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PAYG Withholding Tax Deduction Denial

Government has passed a legislation right before Christmas 2018 which will prevent a deduction from being claimed for salary and wages (and certain other payments) by a business that fails to meet its PAYG withholding obligations. This change will apply to payments made from 1 July 2019 onwards. The existing penalties for failing to comply with PAYG withholding obligations are already significant, this adds another financial incentive for businesses to ensure that they are compliant with PAYG withholding obligations.

For All Business – Single Touch Payroll

From 1 July 2018, ATO has enforced a new legislation on the payroll reporting system. The new legislation requests business with 20 or more employees to use the Single Touch Payroll (STP) enabled software to report employees’ payroll information including superannuation. Business with less than 20 employees has to implement Single Touch Payroll system too by 1 July 2019 (this hasn’t been lawed yet). Under the new Single Touch Payroll reporting system, payroll information will be instantly sent to ATO at each pay run.

Ebay and Amazon overseas sellers are hammered by the new GST legislation

Recently, the Australian government has introduced a new GST legislation on the imported low value goods. The new legislation will be effective from 1 July 2018 and it will affect thousands of online platform overseas sellers whose annual GST turnover is over $75,000, such as Ebay, Amazon sellers etc. These overseas sellers under the new legislation will be required to registered GST and reporting their GST on a monthly, quarterly or annually return.

Find Your Suitable Business Structure

If we metaphorize a business to a building, structure to the business will be as important as foundation to the building. A suitable structure can provide tax effectiveness and assets protection to a business. Contemporarily, sole trade, company and trust are common structures used in business. Next, we will use a table to illustrate the difference between these structures. 

Investment property tax return

Investment property tax return can be very tricky and complicated, especially new laws will be enacted according to the recent federal budget. No matter you are in Australia or an overseas investor, you will have to lodge the tax return by 31 October every year if you are having an investment property and earning rental income or capital gain in Australia.

Income tax return and tax deduction

Along with the closing of financial year 2017, here comes the tax return time again. During the years, we have seen many clients made mistake with their tax return and led to either ATO penalty or hundreds and thousands dollars losing in tax payment which shouldn’t have happened if it had prepared by a qualified tax agent.

NSW will raise Surcharge Purchaser Duty and Land Tax Surcharge again to foreign persons

Recently, the NSW government has announced that the surcharge purchaser duty and land tax surcharge will be raised again to foreign person investing in residential real estate from 1 July 2017. The Surcharge Purchaser Duty will be doubled from 4% to 8% and the Land Tax Surcharge will be increased from 0.75% to 2%. NSW government also stated that the raised revenue will be used to help the first home buyer in Australia.

Federal Budget 2017 Tax Highlights

The Australian government has just announced 2017 Federal Budget tonight. At Pitt Martin, we closely keep update our knowledge with government tax legislation and economy changes. Here is some key points we think can be relevant to the tax payers and business owners.

Land Tax Surcharge

From 1st January 2017, if you or your family and associates are a foreign person, your NSW residential land might be subject to 0.75% land tax surcharge charged by Office of State Revenue. For example, if your land value is $1 million, the surcharge will be $7,500. This is on top of the land tax if applicable which is charged $100 plus 1.6% over the threshold $549,000 and up to the premium threshold $ 3,357,000 or $45,028 plus 2% over the premium threshold. Unlike land tax, land tax surcharge is applicable even the land related dwelling is used for main residence.

Tax Planning – Super

Are you a high wages owning employee or a self-employed business owner who paid too much tax last year? There is an effective way to reduce the tax liability by directing the income into your super.

Individual or Corporate Trustee for Self Managed Super Fund

In Pitt Martin, we specialized to help clients set up SMSF and manage the super fund tax affairs. Call us today on 02 9221 3345 or email to connect@pittmartin.com.au.