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Business

New residential premises – purchasers to pay GST

The Government has announced that from 1 July 2018, purchasers of newly constructed residential properties or new subdivisions are required to remit the GST payable directly to the ATO at settlement.

Bitcoin and other digital currencies will officially be money

The Government proposes to fundamentally change the characterisation of digital currencies for GST purposes. Historically, the ATO has treated the supply of bitcoin and other digital currencies as a taxable supply of intangibles rather than equalising digital currencies to money or cash.

GST – Changes to treatment of precious metals

Acting on historical and ongoing concerns, the ATO has sought to improve the integrity of the GST system through technical changes to the GST Act to crack down on GST fraud in the precious metals industry.

Higher instant asset write-off for small businesses extended for 12 months

Last year’s Budget introduced a number of welcome Small Business Entities (SBEs) concessions including a more generous instant asset write-off for SBEs, and changes to the simplified depreciation regime with a view to improving cash flow for the small end of town.

National Innovation and Science Agenda

More than 16 months after the Government announced its revised scope for the review of the R&D Tax Incentive (3F report), as part of its National Innovation and Science Agenda, no changes to the R&D Tax Incentive were announced in the Budget. 

New levy on employers of foreign workers

On the back of the announcement of the replacement of 457 visas, the Government has announced the introduction of a new levy on businesses with foreign workers on certain skilled visas, with a slightly lower levy applying to small business entities.   

Extending tax relief for merging superannuation funds

The Government will extend the current tax relief for merging superannuation funds, which was due to lapse on 30 June 2017, until 1 July 2020. The Government first introduced tax relief for merging superannuation funds in December 2008.