Stay on top of the 1 July changes and how they may effect you…


Personal tax bracket changes

The top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000*.

Introduction of the Low and Middle-Income Tax Offset*

providing a tax offset for those with taxable income of up to $125,333.

GST on property developments and residential subdivisions

The way GST is collected on sales of newly constructed residential properties or new subdivisions will change from 1 July. Purchasers will be required to remit the GST directly to the ATO as part of the settlement process. If you are buying a property, it is essential that you check the details to ensure that these new requirements have been managed (see this issue in Business also).


Single touch payroll

New business reporting obligations starts soon!

  • 20 or more employees at 1 April 2018?
    • You must report payments such as salaries and wages, PAYG withholding and superannuation from 1 July 2018 using standard business reporting-enabled software
  • 19 or less employees?
    • Single touch payroll is expected to be compulsory for businesses from 1 July 2019.

The $20k instant asset write-off for small business has been extended

until 30 June 201.

GST on low value goods

GST will apply to overseas sales of goods supplied to Australian consumers with a value under $1,000.

GST on property developments and residential subdivisions

The way GST is collected on sales of newly constructed residential properties or new subdivisions will change from 1 July:

  • Vendor will no longer collect and remit GST on the purchase price of the residential premises
  • Vendor must notify the purchaser in writing that the GST needs to be paid to the Commissioner, and
  • Advise amount that must be paid – generally 1/11th of the contract price.
    • Margin Scheme Used: 7% of the contract price
    • Where transaction is between associates, it is 10% of the GST-exclusive market value.

NB: Notification rules will also apply to the vendor, even if the transaction does not trigger a GST liability.

R&D changes*

The way the R&D tax incentive is managed will change with caps introduced on cash rebates and for large companies, a refocussing of R&D to high intensity R&D activities.

Changes to the Wine Equalisation Tax

The rebate cap will reduce from $500,000 to $350,000 and the eligibility criteria tightened.


Event based reporting for SMSFs

A new reporting regime commences for SMSFs – called TBAR.

All SMSFs must report events that affect their members’ transfer balance accounts, for example:

  • When an SMSF member first starts to receive a pension from their fund, or
  • Takes a lump sum from pension account

If all members have a total superannuation balance of less than $1 million

Report to ATO when lodging annual tax return

In any member of SMSF have a balance of $1m or more

Report to ATO within 28 days after the end of the quarter in which the event occurs.

Carry forward concessional contributions

People with super balances below $500,000 will be able to rollover their unused concessional caps for up to 5 years. Unused cap amounts can be carried forward from the 2018-19 financial year; which means the first opportunity to use these new rules will be 2019-20.

Downsizer contributions

If you are over 65, have held your home for 10 years or more and are looking to sell, you might be able to contribute up to $300k of the proceeds from the sale of your home to superannuation.

First home saver scheme

First home savers are able to withdraw voluntary (after-tax) superannuation contributions they have made, to put towards their first home.

Changes to protect employees against inadvertent breaches of concessional caps*

Individuals whose income exceeds $263,157 and have multiple employers will be able to nominate that their wages from certain employers are not subject to the superannuation guarantee (SG).

*Change has been announced but has not become law at the time of writing.