In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
ATO in the media
An episode of the ABC’s Four Corners has recently aired drawing much attention and comment in the media. The episode focused on alleged questionable practices of the ATO and calls for greater independent oversight.
For those following the story, the ATO have issued an Executive Statement on the ABC/Fairfax coverage.
If you have experienced unfair treatment or maladministration by the ATO, contact our office to discuss your rights and the options you have available to you.
Federal Budget 2019
The Federal Budget will be released at 7.30pm AEST on Tuesday 8 May 2018.
We will issue a wrap-up of the budget highlighting the key announcements affecting business, taxation and super.
Holiday home rentals in the ATO’s sights
The ATO is increasingly concerned about the number of incorrect claims for holiday home rental deductions.
They are reporting seeing very aggressive claims that inappropriately minimize tax. As a result, they are ramping up their audit focus in this area.
If you rent out a property for short-term holiday accommodation, and also use that property privately, you need to ensure that expenses are correctly apportioned when submitting your tax return.
If you need help to understand what, and how much can be claimed, please contact us.
Fair Work Ombudsman auditing 1000 business in “hot-spots”
The FWO has begun auditing 1000 business across Australia as part of a campaign to ensure that employers are getting the basics right.
The industries and area’s of focus selected for the campaign have been determined based on data and analysis which have identified “hot-spots” of concern.
A key area of focus flagged by the FWO will be the fast food, restaurant and cafe industries.
Hospitality and tourism businesses are frequently found to have failed to meet their obligations by the FWO and this can be very costly for them. This should serve as a warning to operators to ensure that they know and meet their obligations.
A good spot to start is the pay and conditions tool (P.A.C.T.) on the FWO website.
If you need help to understand your employer obligations, please get in contact.
Research & Development Tax Incentive
The R&D Tax Incentive provides valuable financial assistance to companies undertaking eligible R&D activities.
The 30 April due date for registering eligible R&D activities in respect to the 2017 financial year is now upon us.
Registration applications need to be completed and submitted as matter of priority. Get in touch if you need our help.
GST withholding on property transactions
Last month we wrote about last years Government announcement that it will require purchasers of newly constructed residential properties and/or new subdivisions to pay the GST direct to the ATO at settlement.
The measure is aimed to combat non-payment of GST by property developers.
The legislation to introduce this change has now received Royal Assent and will start from 1 July 2018.
Contracts signed pre 1 July 2018 that settle by no later than 1 July 2020 will not be subject to the new rules.
These changes will have significant implications for the cashflow of honest property developers.
Affected developers are urged to revisit their planning and forecasts to ensure that the cashflow implications of these changes are properly managed.
Purchasers, real estate agents and conveyancers are also urged to take steps to understand their obligations.
Accountants Ballarat Office
Phone: 1300 328 855
Fax: 03 53334430
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Accountants Sunbury Office
Phone: 03 97444522
Fax: 03 97447004
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437