance guideline providing a safe harbour approach for beneficiaries or trustees of deceased estates seeking to claim the CGT exemption for disposal of a deceased persons’s main residence within two years of their death.

     

    This exemption in s 118-195 of ITAA 1997 also permits the Commissioner a discretion to allow a period longer than two years to obtain the exemption. The draft guideline also outlines the factors the Commissioner will consider when deciding if this discretion should be exercised. The safe harbour compliance approach is intended to allow taxpayers to manage their tax affairs as if the discretion has been exercised.

    Factors relevant to exercise discretion
    The Commissioner will generally allow a period longer than two years if the reasons for not disposing the dwelling were beyond the control of the beneficiary or trustee and such reasons existed for a significant portion of the first two years. All factors are weighed up in the context of the circumstances of the case and while the circumstances are more important than the length of delay, the amount of any potential capital gain or loss is not a relevant factor.

    Safe harbour compliance approach
    The draft guideline outlines the following five conditions that must be satisfied before a taxpayer can treat the discretion as being exercised:

    • in the first two years, more than 12 months was spent addressing a challenge to a will or ownership of the dwelling, a life or other equitable interest delayed the disposal, complexity of the estate delayed administration or settlement of a sale contract was delayed due to circumstances outside the taxpayer’s control
    • the dwelling is listed for sale as soon as practically possible after the above circumstances are resolved
    • the sale is completed within six months of the dwelling being listed for sale
    • no adverse factors exist eg activities undertaken to improve the sale price of the dwelling, and
    • the longer period for the discretion to be exercised is not more than 12 months.

    The guideline also illustrates the ATO’s preliminary approach to the safe harbour in a number of examples.

    If you have questions on any of the above issues raised, please do not hesitate to contact us. Read more Personal Tax articles.

    Kim Edwards
    Chartered Tax Adviser
    Chartered Accountant
    T: 02 9984 7774
    E: kime@northadvisory.com.au

    Following new GST obligations on certain property purchases which took effect from 1 July 2018, Revenue NSW has clarified that duty continues to be payable on the GST component of such a sale.

    From 1 July 2018, purchasers of new residential property and subdivisions of potential residential land are obliged to withhold GST from the contract price and pay this to the ATO on behalf of the vendor. This change was enacted by Sch 5 to Treasury Laws Amendment (2018 Measures No 1) Act 2018. The GST component is to be remitted to the ATO, or the withheld amount paid to the vendor via a bank cheque made out to the Commissioner of Taxation, on or before settlement.

    Under the Duties Act 1997 (NSW), if the consideration relates to a taxable supply that is subject to GST, duty will be payable on the total consideration, including any amount paid on account of GST, regardless of how the consideration is expressed for GST purposes.

     

    Revenue Ruling No DUT 047 states that previously when the consideration related to a sale of land that was a taxable supply, the purchaser paid duty on the GST inclusive purchase price to the vendor (including any amounts paid on account of GST). The vendor then remitted the GST to the ATO.

     

    Regardless of the new obligations on the part of the purchaser to withhold GST on behalf of the vendor, the rulings clarifies that duty is still payable on the GST component of the purchase price. This applies whether the purchaser pays the withheld GST amount directly to the ATO or to the vendor via bank cheque made out to the ATO.

     

    If you have questions on any of the above issues raised, please do not hesitate to contact us. Read more Financial Industry articles.

    Kim Edwards
    Chartered Tax Adviser
    Chartered Accountant
    T: 02 9984 7774
    E: kime@northadvisory.com.au

    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.

    The draft ruling LCR 2018/D6 outlines how to work out if an entity comes within the reporting requirements and whether the exemption is available (where total amount of payments an entity receives for courier or cleaning services is less than 10% of the entity’s GST turnover). The ATO also states its views on what is or is not regarded as a courier service or cleaning service, and illustrates its views in many examples.

    Specific payments that do not need to be reported are payments for materials, unpaid invoices as at 30 June each year, PAYG withholding payments, payments within a consolidated group and payments made by individuals for private or domestic reasons.

     

    If you have questions on any of the above issues raised, please do not hesitate to contact us.

    Kim Edwards
    Chartered Tax Adviser
    Chartered Accountant
    T: 02 9984 7774
    E: kime@northadvisory.com.au

    Read more about business tax.

    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.

    New South Wales

    Stamp duty surcharge

    8%

    Affected persons

    Individual must be in Australia for 200 days or more within
    the 12 months immediately prior to contract date to be ordinarily
    resident.
    Persons who do not meet the 200 days rule and are either a
    – permanent visa holder
    – NZ citizen with 444 visa, or
    – partner visa holder (subclass 309 or 820)
    are considered foreign persons. Also, a temporary visa holder is considered a
    foreign person.

    Other provisions affected

    No longer entitled to the 12 month deferral for the payment of
    stamp duty for off-the-plan purchases of residential property.

     

    Other notes for NSW:

    A corporation and a trustee of a trust can be a foreign person. This will occur where the corporation or trust itself is not resident in Australia, or an Australian company which has a substantial foreign company or individual ownership.

    A substantial interest of a corporation means an ownership or control of at least 20 percent. For trusts, if the minimum possible distribution is over 20 percent the trust is deemed a foreign person also.

    If a trustee has a discretionary power to make a distribution for a foreign person, then they are deemed to have a 100% beneficial ownership.

    A trust deed under this scenario must be amended with 6 months of the exemption being granted (ie. contract date) in order for the surcharge to be avoided.

    Victoria

    Stamp duty surcharge

    7%

    Affected persons

    Persons who are not a:
    – citizen or permanent resident of Australia, or
    – NZ citizen with 444 visa.
    A foreign corporation includes:
    – corporations incorporated outside Australia, or
    – corporations incorporated in Australia if a foreign person or corporation
    has a controlling interest in the corporation.
    A foreign trust is a trust where a foreign natural person or corporation has
    a substantial interest in the trust estate of that trust.

    Other provisions affected

    First home buyer concession of duty not available for foreign
    persons unless purchased with Australian spouse.

     

    Other notes for Victoria:

    A foreign purchaser may be entitled to an exemption from additional duty if they purchase a principal place of residence jointly with a spouse who is an Australian citizen, permanent resident or NZ citizen with a special category visa.

    Controlling interest in corporations refers to a 50 percent control in the company by way of shares or voting rights.

    Beneficial interest in trusts refers to a 50 percent beneficial interest in the capital of the trust, or if the maximum percentage of discretionary beneficial entitlement is greater than 50 percent.

    A foreign purchaser may still be entitled to a concession of general stamp duty where they are purchasing their principal place of residence. However, the foreign purchaser duty may apply.

    Queensland

    Stamp duty surcharge

    7%

    Affected persons

    Persons who are not a:
    – citizen or permanent resident of Australia, or
    – NZ citizen with special category visa.
    A foreign corporation includes:
    – corporations incorporated outside Australia, or
    – a corporation incorporated in Australia if a foreign person or corporation
    has a 50% interest in the corporation.
    A foreign trust is a trust where a foreign natural person or corporation has
    a 50% interest in the trust estate of that trust.

    Other provisions affected

    Additional stamp duty applies to:
    – Landholder duty, and
    – Corporate trustee duty

     

    Other notes for Queensland:

    Purchases of other types of residential property such as retirement villages and student accommodation are considered on a case-by-case basis.

    A foreign purchaser can still claim the first home concession, first home vacant land concession and home concession.

    South Australia

    Stamp duty surcharge

    7%

    Affected persons

    Persons who are not a:
    – citizen or permanent resident of Australia, or
    – NZ citizen with special category visa.
    A foreign corporation includes:
    – corporations incorporated outside Australia, or
    – a corporation incorporated in Australia if a foreign person or corporation
    has a 50% ownership or voting interest in the corporation.
    A fixed trust is a foreign trust where a foreign natural person or corporation
    has a 50% capital beneficial interest in the trust estate of that
    trust.
    A discretionary trust is a foreign trust where a foreign natural person or
    corporation would be beneficially entitled to receive any distribution,
    whether or not is it exercised.

     

    Other notes for South Australia:

    A foreign person is entitled to a refund of the surcharge duty where they cease to be a foreign person as defined above within 12 months of acquisition.

    The surcharge will be retrospectively imposed where a person, corporation or trust becomes a foreign person, corporation or trust within three years of the acquisition.

    Western Australia

    Stamp duty surcharge

    4%

    Affected persons

    Foreigners, including individuals, corporations and trusts.

     

    Other notes for Western Australia:

    The foreign purchaser surcharge will not apply to residential developments of 10 or more properties.

    Tasmania

    Stamp duty surcharge

    3%

    Affected persons

    Foreign natural person
    Foreign corporation
    Foreign trustee (including a nominee)

    Other provisions affected

    Additional 0.5% on the proportion of dutiable value of primary
    production directly or indirectly acquired by a foreign person.

     

    Other notes for Tasmania:

    A corporation or trust acquiring residential or primary production property will be required to satisfy its TRO agent that it is not a foreigner in order to avoid imposition of the additional duty.

    The additional duty is not payable if the underlying transaction is exempt or is eligible for a concession. The main general concession is for companies undergoing a statutory wind-up.

    If you have questions on any of the above issues raised, please do not hesitate to contact us. Read more Financial Industry articles.

    Kim Edwards
    Chartered Tax Adviser
    Chartered Accountant
    T: 02 9984 7774
    E: kime@northadvisory.com.au

    The foreign resident vendor must lodge a tax return at the end of the financial year declaring:

    • their Australian assessable income, including any capital gain from the disposal of the asset
    • whether the vendor will claim a credit for any withholding amount taken from their sale proceeds (for example, because they didn’t provide the purchaser with a clearance certificate).

    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).

    A foreign resident will need to apply for a TFN before they lodge an Australian tax return to ensure they can claim a credit for the amount withheld and paid to the ATO by the purchaser.
    In certain circumstances, an early tax return may be submitted. If a foreign resident vendor is not eligible to submit an early tax return, they must wait until the end of the financial year to submit it and receive a tax credit for the withholding paid by the purchaser.

    Applying the credit
    We will only apply the credit to the vendor when the:

    • purchaser has paid the withholding to us
    • vendor has lodged an Australian income tax return claiming the credit.

    Before the tax refund or payable is finalised on the tax return the credit is evaluated by the Foreign investment Review Board (FIRB) as well as the ATO once the return has been lodged.

    We’ll give vendors confirmation that a withholding payment has been paid on their behalf.

    In situations where the contract is signed in one financial year but the purchaser pays the withholding in the next financial year, we will apply the Commissioner’s Remedial Power to allow the vendor to claim the credit in the same tax return in which they need to declare the capital gain.

    When the purchaser withholds but doesn’t pay it to us
    The vendor cannot claim a credit for the withholding until the purchaser pays the withholding to us.

    We will promptly take action to collect from the purchaser any withholding amount not paid by the due date.

    If the vendor is concerned the purchaser may not pay the withholding, the vendor should seek legal advice.

    If you have questions on any of the above issues raised, please do not hesitate to contact us. Read more Personal Tax articles.

    Kim Edwards
    Chartered Tax Adviser
    Chartered Accountant
    T: 02 9984 7774
    E: kime@northadvisory.com.au

    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?

    Does the pre-CGT property have to have been the main residence at any time?

    No it is not necessary for the pre-CGT property to have been the main residence of the deceased just before they died.

    The deceased could have used the pre-CGT property to earn income so this capital gains tax exemption can also apply to investment properties.

    What do you mean by dispose of?

    The Estate will need to have transferred out the property, either by selling to a 3rd party or transfers to the beneficiary (so they inherit as according to the will).

    Further to this, if the beneficiary who inherits the property decides to sell the inherited pre-CGT property within 2 years, the capital gains tax on the disposal is also still fully exempt.

    What do you mean by “settled”?

    For this particular legislation for the capital gains exemption, the relevant date is the date the contract is fully settled and completed, which is the date the property transfer has been finalised and performed.

    This is in contrast to the date of exchange of contracts which is normally relevant for the capital gains on the disposal of Real Estate assets, which is the date the contract is signed by the relevant parties.

    If you have questions on any of the above issues raised, please do not hesitate to contact us. Read more Personal Tax articles.

    Judy She
    Senior Accountant
    T: 02 9984 7774
    E: judys@northadvisory.com.au

     

    Martin van der Saag
    Partner
    T: 02 9984 7774
    E: martinv@northadvisory.com.au

    Mr Scott Morrison, the Federal Treasurer, handed down his third Budget at 7.30 pm (AEST) on 8 May 2018. Mr Morrison said the Budget is focused on further strengthening the economy to “guarantee the essentials Australians rely on” and “responsibly repair the budget”. With a deficit of $18.2b in 2017/18 and $14.5b in 2018/19, the Budget is forecast to return to a balance of $2.2b in 2019/20 and a projected surplus of $11b in 2020/21.

    The government is proposing a three-step, seven-year plan to make personal income tax “lower, fairer and simpler”. The Budget also contains additional measures to counter the black economy, particularly in response to the final report from the Black Economy Taskforce, including expanding the taxable payments reporting system. Additionally, the Budget contains a range of measures intended to ensure the integrity of the tax and superannuation system.

    The tax and superannuation highlights are set out below.

    Individuals

    • A seven-year Personal Income Tax Plan will be implemented in three steps, to introduce a low and middle income tax offset, to provide relief from bracket creep and to remove the 37% personal income tax bracket.
    • The Medicare levy low-income thresholds for singles, families, seniors and pensioners will be increased from the 2017/18 income year.
    • The 2017/18 Federal Budget measure to increase the Medicare levy from 2% to 2.5% of taxable income from 1 July 2019 will not proceed.
    • Supplementary amounts (such as pension supplement, rent assistance and remote area allowance) paid to a veteran, and full payments (including the supplementary component) made to the spouse or partner of a veteran who dies, are exempt from income tax from 1 May 2018.
    • Schemes to license a person’s fame or image to another entity such as a related company or trust to avoid income tax will be curtailed.
    • The ATO will be provided with $130.8m from 1 July 2018 to increase compliance activities targeting individual taxpayers and their tax agents.

     

    Income tax

    • Significant changes to the calculation of the R&D tax incentive will commence for income years beginning on or after 1 July 2018. Additionally, a maximum cash refund will also apply for some entities.
    • The $20,000 instant asset write-off will be extended for small businesses by another year to 30 June 2019.
    • Amendments to Div 7A will strengthen the unpaid present entitlements (UPE) rules from 1 July 2019.
    • The start date of targeted amendments to Div 7A will be deferred from 1 July 2018 to 1 July 2019.
    • Deductions for expenses associated with holding vacant land not genuinely used to earn assessable income will be denied.
    • The small business capital gains tax (CGT) concessions will not apply to partners alienating rights to future partnership income.
    • Payments to employees and contractors are no longer deductible where any amounts that are required to be withheld are not paid, from 1 July 2019.
    • The definition of a “significant global entity” (SGE) will be broadened to include more large multinational groups, from 1 July 2018.
    • The thin capitalisation rules will be amended, effective 1 July 2019, to require entities to align the value of their assets for thin capitalisation purposes with the value included in their financial statements.
    • The thin capitalisation rules will be amended, effective 1 July 2019, to treat certain consolidated groups and multiple entry consolidated groups as both outward and inward investment vehicles for thin capitalisation purposes.
    • Tax exempt entities that become taxable after 8 May 2018 will not be able to claim tax deductions that arise on the repayment of the principal of a concessional loan.
    • The 50% capital gains discount for managed investment trusts (MITs) and attribution MITs (AMITs) will be removed at the trust level.
    • A specific anti-avoidance rule that applies to closely held trusts engaging in circular trust distributions will be extended to family trusts.
    • The concessional tax rates for the income of minors from testamentary trusts will not be available for trust assets unrelated to the deceased estate.
    • A five year income tax exemption will be provided to a subsidiary of the International Cricket Council (ICC) for the ICC World Twenty20 to be held in Australia in 2020.
    • The list of countries whose residents are eligible to access a reduced withholding tax rate of 15% on certain distributions from Australian managed investment trusts (MITs) will be updated.
    • Six more organisations have been approved as specifically-listed deductible gift recipients.

     

    Superannuation

    • The maximum number of allowable members in SMSFs and small APRA funds will be increased to six from 1 July 2019.
    • The annual audit requirement for self managed superannuation funds will be changed to a three-yearly requirement for funds with a history of good record keeping and compliance.
    • Individuals whose income exceeds $263,157, and have multiple employers, will be able to nominate that their wages from certain employers are not subject to the superannuation guarantee (SG) from 1 July 2018.
    • Individuals will be required to confirm in their income tax returns that they have complied with “notice of intent” requirements in relation to their personal superannuation contributions, effective from 1 July 2018.
    • An exemption from the work test for voluntary contributions to superannuation will be introduced from 1 July 2019 for people aged 65–74 with superannuation balances below $300,000, in the first year that they do not meet the work test requirements.
    • Insurance arrangements for certain superannuation members will be changed from being a default framework to being offered on an opt-in basis.
    • A 3% annual cap will be introduced on passive fees charged by superannuation funds on accounts with balances below $6,000, and exit fees on all superannuation accounts will be banned.
    • The financial institutions supervisory levies will be increased to raise additional revenue of $31.9m over four years, from 2018/19.

     

    Black economy measures

    • A package to reform the corporations and tax laws to deter and disrupt illegal phoenix activity and the black economy will be introduced.
    • The taxable payments reporting system for payments to contractors will be expanded to include security services, road freight transport and computer system design industries, effective from 1 July 2019.
    • Business seeking to tender for Australian government contracts above $4m (including GST) will need to provide a statement of compliance with their tax obligations, from 1 July 2019.
    • Businesses can no longer receive cash payments above $10,000 for goods and services, from 1 July 2019.

     

    Indirect taxes

    • Offshore sellers of hotel accommodation in Australia will be required to calculate their GST turnover in the same way as local sellers from 1 July 2019.
    • The luxury car tax on cars re-imported into Australia, following a refurbishment overseas, will be removed from 1 January 2019.
    • Alcohol excise refund scheme cap increased from $30,000 to $100,000 per financial year from 1 July 2019, and lower excise rates will apply for smaller beer kegs.
    • Measures to combat illicit tobacco in Australia, including collecting tobacco duties and taxes upon importation and creating a multi-agency task force, will be introduced.
    • Customs tariffs from placebos and clinical trial kits that are imported into Australia will be removed from 1 July 2018.
    • Access to refunds of indirect tax, including GST, fuel and alcohol taxes under the Indirect Tax Concession Scheme has been extended.

     

    How can we help?

    If you have any questions or would like further clarification in regards to any of the above measures outlined in the 2018-19 Federal Budget, please feel free to contact Martin van der Saag or Norman Ruan on (02) 9984 7774. Read more Financial Industry articles.