News

The Treasury Laws Amendment (Accelerated Depreciation For Small Business Entities) Act 2017 extends the period during which small business entities (SBEs) can access accelerated depreciation. The extension is for 12 months, ending on 30 June 2018. SBEs will be able to can claim an immediate deduction for depreciating...

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. This is referred to as the digital import or “Netflix tax” rules. GST Ruling GSTR 2017/1...

For the 2016–2017 income year, the company tax rate for small businesses decreases to 27.5%. Companies with turnover of less than $10 million are eligible for this rate. The maximum franking credit that can be allocated to a frankable distribution has also been reduced to...

A pipe fitter has been denied deductions, due to lack of evidence, by the Administrative Appeals Tribunal (AAT) for work-related expenses: Re Hamilton and FCT [2017] AATA 734. The expenses fell into three categories: tool expenses ($945) – although his employer provided tools, the taxpayer said...

Super reforms: SMSF commutation requests to stay within $1.6 million pension cap The ATO has released Practical Compliance Guideline PCG 2017/5, which outlines the circumstances where the ATO will not conduct compliance reviews for pension commutation requests made before 1 July 2017 by a member of a self managed...

A taxpayer has been denied a deduction for car expenses incurred in transporting equipment to and from work, partly because the storage facilities at her workplace were adequate: Re Rafferty and FCT [2017] AATA 636, AAT No 2015/3723. The taxpayer was employed as a stevedore. In...

The Government has announced a package of reforms to higher education – the Higher Education Reform Package – to take effect generally from 1 January 2018. Under the package the maximum student contribution will increase from 1 January 2018, but there will be no up-front fees and no deregulation...

The ATO is helping teachers add tax and super to their classes this year with dedicated educational resources. In partnership with the Australian Curriculum, Assessment and Reporting Authority (ACARA) and the Australian Securities and Investment Commission (ASIC), the ATO has developed resources that align to the...

The Minister for Education and Training, Simon Birmingham, has announced a package of reforms to higher education – the Higher Education Reform Package – to take effect generally from 1 January 2018. The details announced will be confirmed in the 2017–2018 Federal Budget. They include: ...

PERSONAL TAXATION No change to personal tax rates; Budget deficit levy to end The 2017–2018 Federal Budget contained no changes to the personal income tax rates and thresholds. This means that the 2% budget deficit levy on incomes over $180,000 will not be extended beyond its initial...