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[av_heading heading=’Stay on top of the 1 July changes and how they may effect you…’ tag=’h1′ style=’blockquote modern-quote modern-centered’ size=” subheading_active=” subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”][/av_heading]
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Individuals
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[av_toggle title=’Personal tax bracket changes’ tags=’1,’]
The top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000*.
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[av_toggle title=’Introduction of the Low and Middle-Income Tax Offset*’ tags=’2,’]
providing a tax offset for those with taxable income of up to $125,333.
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[av_toggle title=’GST on property developments and residential subdivisions’ tags=’3,’]
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).
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Business
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[av_toggle title=’Single touch payroll’ tags=’1,’]
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.
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[av_toggle title=’The $20k instant asset write-off for small business has been extended’ tags=’2,’]
until 30 June 201.
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[av_toggle title=’GST on low value goods’ tags=’3,’]
GST will apply to overseas sales of goods supplied to Australian consumers with a value under $1,000.
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[av_toggle title=’GST on property developments and residential subdivisions’ tags=”]
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.
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[av_toggle title=’R&D changes*’ tags=”]
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.
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[av_toggle title=’Changes to the Wine Equalisation Tax’ tags=”]
The rebate cap will reduce from $500,000 to $350,000 and the eligibility criteria tightened.
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Superannuation
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[av_toggle title=’Event based reporting for SMSFs ‘ tags=’1,’]
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
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[av_toggle title=’If all members have a total superannuation balance of less than $1 million’ tags=’2,’]
Report to ATO when lodging annual tax return
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[av_toggle title=’In any member of SMSF have a balance of $1m or more’ tags=’3,’]
Report to ATO within 28 days after the end of the quarter in which the event occurs.
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[av_toggle title=’Carry forward concessional contributions’ tags=”]
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.
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[av_toggle title=’Downsizer contributions’ tags=”]
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.
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[av_toggle title=’First home saver scheme’ tags=”]
First home savers are able to withdraw voluntary (after-tax) superannuation contributions they have made, to put towards their first home.
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[av_toggle title=’Changes to protect employees against inadvertent breaches of concessional caps*’ tags=”]
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).
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*Change has been announced but has not become law at the time of writing.
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