Residential property purchasers to pay GST directly to ATO
Draft legislation has been announced to propose new GST rules requiring purchasers of newly constructed residential properties or new subdivisions to remit GST directly to the ATO as part of settlement.
This change will impact property developers as currently the GST is included in their purchase price and the developer remits the GST to the ATO. Effectively, they would no longer be required to do this.
Those of us who use conveyancing services to complete property purchases will experience minimal impact from these changes. The new rule is proposed to apply from 1 July 2018.

Single touch payroll reporting starts 1 July
Single Touch Payroll (STP) is a new reporting regime being introduced by the ATO. It will provide real time reporting for payroll processes. STP will enable employers to report salary or wages, pay as you go (PAYG) withholding and super information directly to the ATO at the same time they pay their employees. Organisations with 20 or more employees will be required to start using STP from 1 July 2018.

Company tax rate for small businesses
For the 2016–17 income year, the company tax rate for small businesses decreased to 27.5%. Companies with turnover less than $10 million are currently eligible for this rate.
The reduced company tax rate of 27.5% will however progressively apply to companies with turnover less than $50 million by the 2018–19 income year. From 2024–25, the rate will reduce each year until it is 25% by 2026–27.

Don’t risk your retirement savings
The ATO has launched a new campaign warning trustees and retirees about illegal tax avoidance schemes targeting self-managed super funds (SMSFs). It has been uncovered that individuals have been avoiding or minimising their tax bill by channelling money inappropriately through their SMSF. If you have been approached by a scheme promoter, please seek advice from us before acting.