Phone: 02 8883 0133

Site Resources

Latest News

 



The Leader of the Opposition, Bill Shorten, has announced that a Labor Government (should they be elected) will introduce a standard minimum 30% tax rate for discretionary trust distributions to "mature beneficiaries" (i.e., people aged 18 and over).

Although the ALP acknowledges that individuals and businesses use trusts for a range of legitimate reasons, such as asset protection and business succession, "in some cases, trusts are used solely for tax minimisation."

Labor's policy will only apply to discretionary trusts, so other trusts – such as special disability trusts, deceased estates and fixed trusts – will not be affected by this change

Change to travel expenses for truck drivers

Source:  NTAA Practice Update - August 2017

For the 2017/18 income year, the reasonable amount for travel expenses (excluding accommodation expenses, which must be substantiated with written evidence) of employee truck drivers who have received a travel allowance and who are required to sleep away from home is $55.30 per day (formerly a total of $97.40 per day for the 2016/17 year).

If an employee truck driver wants to claim more than the reasonable amount, the whole claim must be substantiated with written evidence, not just the amount in excess of the reasonable amount.

Source:  NTAA Practice Update - August 2017

From 1 July 2017, GST applies to imported services and digital products from overseas, including:

  • digital products such as streaming or downloading of movies, music, apps, games and e-books; and
  • services such as architectural, educational and legal.

Australian GST registered businesses will not be charged GST on their purchases from non-resident supplier if they:

  • provide their ABN to the non-resident supplier; and
  • state they are registered for GST

However, if Australians purchase imported services and digital products only for personal use, they should not provide their ABN.

 

Small Business 2017

Small Business 2017

The small business asset write off up to $20,000 has now been extended to 30 June 2018.  The deduction is used for each asset that costs less than $20,000 whether new or second hand.

From 1 July 2017:

  • The tax rate for small business is reduced to 27.5%
  • For sole traders, partnerships and trusts, there is a 8% small business tax offset (up to $1,000 limit) for those with a turnover of less than $5 million.
  • The small business turnover threshold has now been increased to $10 million (previously $2 million).  This means more businesses can access a range of small business concessions including the $20,000 instant asset write off and reduced company tax rate.

The reduced company tax rate of 27.5% will progressively apply to companies with turnover less than $50 million by the 2018-19 income year. 

 

Source:  NTAA - Practice Update August 2017

From 1 July 2017, GST applies to imported services and digital products from overseas, including:

  • digital products such as streaming or downloading of movies, music, apps, games and e-books; and
  • services such as architectural, educational and legal.

Australian GST registered businesses will not be charged GST on their purchases from a non-resident supplier if they:

  • provide their ABN to the non-resident supplier; and
  • state they are registered for GST.

However, if Australians purchase imported services and digital products only for personal use, they should not provide their ABN.



Copyright Taylor and Co ©      |     Disclaimer     |     Site Map       |     Tax Accountant Baulkham Hills
Taylor and Co Accountants - Phone: 02 8883 0133 Location: Suite 513, 5 Celebration Drive, Baulkham Hills, NSW 2153