Daily Archives: October 3, 2016

Cross-border (B2B) changes started 1 October 2016 and Digital (eg. Netflix) (B2C) changes will commence on 1 July 2017

Cross-border business-to-business (B2B) GST reforms commenced on Saturday, 1 October 2016. They were introduced in the Tax and Superannuation Laws Amendment (2016 Measures No 1) Act 2016, which received Royal Assent on 5 May 2016. Under the changes, the GST Act has been amended to better target the way Australia’s GST rules apply to cross-border supplies that involve non-resident…

Country-by-Country Reporting – ATO guidance on applications for exemption

Introduction CbC reporting is required by Div 815-E of the Income Tax Assessment Act 1997 and the Commissioner can exempt an entity from this reporting or parts thereof under s815-365 of this Act. This guidance outlines the general principles and processes we follow when considering an exemption request from a particular entity with respect to…

‘Backpacker Tax’ – result of the review: tax at 19% up to $37,000 from 1 January 2017 (mid-way between the resident and non-resident rates)

On 27.9.16, the Treasurer announced the following resolutions of Cabinet regarding what has been called the ‘backpacker tax’ review. From 1 January 2017 the tax rate for working holiday makers (entering under the relevant visa categories) will be 19% from the first dollar up to $37,000 (the upper income limit for the current 19% marginal…

Superannuation reform (2nd tranche) – exposure drafts: $1.6m retirement phase cap; $25k contribution caps; 30% contribution tax starts at $250k; 5 year contribution carry forward for sub-$500k balances

On 27.9.16, the Government released 2 Draft Bills and a draft regulation and explanatory material comprising the 2nd tranche of superannuation reforms that were first announced in the 2016-17 Budget: Exposure Draft: Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 Exposure Draft: Superannuation (Excess Transfer Balance Tax) Imposition Bill 2016 Exposure Draft: Treasury Laws…