2019 Top Tax Changes

Wolters Kluwer have prepared a summary sheet of the 2019 top tax changes which affect many individuals and businesses.

Our primary focuses for this topic are:

• For qualifying companies that have an aggregated turnover of less than $50m for 2018/19 and have no more than 80% of their assessable income consisting of “base rate entity passive income”, then the lower corporate tax rate of 27.5% applies. Companies above the $50m will be taxed at the standard rate of 30%.
  • Base rate entity passive income per the Tax Office is:
  • corporate distributions and franking credits on these distributions
  • royalties and rent
  • interest income (some exceptions apply)
  • gains on qualifying securities
  • a net capital gain
  • an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income.
• The immediate write off for assets costing less than $20,000 by small business entities has been extended to 30 June 2019.
• From 19 August 2018, fodder storage assets (such as sheds) can be claimed as an immediate write off by primary producers.
• The Superannuation Guarantee (Administration) Regulations 2018 has replaced the Superannuation Guarantee (Administration) Regulations 1993.
• Purchasers of newly constructed residential premises or new subdivisions are required to remit GST directly to the ATO from 1 July 2018. Generally this would be made by your conveyancer at settlement, so please check with them and your settlement statement. 
• Offshore supplies of low value goods to a consumer will be treated as being connected with Australia and may be subject to GST from 1 July 2018. Generally, if a business provides their ABN and their GST status (assuming they are registered for GST) to the supplier, the supply is GST free for them as it results in a nil payable balance.
• The Taxable Payments Annual Reports has been extended to contractors in the courier and cleaning industries as of 1 July 2018.

You can download the pdf issued by Wolters Kluwer here.