gst

An ATO “living expenses” tool to tackle the black economy

  It’s known by a variety of names, such as the black economy, or even the cash or hidden economy. But whatever the label, its existence is a pebble in the ATO’s shoe that it is forever looking to prise out. As part of that ongoing effort, the revenue agency has settled upon different sets

[ Read More ]

The same business test replaced by the “similar business” test

  Among the first batch of tax legislation the government dealt with in the new year was Treasury Laws Amendment (2017 Enterprises Incentives No.1) Bill, legislation that contained changes to the “same business” test. It sees the “same business test” supplemented with a more flexible “similar business test” to work out whether a company’s income

[ Read More ]

When are digital products ‘connected with Australia’ for GST purposes?

  With the purchase of digital products such as the streaming or downloading of movies, apps, and e-books and so on becoming exponentially more popular, it is timely to examine the recently-introduced law that applies GST to digital products and services imported by Australian consumers. Effective 1 July 2017, GST now applies to digital products

[ Read More ]

What clients need to know with regard to “luxury” sets of wheels

  According to the government, a vehicle is a “luxury” if it costs more than $66,331 (for 2018-19) or $75.526 (for “fuel-efficient” cars). It was $65,094 for 2017-18, with the same fuel-efficient price level. The target to be rated fuel-efficient by the way is for the vehicle to use less than seven litres of fuel

[ Read More ]

Is that GST for business or private use? Making BAS preparation easier

  Be it vehicles, electronic devices or the home office — many business expenses are also used for private purposes. This means a business must apportion the GST on these costs between private and business use. But how can a business determine exactly how much something is used for work or play? Fortunately, the ATO

[ Read More ]

Top 10 Tax & Super newsroom posts for calendar 2018

  Over the calendar year 2018 there have been many notable tax and self-managed super developments. Apart from bringing news and updates to Tax & Super Australia members and many others, the newsroom page of our website can also serve as a litmus test for what matters most to the tax practitioner community (driven by

[ Read More ]

Proposed time limits to be set for input tax or fuel credit claims

  The ATO recently released a draft ruling (MT 2018/D1) that would mean claims for input tax or fuel tax credits would have a time limit imposed on them. The draft ruling sets out the Commissioner’s view on time limits applying to the entitlement to claim an input tax or fuel tax credit set out

[ Read More ]

Inbound tour operators and collecting, and remitting, GST

  A draft practical compliance guideline (PCG 2018/D7) deals with the requirement for “inbound tour operators” to collect and remit GST. An inbound tour operator is an Australian entity that enters into agreements with non-residents to arrange the supply of Australian tour packages (that can include accommodation and non- accommodation components). Whether GST is required

[ Read More ]

Apportioning GST annually for business and private purchases

  The general case regarding GST credits is that business owners can claim input tax credits relating to eligible business expenses when you lodge your business activity statement (BAS), which may be monthly or quarterly. However it is not unusual for business owners to occasionally make purchases that contain a private use component. Where expenses

[ Read More ]

New GST withholding regime for property buyers

  The payment of goods and services tax (GST) in respect of certain new residential property sales has recently been turned on its head! Commencing 1 July 2018, buyers of new residential premises (other than commercial residential premises or new residential premises created through substantial renovation) or subdivisions of potential residential land (by way of

[ Read More ]