In the 2018 Federal Budget, the Government announced it will introduce a limit of $10,000 for cash payments made to businesses for goods and services from 1 July 2019. As part of implementation the Government will consult on the detail of this measure. Currently, large undocumented cash payments can be used to avoid tax or…
In the 2018/19 Federal Budget the Government announced it will extend the $100% write-off depreciation write-off, by a further 12 months, to 30 June 2019. This is for ‘small business entities’ with aggregated annual turnover less than $10 million (s328-110 of the ITAA97). The $20k instant asset write-off, was first announced in the 2015-16 Federal Budget.…
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…
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…
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…
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…
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…
On 26.4.18, the Australian Bureau of Statistics (ABS) released its report on Taxation Revenue in Australia, as up to the 2016/17 financial year. TOTAL taxation revenue collected in Australia: increased $23,283m (5.0%) from $465,216m in 2015-16 to $488,499m in 2016-17. This was driven by a $16,030m (6.0%) increase in taxes on income and a $2,971m…
On 26.4.2018, the Federal Treasurer told the Australian Business Economists, in Sydney, the following. The Government would not be proceeding with its planned increase in the Medicare levy to 2.5% from 1 July 2019. This was to fund the NDIS (National Disability Insurance Scheme) as the Government considers the budget has improved enough to guarantee funding for the…
The ATO identified some issues with its Superannuation Clearing House, which impacted the processing and crediting of payments to some employee’s super fund accounts, which was rectified by 2 May 2018. Reassurance in relation to super guarantee obligations The ATO has confirmed that employers will be treated as meeting their SGC contribution deadlines, for employee…