GST – turnover on selling Australian hotel rooms now counts again for registering for GST – ‘levelling the playing field’ for online bookings

In the 2018 Federal Budget, the Government announced it will extend the GST, by ensuring that offshore sellers of hotel accommodation, in Australia, calculate their GST turnover, in the same way as local sellers. This will be from 1 July 2019. Currently, unlike GST-registered businesses in Australia, offshore sellers, of Australian hotel accommodation, are exempt from…

Managed Investment Trusts (MITs) – 56 countries added to the list entitled to the lower 15% withholding rate (new information sharing countries since 2012)

In the 2018 Federal Budget, the Government announced it will update the list of countries whose residents are eligible to access a reduced withholding tax rate, of 15 per cent, instead of the default rate of 30 per cent, on certain distributions from Australian Managed Investment Trusts (MITs). Listed countries are those which have established…

Significant Global Entity’ – change to definition – same $1b global turnover but wider group of ‘parent entities’ that can establish the ‘global’ group

In the 2018 Federal Budget, the Government announced it will broaden the definition of a large multinational (or significant global entity (SGE)) to ensure that Australia’s multinational tax integrity rules operate as intended. The SGE definition identifies entities which are required to prepare Country-by-Country (CbC) reports and is used to determine entities which may be…

Labor’s Budget Reply – bigger tax cuts than the Government’s but it will only agree to Stage 1 of Government’s 3 stage measure

Opposition Leader Bill Shorten gave Labor’s 2018 Budget Reply in the House of Reps on 10 May 2018. Key revenue-related points from his speech include: Labor will only support the Government’s personal income tax cuts starting 1 July 2018, but not the Government’s further tax cuts measures. Labor’s Tax Refund for Working Australians will increase the tax cuts currently…

LCR 2018/D1 – Purchaser’s obligation to pay a GST ‘withholding’ amount on a taxable supply of newly constructed ‘residential premises’ and certain ‘potential residential land’ – draft Ruling on operation of new law

On 26.4.2018, the ATO issued a Draft Law Companion Ruling, on the operation of the newly passed laws, that implemented the ‘GST withholding’ provisions, for certain purchasers of newly constructed residential premises, or new subdivisions, to remit GST directly to the ATO. Treasury Laws Amendment (2018 Measures No 1) Act 2018 (the Amending Act),which received Royal Assent…

SMSF Association’s Statement regarding disciplinary proceedings against financial planner: Sam Henderson for potential $500k loss from his advice – exposed in Banking Royal Commission

On 26.4.18, the SMSF Association issued a statement that it has initiated disciplinary proceedings against an Associate member in response to conduct revealed at the Financial Services Royal Commission (FSRC). The SMSF Association said it was disappointed by the alleged conduct attributed to the financial planner, Sam Maxwell Henderson, and Henderson Maxwell Proprietary Limited, as…

CPI for March 2018 quarter increased 0.5 over the December 2017 quarter (inflation 1.9% for the full year) – relevant for FBT

The Australian Bureau of Statistics (ABS) has released the CPI indexation factor, for the March quarter 2018, showing a 0.5 increase from the Dec 2017 quarter, to 112.6. The ABS said inflation was running at 1.9% through the year to 31 March 2018 (steady from the December 2017 quarter). The most significant price rises this quarter were secondary education (+3.3%), gas…

ASIC updates guidance on AFS licensing requirements for accountants (Tax & BAS agents) who give advice about SMSFs (Self-Managed Superannuation Funds)

On 26.4.18, Australian Securities and Investments Commission (ASIC) updated its guidance for accountants who provide services on self-managed superannuation funds (SMSFs) to cover the exemption from the Australian Financial Services (AFS) licensing requirements for Tax and BAS agents. The guidance was developed in conjunction with the Tax Practitioners Board and is being released as part…