IIn the Newsletter for end of 2018 financial year there are some interesting topics. To view entire articles, right click on a heading and
press “open web link in browser”.
NEWS:
IMMEDIATE TAX DEDUCTION - There are simplified depreciation rules to claim an immediate deduction of the business
portion of new or second hand asset costing less than $20,000.
LOWER COMPANY TAX RATES: More companies can now utilise the lower company tax rates introduced in 2016-17.
CERTAIN IMPORTERS TO PAY GST: New GST charge introduced on low value goods imported to Australia.
GST ON SETTLEMENT REGIME: A new regime, “GST on settlement” commences on 1 July 2018, obliging buyers of certain residential land to withhold GST and remit it directly to the ATO.
TIPS AND TRAPS IN TAXATION
SALE OF PROPERTY AS A GOING CONCERN (GST EXTEMPTION): TWO TIPS AND TRAPS
PAYING INCREASING ADJUSTMENT WHEN PURCHASING NEW PROPERTY IN SOME INSTANCES if it is a purchase of new property and a buyer uses the property wholly making supplies that are neither subject to GST nor GST-free.
MARGIN SCHEME AND PROPERTIES OWED SINCE BEFORE 1 JULY 2000: the margin on which GST payable for properties owed since before 1 July 2000, on which GST is payable, is the difference between the value on 1 July 2000 and the sale price.
WILLS AND TAX: TWO TIPS AND TRAPS
NON AUSTRALIAN RESIDENT: If real estate passes to a non-Australian resident, the capital gains tax on the increase in value is payable by the estate
DEATH BENEFIT TO PASSES DIRECTLY TO DEATH BENEFIT DEPENDANTS: When drafting a will, death benefit should not go to creditors as it will be taxable, but directly to a death benefit dependant who can then pay a creditor.
LAND TAX
ANY REFUNDS SHOULD BE ASKED FOR PROMPTLY OR THEY MAYBE LOST: there maybe a preclusion to ask for refunds more than 3 years after the payments.
VARIOUS
SMSF TRUSTEE MAYBE RESPONSIBLE TO PAY GST FOR SALE OF PROPERTY
DEFINITION OF MARKET VALUE IN AGREEMENTS MAY INCLUDE GST: when inserting words “market value” in agreements or other documents, it is likely that ENOS notices which include comparable sales already included GST component in them.
