|
 
| |
Feedback » 
Current Affairs
| 27.8.99 |
RENTAL
PROPERTIES: BE CAREFUL WITH DEDUCTION CLAIMS The ATO’s national project looking at
deductions claimed in respect of rental properties continues. A number of deduction claims
need to be watched carefully:
 | DEPRECIATION: The ATO says estimates of the cost of items that were acquired with the
property where no cost was specified must not be based on the current replacement cost for
each item. Instead, a reasonable attributable value needs to be established for each item.
Depreciation is not allowable for items that form part of the building structure (eg
plumbing and gas fittings) or for items considered to be essential parts of a residential
building (eg kitchen cupboards, electrical wiring, sinks, tubs and skylights). |
| BUILDING WRITE-OFF: Deductions for construction costs or structural improvements can be
based on estimates by a quantity surveyor (where actual costs cannot be determined). The
ATO says the cost to the taxpayer of hiring the surveyor is deductible as a tax related
expense (and not an expense in gaining or producing assessable income). |
| PROPERTY AND MORTGAGE IN DIFFERENT NAMES: Where, for example, a couple buys a property
and that property is held in one name but the mortgage is held in both the couple’s
names, the ATO says the owner of the property would generally be entitled to a full tax
deduction for the interest paid under the mortgage. Where a property is held in joint
names but the mortgage in only one name, the ATO considers the couple owns the property as
joint tenants and should return the income and expenses equally. |
GST RULINGS MUST BE MADE BINDING: TIA
The Taxation Institute of Australia (TIA) has called
on the Government to urgently introduce legislation to make GST rulings binding. TIA
President Gordon Cooper says binding GST rulings cannot currently be issued as the GST
legislation does not allow it. Currently, if a ruling covers both GST and income tax
issues, only the ruling on the income tax matters can be binding. The TIA has called on
the Government to align the GST ruling system with the present system for income tax and
FBT.
Mr Cooper said "until this
unacceptable situation is resolved, business will have the spectre of the
Commissioner’s ever changing interpretative whim hanging over their heads". He
warned that recent income tax cases have shown that the ATO is "quite prepared to
argue a position contrary to that in a ruling. The non-binding nature of GST rulings does
not promote good tax administration". (Source: TIA media release, 25 August 1999.) |
| 25.8.99 |
CGT:
INTERACTION OF DUAL RESIDENCE EXEMPTION WITH OTHER SECTIONS - TAXATION DETERMINATION TD
1999/43 This Determination confirms that the dual main residence exemption of up to 6
months provided by s 118-140 of the ITAA 1997 will continue to be available where a
taxpayer moves to a new principal residence and has chosen to apply either s 118-145
(about absences from a principal residence) or s 118-150 (about building, repairing or
renovating a dwelling). Consequently, if the requirements of s 118-140 are satisfied,
taxpayers can treat the 2 dwellings as their main residence for a period of up to 6 months
in these circumstances. (Previously released as Draft TD 98D/14.) |
| 20.8.99 |
IMMEDIATE
DEDUCTIBILITY FOR GST-RELATED EXPENDITURE: LAW TO BE AMENDED The Treasurer has
announced today [19.8.99] that the Government will legislate to allow IMMEDIATE TAX
DEDUCTIBILITY for small and medium sized businesses (turnover $10m or less) for
expenditure on acquiring new plant or software for the purposes of implementing the GST.
This deduction is in addition to the $500m being provided in 1999-2000 to help small and
medium enterprises, charities and education bodies.
DETAILS: For businesses with a turnover of not more than $10m, the Government will
legislate to extend the class of expenditures immediately deductible to include:
| expenditure incurred on acquiring new plant or new software (including upgrades)
associated with gearing-up for the GST, provided the expenditure is incurred BEFORE 1 JULY
2000. |
ATO RULING: The Treasurer said the ATO will issue a ruling
setting out the tax treatment of expenditures that may be incurred by business taxpayers
in preparing for the GST. This ruling will apply to all businesses for expenditures
different from those covered by the above announcement.
In a separate release, the Commissioner confirmed that the ATO would release a ruling
TOMORROW [20.8.99] on income tax deductions allowable under the existing law for expenses
businesses may incur in gearing up for the GST. Broadly, the ATO said the ruling confirms
that:
| TRAINING/TAX ADVICE: expenditure on staff training, and advice from tax professionals is
fully deductible when incurred; |
| EQUIPMENT: expenditure on new plant and equipment is depreciable over its effective
life; |
| SOFTWARE: expenditure on new computer software and upgrades to existing software can be
written-off over 2.5 years. |
(Source: Treasurer’s press release No 51, 19 August 1999; ATO media release Nat
99/49, 19 August 1999.)
ATO DEBT COLLECTION POLICY
The ATO has placed on its (now revamped) Website its "Policy for The Collection of
Taxation Debts". As would be expected, the policy covers a wide range of issues
including:
| Principles Underlying the Debt Collection Policy of the ATO; |
| Accountability and Review of Decisions; Risk Management; Locating (Tracing) the Debtor;
Taxation Debts and the Due Date for Payment; |
| Estimating a Liability; Methods of Payment and Allocation of Unspecified Payments or
Credit Amounts (separate notes on methods applied by the Commissioner before 1 July 1999
and methods applied from that date); The Collection Process; Extending Due Date for
Payment; Payment by Instalments and/or Deferring Legal Recovery Action; Payment
Agreements; |
| "Garnishee" Notices; Departure Prohibition Orders; Personal Liabilities of
Company Directors; Writs/Warrants of Execution; Bankruptcy Act - Part X Arrangements and
Part IX Debt Agreements; Bankruptcy Action - Conditions and Factors to Consider; Annulment
of Bankruptcy; |
| Corporations Law - Part 5.3a Arrangements (Voluntary Administration); and Liquidation
Action - Conditions and Factors to Consider. |
|
| 18/8/99 |
CONSULTATIVE DOCUMENT ON GST AND FINANCIAL
SERVICES RELEASED The Government has released a consultative document containing
proposals for the application of GST to financial services. The document sets out the
proposed scope of input taxation of financial services and the proposed application of the
reduced input tax credit. The Government intends to introduce regulations in October 1999
specifying the services that will be input taxed and the taxable services that will
attract reduced input tax credit following feedback on the document.
ABN IMPLEMENTATION - FURTHER DETAILS
During a presentation in Sydney this morning [17.8.99] to the Taxation Institute of
Australia, Mr Rick Matthews, Tax Office Deputy Commissioner GST, gave some details of the
Australian Business Number (ABN) initiative:
| Full integration of the ABN as the single business
identifier for all business transactions with Federal Government agencies is intended to
be in place by 1 July 2001. |
| It is not intended to replace Tax File Numbers with the ABN.
This is probably the sole exception. |
| The ABN will be an 11 digit number. |
| The ABN will eventually replace (by July 2001) the existing
Australian Company Number (ACN). Any company with an existing ACN will be allocated an ABN
which has as its last 9 digits the company’s ACN. The first 2 digits will be new
"check digits." |
| Entities applying for an ABN without a current ACN will be
given a totally new 11 digit number as their ABN. |
| As it is intended that the ABN will replace the ACN, changes
will be necessary to incorporate a requirement within company law for the display of ABNs
on company documents, including letterheads. |
| The ATO will release a (non-binding) GST public ruling in
September 1999 on "transitional invoices pre-ABN". |
BUSINESS ACTIVITY STATEMENTS - FORM REVEALED BY ATO
During the same presentation in Sydney this morning to the Taxation Institute of
Australia, Rick Matthews also displayed the proposed Business Activity Statement (BAS) for
use in the tax reformed environment, and made the following observations:
| The BAS will be a double-sided single sheet of A4 paper in
its non-electronic format. |
| It will be used for all payments and refunds of GST, PAYG,
and FBT. In respect of FBT instalments, the amount will be pre-printed on the BAS, but
this will be the only amount shown on the BAS by the ATO. |
| On the reverse side of the BAS will be a GST
"Calculation Sheet" for the tax period to which the particular BAS relates. |
NO GST ON EMPLOYEE FRINGE BENEFITS
The ASCPA has advised that both the ATO and Treasury have indicated there will be no
GST on employee fringe benefits. This advice apparently came from a recent meeting between
the Professional Associations and the ATO and Treasury which discussed FBT reform issues. |
| 15/8/99 |
INVESTMENT RESTRICTIONS STILL A WORRY
FOR DIY SUPER: ASCPA The ASCPA claims that Superannuation Legislation Amendment Bill
(No 4) 1999 will stop small (DIY) super funds from using legitimate investment strategies
but could give big funds unfair advantage.
Mr Murray Wyatt, Chairman of CPAs’ Superannuation Centre of Excellence, said the
Bill creates major problems for DIY funds and is nearly impossible for the regulators to
enforce.
"The Bill creates a complex web of rules that will stop what are very legitimate
investments. Any investment in a related entity or associate, even a commercial,
arm’s length investment, could put the fund trustees in very hot water. Even using an
associated unit trust to make managing your super fund investments a little bit easier
will now be a cardinal sin."
"What is also worrying is that the Bill gives the regulator, be it the ATO or
APRA, the discretion to exempt large super funds from the rules. The Bill lets the
regulators decide what investments can be made by big funds. This means that big super
funds could be allowed to invest in property or provide cheap loans to members using
structures that will likely be illegal for small funds to use." The ASCPA urged the
Government to reconsider the Bill. (Source: ASCPA press release, 11/8/99) |
| 12/8/99 |
ANTI-AVOIDANCE HIGH ON RALPH REFORM AGENDA? It
may or may not be just media speculation, but today’s "Australian Financial
Review" [11.8.99 at p 1] reports that the Ralph Business Tax Review has recommended a
new catch-all general anti-avoidance rule to replace the specifically targetted rules that
have previously existed.
Other recommendations suggested by the AFR article include:
| strengthening Pt IVA by introducing an "effects"
test; |
| tax payments to be aligned with commercial transactions; and
|
| measures to stop large numbers of taxpayers incorporating
after the Ralph review changes. |
The current GST anti-avoidance rule is much wider in scope
than Pt IVA and it will be a lot easier for the ATO to attack an arrangement using the GST
anti-avoidance rule rather than using the provisions of Pt IVA. The reason is simple: the
GST rule can be applied if the "principal effect" of an arrangement is to derive
a GST benefit. ATP has therefore previously highlighted the potential for Pt IVA to be
amended to bring it into line with the GST anti-avoidance rule, and this appears to be
exactly what the above is referring to. No doubt we’ll all soon find out!
NEW DIY SUPER FUND INVESTMENT RULES: BILL INTRODUCED
The Superannuation Legislation Amendment Bill (No 4) 1999 was introduced in the House
of Reps this morning [11.8.99]. The Bill gives effect to changes to the investment rules
for superannuation funds announced in the 1998-99 Federal Budget and to subsequent
announcements by the Government on this issue. It was previously released as an exposure
draft on 22 April 1999.
The Bill amends Pt 8 and s 66 of the Superannuation Industry (Supervision) Act 1993
(SIS Act). Part 8 limits the extent to which a super fund can invest in in-house assets,
and s 66 prohibits the acquisition of assets from members of a fund and their relatives.
The Bill:
| Amends the coverage of the in-house asset rules so that they
include investments in, loans to, and leases and lease arrangements with, a related party
of the fund. In-house investments will also include investments in a related trust. |
| Provides that the in-house asset rules do not cover business
real property leased by a super fund with less than 5 members, or investments in widely
held unit trusts. |
| Provides transitional arrangements for the changes to the
in-house asset provisions. |
| Strengthens the provision that applies where an investment
is not an in-house asset, but has the effect of achieving an investment in an in-house
asset. |
| Amends s 66 of the SIS Act, which prohibits the acquisition
of assets from members and relatives, so that it applies to acquisitions from all related
parties, with specified exceptions. |
| Allows super funds with fewer than 5 members to use up to
100% of their assets to purchase business real property. |
| Provides a number of new definitions eg related party of a
superannuation fund (which includes a member of a fund), a Pt 8 associate of a member of a
fund, a standard employer-sponsor of a fund, a Pt 8 associate of a standard
employer-sponsor of a fund. |
DATE OF EFFECT:
| Investments and loans made before 12 May 1998 are
grandfathered ie they are permanently exempted from the changes. |
| Assets leased before 12 May 1998 are also covered by
grandfathering arrangements. |
| Investments, loans and leases undertaken between Budget
night (12 May 1998) and the date of Royal Assent of the Bill will not be treated as
in-house assets until 1 July 2001, if they would not have been in-house assets under the
existing legislation. |
| Grandfathering also applies to investments, loans and leases
covered by a pre-12 May 1998 contract. |
| There are also provisions to allow further payments on
partly paid shares and units and to allow reinvestment of income received from a related
entity until 30 June 2009. |
| Super funds with fewer than 5 members will be able to make
additional investments and loans into a related company or unit trust until 30 June 2009,
up to the amount of the outstanding debt of the related entity at 12 May 1998. |
|
| 9/8/99 |
TAX REFORM: ATO INFORMATION SUPPORT The ATO
has set up the following tax reform infolines:
| for business on 13 24 78; |
| for tax agents on 13 72 86; |
| for the general public on 13 61 40; |
| concerning wholesales sales tax on 1800 634 905; and |
| concerning diesel fuel on 1300 657 162. |
PAY-AS-YOU-GO (PAYG): In addition, a short tax reform
booklet to be mailed, by the ATO, to all businesses and tax agents during August 1999 will
include a pullout checklist of what to do and when to do it (see below). Two of those
checklist items concern the new PAYG system (which is still before the House of Reps in A
New Tax System (Taxation Laws Amendment) Bill (No 1) 1999). The ATO says in February 2000,
business should expect to receive a PAYG business information kit. As well, in April 2000,
the ATO says entities with early balancing substituted accounting periods ending 31
December 1999 will need to pay their first PAYG instalment.
INDUSTRY SEMINARS: In September 1999, the ATO intends to begin holding Australia-wide
(mostly industry-specific) seminars about the new tax system. These seminars are to be
held in locations that will place them within 100km of 97% of all businesses. (Source: ATO
media release Nat 99/42, 4 August 1999.)
NEW BOOKLETS: The ATO’s "New Tax System" Website (at http://www.taxreform.ato.gov.au select
"Business" and then "Publications") has just released the following
publications:
| "What The New Tax System means for business" (NAT
2847-7.1999); and |
| "Planner - what to do, when to do it" (supplement
to NAT 2925-7.1999) |
|
| 5/8/99 |
HIGH COURT HOLDS LEASE INCENTIVE ASSESSABLE FCT V
MONTGOMERY
The High Court has, by a 4:3 majority, upheld the Commissioner’s appeal in
Montgomery’s case and has found that the lease incentive paid to Freehill Hollingdale
& Page to enter into a lease of premises in Melbourne was assessable as income.
GOVERNMENT RAISES FIRB THRESHOLD TO $50M
The Prime Minister has announced that Australia will increase its existing foreign
investment business acquisition threshold from A$5m (A$3m for rural) to A$50m on a
multilateral basis. This means that the Foreign Investment Review Board (FIRB) will
essentially only screen foreign investment proposals worth more than A$50m. Australia will
also provide simplified processing arrangements for proposals to invest in businesses,
valued at less than $A100m, also on a multilateral basis. The PM made the announcement as
part of a range of changes concerning economic relations with NZ. (Source: Joint Prime
Ministerial Communique, Task Force on Australia NZ Bilateral Economic Relations, 4 August
1999.) |
| 4/8/99 |
THINK AHEAD ABOUT THE GST, SAYS THE ATO The ATO has
urged businesses (and their advisers) to think ahead and plan now for the GST. For
instance, for businesses required to register for GST (eg those with annual turnover of
$50,000 or more; non-profit bodies with annual turnover of $100,000 or more from
commercial activities; and all taxi operators, regardless of turnover), and for those who
wish to do so but for whom registration is not mandatory, the ATO says registration must
be completed by no later than 31 May 2000. Registration will require the obtaining of an
Australian Business Number (ABN) and applications for these Numbers should be possible
from about November 1999. Once an ABN is obtained, the ATO can commence the GST
registration process.
Under the GST, businesses will report their tax obligations and claim any input tax
credits on a new, single activity statement which will replace several current tax forms.
Activity statements will be able to be lodged by business and tax agents electronically.
The ATO says that, from August 2000, businesses lodging monthly GST returns (ie those with
annual turnover more than $20m) should receive their first business activity statement for
lodgment by 21 August 2000. Further activity statements should then be lodged on the 21st
of every month.
In October 2000, businesses lodging quarterly GST returns should receive their first
business activity statement for lodgment by 21 October 2000. Further activity statements
for these businesses should then be lodged on the 21st day of January, April
and July 2001
Clients should contact us early for advice - see also our GST Page |
| 3/8/99 |
THE RALPH REPORT - IT’S IN....NOW THE WAIT Yesterday
[2.8.99], Mr John Ralph AO handed his report on business tax reform to the Treasurer
(press reports suggest it is around 800 pages). Now the wait begins for the
Government’s response and the release of the report itself. Mr Ralph said that both
the Treasurer and the PM have been briefed and that he’d said to them (tongue in
cheek) "all they have to do is stamp OK on the cover and on its way it goes".
After he had delivered his report to the Government, Mr Ralph addressed an Institute of
Chartered Accountants’ (ICAA) luncheon in Melbourne. In questioning after that
address, Mr Ralph made some interesting comments about the review:
| BUSINESS TAXATION: he said the definition of "business
taxation" was very broad and was not confined to just companies - it also covered
individuals in receipt of dividends, rent and interest; |
| TOTAL TAX SYSTEM REVIEW: although the Review looked at the
Government’s ANTS proposals, it went beyond that and effectively looked at the total
tax system and has made recommendations "across the board"; |
| DETAILED PROPOSALS: Mr Ralph said the Review did not just confine itself
to broad policy issues but also addressed the details of its recommendations (so that it
would not just be left to the legislative process); |
| SUPERANNUATION: the review looked at how super funds are taxed under the
new arrangements the same as it did with all kinds of entities eg trusts, companies,
co-ops, etc but it did not look at how super interacts with individuals in terms of
payments, benefits and taxation in the hands of beneficiaries; |
| WHY TAX SYSTEM IS IN A MESS: Mr Ralph believes the tax system is in a
mess not only because of its length and complexity but also because "the processes in
Government have not been very sound in the sense that there hasn’t been any
follow-through from the people responsible for policy for what comes out the other
end"; |
| THE SENATE: "what comes out [of the Parliamentary process] will
depend on what politicians do". Mr Ralph said he hoped the review package would get
through the Senate "a little bit before May [2000]" with an operative date of 1
July 2000 although he did suggest his "form" with getting such reports through
Parliament has not been good. He said "on my form, you wouldn’t back me"; |
| LOSERS; Mr Ralph conceded that there may be some individual companies
that lose from the review package but when it is viewed as a whole, together with indirect
tax reform, "there aren’t any losers"; |
| ACCOUNTING STANDARDS: Mr Ralph suggested Australia should adopt US
accounting standards "because they’re well recognised and if you’re going
to be in the commercial capital markets, you’ve got to report on those
standards". He said it was ridiculous that companies in Australia report on the same
day with 2 different profit figures and 2 different balance sheets - one under US GAAP and
one under Australian GAAP. (Source: Transcript of Q&A session with Mr Ralph after ICAA
luncheon, Melbourne, 2 August 1999.) |
|
| 2/8/99 |
CONSUMERS BENEFIT FROM SALES TAX REDUCTIONS: ACCC The
ACCC has advised that its close monitoring of price movements had shown that the great
majority of retailers had passed on to consumers the reductions in Wholesale Sales Tax
which were effective from 29 July 1999.
ACCC Chairman Professor Allan Fels said his staff visited many retail sites and found
that "prices were being adjusted in line with the ACCC’s Guidelines published
early in July". The first results of a national snap survey of prices conducted by a
professional survey firm for the ACCC showed that prices were being passed on in full and
immediately. This survey indicated that around 90% of prices surveyed had been reduced.
The ACCC said reductions were in line with its expectations eg for televisions, the
reductions have been around 6% to 7% at retail level. Professor Fels said "a small
proportion of retailers who did not pass on the tax savings fully to consumers have been
identified. These retailers can expect to be contacted by the ACCC for an explanation of
why they have not reduced their prices as expected".
The ACCC will conduct further price monitoring to ensure full compliance with the
legislation. The ACCC expects that all retailers will comply with the Guidelines it has
issued. A further comprehensive survey will be conducted at a later date to ensure that
the price reductions are sustained and not clawed back by retailers. (Source: ACCC media
release No 136/99, 30 July 1999.) |
| 30/7/99 |
ATO COMPLIANCE/AUDIT TARGETS The ATO has
outlined its current "compliance improvement programs" and the
industries/taxpayers affected:
| WORK-RELATED EXPENSES: Ongoing project - has been running
since July 1995. Tax agents who are asked to lodge work expense schedules for all clients
claiming more than $300 in work expenses will be briefed by an ATO senior adviser on the
reasons for selection; |
| RENTAL INCOME: Commenced in 1996 and continues in 1999. ATO
to look at potential extension of the project to partnerships, trusts and companies.
Problems include interest deductions, building write-offs and depreciation; |
| SUPERANNUATION: ATO says there is unlikely to be any
substantial audit activity during year ending 30 June 2000. ATO will look at all excluded
funds that opt to become self-managed funds. ATO intends to construct a compliance
assistance tool to educate and inform the funds; |
| CASH ECONOMY: ATO looking at: building and construction
industry; restaurants, cafes and take-aways; clothing industry; fruit and vegetable
industry; bakeries in Tasmania; the taxi industry; |
| INCOME MATCHING: ATO matches information it gets re
Reportable Payments (RPS) and Prescribed Payments (PPS) against information declared in
tax returns. The ATO’s RPS project will look at 9000 cases nationally initially
focussing on SA and NT; |
| NON-COMMERCIAL ACTIVITIES: ATO focus is on taxpayers who
make losses from "non-commercial" activities and offset these against other
income. ATO says such taxpayers generally include Schemes participants. Includes
examination of direct sellers, doubtful primary producers and other hobby businesses; |
| TRUST LOSSES: ATO looking at: level of compliance with trust
loss legislation; and identifying taxpayers "who present the greatest risk to
revenue". ATO reviews taking place across Australia - about 120 tax agents have so
far been sent letters and questionnaires. The trusts selected by the ATO for review had
both significant changes in income as well as large losses available for recoupment; |
| ARTIFICIAL TAX SCHEMES: In this ongoing project (which
commenced in July 1997), the ATO is looking at schemes which appear to give participants
tax benefits in excess of the amount at risk. Some 230 different arrangements will be
examined covering 28,000 participants; |
| DIV 7A: In this project, which is in its early stages, the
ATO is looking to measure compliance with Div 7A, to conduct an education program, and to
carry out enforcement activities; |
| ALIENATION OF INCOME: Looking at income splitting through
use of interposed entities. Project is Australia-wide covering some 65,000 taxpayers and
nearly 2000 tax agents; |
| FBT: Several ATO projects: examining the 16 private company
taxpayers with the largest claims for motor vehicles; visiting tax agents to discuss FBT
procedures; profile tax agents in WA to determine relative levels of prima facie FBT
lodgment compliance; |
| ATHLETES AND ENTERTAINERS: ATO seeking to ensure maximum
compliance re major sporting and entertainment events including 2000 Olympics. Project
commenced in late 1995 and mainly involves non-residents; |
| INTERNATIONAL TRANSACTIONS: ATO suspects high level of
non-compliance by small business involved in international transactions. ATO says 50% of
small business taxpayers using related party dealings do not lodge a Sch 25A with their
tax returns and misunderstand transfer pricing procedures; |
| ELECTRONIC COMMERCE: will look at record-keeping of ISPs,
foreign source income, Internet record-keeping. Up to 60 record-keeping reviews and up to
5 full audits could be conducted in each of Qld, WA and Vic. |
|
| 28/7/99 |
CGT: 1999 JUNE QUARTER INDEXATION FACTOR -
122.3 The CGT indexation factor (which is also used for FBT purposes concerning remote
area benefits) for the June quarter 1999 rose by 0.5 of a point over the March 1999
quarter to 122.3 (up from 121.8 in the March 1999 quarter).
The CPI rose 0.4% in the June 1999 quarter and rose by 1.1% in the year to 30 June
1999. Contributing most to the overall increase in the June 1999 quarter were:
| cost of house purchase - up 1%; |
| cost of automotive fuel - up 5.2%; |
| overseas travel and holiday accommodation - up 7.3%; |
| furniture - up 2.1%; |
| fresh vegetables - down 6.2%; and |
| audio, visual and computing equipment - down 3.1%. |
The Australian Bureau of Statistics (ABS) said factors contributing most to the ANNUAL
INCREASE in the CPI were the cost of house purchase (up 4%), cost of fresh fruit (up
24.8%), cost of private-owned dwelling rents (up 2.6%), cigarettes and tobacco (up 3.2%),
and bread (up 7.9%). Partially offsetting these increases were falls in cost of hospital
and medical services (down 15.4%), motor vehicles (down 3.7%), audio, visual and computing
equipment (down 10.4%), and communication services (down 5.4%). (Source: ABS Catalogue
6401.0, 28.7.99.) |
| 27/7/99 |
MAJOR TAX OFFICE GST EDUCATION PROGRAM:
TIMETABLE The ATO will be conducting a major education program in the coming months
about the new tax system, including the GST. The timetable for the ATO’s planned
activities is summarised below.
AUGUST 1999:
| Consumer and business flyers and fact sheets will be
published and available at the ATO’s Website as well as mailed to tax agents. |
| ATO will release a GST curriculum for tax agents, business
advisers and educational providers that can be used to run GST training courses. |
| ATO will send tax agents and all businesses a short booklet
on tax reform explaining the changes and when they take effect. The booklet will also be
available on the ATO’s Website. |
SEPTEMBER 1999:
| The ATO will make available a number of industry-specific
publications for various sectors including manufacturing, primary production and wholesale
and retail. |
| The ATO will direct mail to tax agents an interim guide to
the GST. It will also be available on the ATO’s Website. |
| The ATO will begin holding Australia-wide seminars about the
new tax system in association with industry bodies. |
FROM NOVEMBER 1999 - GST REGISTRATION:
| ATO field officers will begin working throughout Australia
to help businesses register for the new tax system. |
| ATO will send all registered business taxpayers a
registration kit for GST and an application form for the Australian Business Number (ABN).
The ATO is encouraging businesses to register as soon as possible from November 1999.
Registration will be as simple as filling in one form and can be done by mail or
electronically via the ELS or the Business Entry Point at http://www.business.gov.au . |
| Once registered, businesses will receive a detailed Guide to
GST for Business and a record-keeping guide. |
FROM AUGUST 2000:
| Businesses will report their tax obligations and claim any
input tax credits on a new, single activity statement which will replace several current
tax forms. Activity statements will be able to be lodged by business and tax agents
electronically. Tax agents will be able to do practice runs on the activity statement on
the Internet from January 2000. |
Our strategy is to run an
eductaion program for clients in parallel with this and provide consulting services as
required. Clients are urged to take early steps to prepare and plan for GST. |
| 25/7/99 |
TAX REFORM: ATO ACTIVITIES OVER NEXT 12 MONTHS Over
the next 12 months, the ATO says it will be involved in a number of activities connected
with tax reform, including:
| 1 November 1999 - commencement of business registration for the new tax system; |
| GST: taxpayers entering into contracts (or intending to enter into contracts) which span
or begin on or after 1 July 2000 - tax agents can obtain further information from the Tax
Reform Hotline for tax agents on 13 72 86 of from the ATO’s new tax reform Website at
http://www.taxreform.ato.gov.au (from late
July 1999); |
| the ATO has set up a number of other tax reform Info Hotlines: for business taxpayers -
13 24 78; Sales Tax rate reduction Infoline on 1800 634 905; Diesel Fuel Infoline on 1300
657 162; A Fax From Tax on 13 28 60 (from late July 1999); |
| PAYG: enquiries re this proposed new system can be directed to the Treasury Tax Reform
Hotline on 13 63 20 until the PAYG legislation receives Royal Assent. |
|
Past
Current Affairs Files (directory) ...
|
