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NEWS - GST CENTRE
GST ruling hits small firms
A new tax ruling threatens to erode small business cash flow and force customers to pay more upfront for goods and services.
Small companies lose GST option
The tax office has warned 740,000 very small businesses that they will have to pay GST for the September quarter after a plan to allow annual payments became embroiled in the federal election.
BAS a battle for micro-players
Micro-business owners still struggle with the business activity statement as accountants complain about delays on GST refunds.
Businesses hit as GST net widens
Many companies may have to pay additional GST bills after the Australian Taxation Office recently ended long-running uncertainty over how the tax should be applied to the sale of businesses.
Review your GST registration
When the goods and services tax was introduced in mid-2000 many self-managed superannuation funds registered for the new tax. Since then, most of the funds that made that decision have reversed it, and many continue to do so.
Tax Office targets GST property rort
The Australian Taxation Office is investigating a scheme used by some developers to avoid paying GST on new property developments, which experts claim is costing hundreds of millions of dollars in revenue.
Tenants will pay GST not landlords
The federal government last week acceded to a Property Council of Australia request by proposing that tenants pay GST on their long-term leases, rather than landlords.
GST takes bankruptcy toll
Sole traders and partnerships that are not coping with the liquidity demands of the new tax system bumped up this year's first-quarter bankruptcy figure.
Surprise GST slug for property developers
Property developers face millions of dollars in additional GST as the Australian Taxation Office cracks down on property valuations.
GST and prize money
High-profile self-employed individuals who rely on prize money and sponsorships for a living could have their earnings reduced following a new tax ruling that argues prize money is potentially subject to GST.
Small business yet to feel the benefits
Small business has spent more than double Federal Government estimates on GST start-up, new research has found, and the major pay-off - a simpler tax system - has yet to arrive.
Firms get hang of BAS
An overwhelming majority of Australian companies are now at ease with the simplified business activity statement - 18 months after the introduction of the GST.
GST bills can hit badly written contracts
Companies are risking million-dollar GST bills and costly court battles as they become increasingly complacent about checking contracts for GST clauses, tax experts warned recently.
Input tax credit complication
Changes proposed recently as part of the Federal Government's capital allowances legislation look set to complicate GST compliance by forcing some businesses to pay back input tax credits.
Be cautious with simplification
Under recent BAS simplification, one option allows small businesses with a turnover of less than $2 million per annum to lodge their BAS annually with quarterly payments based on a tax office estimate.
BAS deadline extended
Businesses struggling with the GST have won another reprieve from the Australian Taxation Office. It has moved to ease the compliance burden by again extending the deadlines for business activity statements.
Farmers big winners in tax overhaul
The Federal Government has unveiled new measures to relieve the burden of the GST on farmers and small business as it attempts to claw back electoral support with its core constituency.
Pulse industry and GST
Growers and traders in the pulse export industry have been uncertain whether their products are GST-free all the way as food, or whether GST is payable on the intermediate stages until it can be claimed back as input credits.
ATO's lease ruling trap
The final version of an Australian Taxation Office GST determination on lease deal residuals has thrown up another possible trap for the unwary, on top of several tricky issues already apparent in the draft version first aired on November 15, 2000.
Second-Hand Goods and GST
If you sell second-hand goods in your business, you may be entitled to a special input tax credit. This credit is determined by a number of factors including who you are purchasing from, your GST reporting method, and the value of the supply.
Taxing time for taxis under new tax system
The taxi industry has a special place under the new tax system due to its reputation as a source of income for casual earners, itinerants, migrants and the like. The ATO spotlighted taxis and hire cars for special treatment when the GST was introduced to ensure that these workers were caught by the new enforcement paperwork.
When mistakes happen
If a person makes a mistake in their first BAS, can they correct it in their second BAS?
No Tax and GST-Free Tax Codes
Under the new tax system, many transactions have a zero rate of tax. However, it can sometimes be difficult to determine the appropriate tax code to use where the tax rate is 0%. This article will explain the difference between the No Tax and GST-free tax codes and give some examples of when they should be used.
GST and long-term accommodation
Concessional GST treatment applies to the provision of long-term accommodation in commercial residential premises used principally for long-term accommodation (i.e. accommodation provided for a continuous period of 28 days or more).
To be classified as providing predominantly long-term accommodation, at least 70% of the business’ guests must stay 28 days or more. For a business that does qualify, it can choose to pay GST on 50% of the price for the guests’ entire stay (that exceeds 28 days or more), or they can treat the supply as being input-taxed. When one of these methods is chosen, all supplies of long-term accommodation must be treated the same way. The method of treatment cannot be changed for 12 months.
Festive hampers - a mixed GST bag
The festive season always places a large emphasis on food, and this year proves that the GST and Christmas cheer are a mixed bag. The ATO has moved to clarify one outstanding GST issue - the difference between a snack pack (previously known as a variety pack) and the traditional Christmas hamper.
GST ruling on vending machines
Owners of most coin-operated vending machines from arcade games to drink vending machines, will continue to absorb the GST despite an amendment to the ruling that some of these machines are exempt.
Money to be returned under latest amendment
Taxpayers whose GST refund was withheld to offset against future tax liabilities will have their money returned under recent amendments to the GST legislation.
BAS partial method allowed by ATO
The Australian Taxation Office (ATO) are allowing businesses in the short term to use a partial method of filling out their Business Activity Statement (BAS). This is also called the ‘Derived from Accounts’ option by the ATO. What this means is that only a small number of the fields on the BAS actually have to be completed. This method may be easier for those completing the BAS manually.
GST blow for firms' tax losses
Companies face a new GST concern after confirmation that the GST is to be levied on tax losses transferred between companies, creating new administrative cash-flow concerns.
ACCC GST Media Release - 29/08/00
"GIO Provides 2,800 GST Refunds on Car Leases. Consumers who entered into car lease agreements prior to 1 July 2000 and have been levied a Goods and Services Tax on their lease payments may, in limited circumstances, be eligible for a refund of the GST paid”, Australian Competition and Consumer Commission Chairman, Professor Allan Fels, said today.
GST ammendments to stop loopholes
The Federal Government has been stamping out GST schemes by the major insurance companies found to be inflating their GST deductions.
BAS in relation to supplies purchased pre July 1
How do you complete your BAS in order to claim input tax credits in respect of periodic supplies purchased pre July 1?
Single or double BAS lodgement?
If you are a quarterly remitter of GST but a monthly remitter of PAYG withholding tax, do you need to lodge a single BAS for September or will you need to lodge two forms - one for your quarterly GST and one for your monthly PAYG withholding?
Wine Equalisation Tax (WET)
On 1 July 2000, the tax arrangements for alcoholic beverages changed. Wholesale sales tax (WST) was abolished and replaced by the wine equalisation tax (WET).
GST registration can be verified on the web
GST registration of suppliers can now be checked on the web.
International purchases and GST
Imported goods are now subject to GST levied at 10% of the landed cost of the goods.
Settlements avoid tax
In Australia's first legal case on the GST, a Queensland judge has ruled that the new tax does not apply to court settlements.
Cash Books - a must for any business
Cash books, or journals, are used to record all of your businesses transactions.
Funding to help you get GST- ready!
So, you’ve called the GST Business Assist Helpline (13 30 88) for help on gearing up your business for GST, and you’ve read up on GST & Business Skills - an Action Guide (available from www.gststartup.gov.au) - what now?
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