In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
‘Tis the season
With the holiday season just around the corner, many businesses will be planning a celebration for their staff.
It is important to remember that provision of food, drink, gifts and leisure activities may be considered “entertainment” that can trigger a FBT obligation for the employer.
If you need help to understand the FBT implications of your end-of-year celebration, please get in touch.
SMSF event-based reporting
Do you have a balance of more than $1m in your SMSF? If so, new reporting requirements will apply to your SMSF from 1 July 2018.
Under these new requirements, SMSF will be required to report on events affecting their Transfer Balance Cap. For example, commencement of a new pension.
For more information on the new reporting requirements, please contact us.
Improving the integrity of GST on property transactions
An issue has emerged where dishonest property developers are failing to pay the GST collected on property sales to the ATO.
In response, the Government have released draft legislation to introduce a new mechanism to apply to property sales from 1 July 2018. This new mechanism will require purchasers to pay the GST component of the sale price direct to the ATO as part of settlement.
If this measure becomes law, it may have a significant impact on how honest property developers manage their cash flow.
We will keep you posted.
The team at Sky Accountants are very proud to congratulate our CEO Jamie Johns for being recognised as the Member of the Year by the Institute of Public Accountants.
Well done Jamie!
Fair Work Ombudsman taking action in the hospitality industry
The Fair Work Ombudsman (FWO) has reported taking action against a number of hospitality businesses during November for underpayment of wages and exploitation of young and vulnerable employees.
In one case, the FWO secured almost $400,000 of penalties against the business and its owner.
These cases highlight that the FWO will investigate and take action. All businesses, particularly those in the hospitality and tourism industry, need to take care to ensure that they are meeting their employer obligations.
The Pay And Conditions Tool (PACT) is a great resource for business operators to check that they are getting it right.
Changes affecting investment properties
Under these changes, depreciation claims for properties acquired after 7.30pm on 9 May 2017 will be limited. Investment property owners will also be no longer able to claim travel deductions relating to their properties from 1 July 2017.
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