Tax news, views & clues – August 2017

  • Tax cut for small businesses – Legislation has now passed to apply a 27.5% corporate tax rate from 1 July 2016 for small business entities (SBEs) with aggregated turnover of under $10 million.
  • Instant asset write-off extended for small business entities – The Treasury Laws Amendment (Accelerated Depreciation For Small Business Entities) Act 2017 extends the period during which SBEs can access accelerated depreciation. The extension is for 12 months, ending on 30 June 2018.
  • ATO update on Manage ABN Connections – The ATO says feedback from tax professionals identified that further work is required to meet their needs. The ATO advised that the myGov login is therefore not currently available to access the Tax or BAS Agent Portals.
  • Work-related deductions denied – A pipe fitter has been denied deductions by the AAT for work-related expenses because the taxpayer was unable to produce adequate documentary evidence.
  • Super reforms – The Treasury Laws Amendment (2017 Measures No 2) Act 2017 sees changes to TRIS, CGT relief, pension cap and LRBA integrity rules come into effect from 1 July 2017.
  • Self-managed super funds – The 2017 SMSF annual return and instructions have been released. The key changes include the transitional CGT relief for super funds as part of the 1 July 2017 reforms, reporting on limited recourse borrowing arrangements (LRBAs) and early stage investor tax incentives.
  • Single Touch Payroll operative for early adopters – Single Touch Payroll (STP) is here. It had a “soft” or voluntary start on 1 July 2017. From that date, employers may choose to report under STP.
  • “Netflix” tax – From 1 July 2017, the supply of services, digital products or rights are connected with Australia (and so potentially liable to GST) if made to an Australian consumer by an overseas-based supplier. GST Ruling GSTR 2017/1 explains how overseas suppliers can decide whether a recipient of a supply is an Australian consumer.
  • GST draft guidelines – New draft guidelines have been issued explaining the low-value imported goods measures and how they apply to supplies made through electronic distribution platforms (EDPs) and redeliverers of offshore supplies.