If you are thinking of buying a newly established residential property, or a subdivided property, you may need to remit GST on the purchase directly to the ATO. The following article provides a quick guide to this new legislation, and what to do if you are affected.
The Treasurer handed down the Budget 2018/2019 on 8 May 2018. While there are a lot of proposed changes that will potentially affect individuals such as a 7 year Personal income Tax Plan to lower the income tax liabilities for individuals, there is no certainty as to whether they will become law in future. Meanwhile, let’s recap on the ones that are now law, and will affect taxpayers, especially small businesses immediately. The most important of these is the extension of the less than $20,000 immediate asset write off concession to 30 June 2019 for eligible small businesses.
Do you have a trading name attached to your ABN, or your company/trust’s ABN?
From November 2018, trading names will be removed from ABN Lookup. ABN Lookup is a tool run by Australian Business Register (ABR) to collect or update trading names. They were collecting trading names up till 28 May 2012 when Australian Securities & Investments Commission (ASIC) started a new service to manage the registration of business names. To keep your trading name, you will need to register it as a business name with ASIC. This applies to cases where you trade under a name that is different from your, or your entity’s name.
What should I do now?
You can register for a business name through the ASIC website online here.
To check if your business name details are up to date or not, you can conduct a search from the Business Names Index, or log onto your ASIC Connect account. The link here provides instructions on how to conduct the search.
The following article applies to those who use motor vehicles in the course of running their businesses.
FBT Motor Vehicle Exemption – Updated Guidelines
For many years, many entities have enjoyed a FBT exemption where:
- the vehicle is a panel van, utility (ute) or other commercial vehicle (that is, one not designed principally to carry passengers)
- the employee’s private use of such a vehicle is limited to
- travel between home and work
- travel that is incidental to travel in the course of duties of employment
- non-work related use that is minor, infrequent and irregular (eg: occasional use of the vehicle to remove domestic rubbish).
These have been a grey area and have caused confusion to business owners when attempting to work out whether their vehicles are exempt or not.
The ATO has recently released new guidelines to reduce confusion and provide more certainty for employers when applying the FBT exemptions. The guidance notes relate to the clarification on the definition of an employee’s (and/or their associate’s) private use where it is ‘minor, infrequent and irregular’ for FBT purposes.
If you believe you fall under this category and would like more clarity, contact us for more information and we can talk you through this over the phone, or via email.
2018 FBT Return Lodgement
The FBT year has ended 31 March 2018. For those who require a return lodgement, your FBT Return is due by 21 May 2018. Please contact us for instructions on the lodgement of the return.
Motor Vehicle Odometer Readings
For those who provide motor vehicle benefits to employees and/or associates, it is important that you keep records of your vehicle’s odometer reading as at 31 March 2018.