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Here's the ATO 2018 'hit list' for FBT Apr 20, 2018

With the end of the financial year approaching the ATO has released it’s hit list of what will be attracting their attention in the 2018 year. On this list is, Fringe Benefits Tax so we thought it would be a good time to reach out to you and discuss this topic as the FBT year has just ended. If your business has provided yourself, your family members or employees with any of the items or services, it is possible that you may have a fringe benefit issue.


Time to review your superannuation. Here's some things to consider. Apr 12, 2018

Under the new Government changes to super, effective 1 July 2017, the 10% maximum earnings condition for personal superannuation contributions was removed for the 2017-18 and future financial years.

This rule provided that an individual must have earned less than 10% of their income from their employment related activities to be able to deduct a personal contribution.

This change ensures that individuals receiving employment income are not dependant on whether their employers offer salary sacrifice arrangements. Self-employed individuals and individuals in receipt of passive income can make deductible personal contributions regardless of the amount of salary or wages they earn.


Proposed policy to stop SMSF's from receiving tax refunds for franking credits Apr 4, 2018

Labor, if elected, will change the law so that SMSFs and other low tax paying entities will no longer be able receive a tax refund for the franking credits they receive. This will affect all SMSFs that own Australian shares, especially funds that have received tax refunds in recent years. This could have a significant impact on the retirement income of many SMSF members in retirement. 


Foreign residents and the main residence capital gains tax exemption Mar 8, 2018

Currently as the law stands, the Main Residence exemption from tax on any capital gain is available for all taxpayers who dispose of a qualifying 'main residence', irrespective of which country they reside in for tax purposes at the time of the disposal. This Bill is attempting to remove this exemption for those who are foreign residents for tax purposes at the time of the sale of their property.


Property development and the new GST withholding regime from 1 July 2018 Mar 2, 2018

 

On 7th February 2018 the government introduced Treasury Laws Amendment (2018  Measures No. 1) Bill 2018 into the House of Representatives. The law imposes new obligations from 1st July 2018 on both the purchaser (required to withhold an amount) and the seller (required to provide documentation) when buying and selling new residential property.


The new law has the express purpose of preventing the loss of the GST revenue due to the ‘phoenix1’ activities of some property developers. Phoenix in the GST sense involves making a taxable supply (selling property), collecting a GST component and then liquidating the company prior to payment of the GST liability only to continue business via another corporate vehicle or some other structure.

Daryl Corpe
Partner


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