Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018 – to extend the ‘Small Business Entity’ instant asset write-off, by 12 months, to 30 June 2019 – Senate Committee recommends passing Bill

The Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018 will extend the ‘Small Business Entity’ instant asset write-off by 12 months, from 30 June 2018, to 30 June 2019. The Bill was was introduced in the House of Reps  on 24 May 2018 and on 29 May 2018, the Senate Economics Legislation Committee…

Tax Month - May 2018

Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Bill 2018 passes Lower House – introducing offences and penalties for ‘sales suppression tools’ and adding ‘cleaning’ and ‘courier’ payments as reportable to the ATO

On 30 May 2018, the Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Bill 2018 passed the House of Representatives, with one amendment, and now moves to the Senate for consideration. The Bill was introduced on 7 February 2018. Schedule 1 – sales suppression tools – of the Bill proposes to prohibit the production,…

Tax Month - June 2018

Amazon – ‘geo-blocks’ Australians back to its (thinly stocked and uncompetitive) Australian hub rather than have the US pay Australian GST from 1 July 2018

The start of the new legislation, to force overseas suppliers, to pay Australian GST, on supplies of sub-$1,000 goods, to Australians, seems to have backfired, after Amazon announced (on 31.5.18) that it would subject Australian purchasers to a ‘geo-block’ – namely to redirect Australian purchasers, to its new Australian hub, which would pay the GST.…

Tax Month - June 2018

Corporate tax avoidance – Senate committee releases final report – 13 recommendation after a 3.5 year torrid inquiry – legislation already fixed some problems

On 30 May 2018, the Senate Economics Reference Committee released a final 128 page report of its inquiry into corporate tax avoidance in Australia. The Committee’s hearings caused headlines as senior officers of major companies were grilled as to the tax structures (a bit like the current Banking Royal Commission, but the Australian revenue was…

Tax Month - June 2018

SA: Transfer Duty – no duty on transfers of non-residential and non-primary production land executed on or after 1 July 2018 (replaced by 0.825% ad valorem registration fee)

Revenue SA reminded taxpayers, that transfers of ‘qualifying land‘ (non-residential or non-primary production land), were exempt from transfer duty, if executed on or after 1 July 2018. This is significant duty reform, from South Australia, and is the effect of  s105A(5) of the Stamp Duties Act 1923, which was inserted into this Act, in  2015,…

Tax Month - June 2018

Taxation of Digital (Digitised) Economy – a round up of global developments with a ‘glimpse over the horizon’ at the direction of both direct and indirect taxes

The world is full of ‘Taxation of the Digital Economy’ material, but I saw a 1 hour ‘webcast’ by KPMG, on this subject, which I thought was very useful in that, it covered the fundamentals of the subject well, and gave good insight into the direction of future taxes, both direct and indirect. This is…

Tax Articles

Decleah Investments Pty Ltd v CofT – GST: ‘margin scheme’ applied to taxpayer’s 1 July 2000 value – value based on discounting actual (not predicted) cash flows was ‘not contrary’ to the relevant professional valuation standards

The Federal Court has upheld an appeal against an AAT decision that the taxpayer had not provided an approved valuation when applying the margin scheme on the supply of subdivided lots. The ‘margin scheme’ can be applied to taxable supplies of ‘real property’ by way of sale (or grant of a long term lease) –…

Tax Month - May 2018

Denmark Community Windfarm Ltd v CofT – Grant to establish wind farms triggers an assessable recoupment as ‘indemnity’ and depreciation under the optional method for ‘small business entities’ & now a DIS

The Full Federal Court has dismissed the taxpayer’s appeal and held that a Commonwealth grant of almost $2.5 million, for the establishment of wind farms, was an assessable recoupment of deductible expenses, under s20-20 of the ITAA97 – despite the deductions being amortised rather than an ‘outright deduction’. The case involved the development of a…

Tax Month - February 2018

$10k cash payment limit – Government commences consultation on this Budget ‘black economy’ measure to start on 1 July 2019

On Friday 25 May 2018, Treasury released a consultation paper to implement the 2018 Budget Measure to introduce an economy-wide cash payment limit of $10,000. It invites comments by 24 June 2018. Minister O’Dwyer also released a Press Release. The measure would apply from 1 July 2019. The Government proposes that a cash payment, over…

Tax Month - May 2018