Monthly Archives: December 2017

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Client impact statement: Couriers and cleaners to report contractor payments

The government will extend the taxable payments reporting system to contractors in the courier and cleaning industries, with effect from 1 July 2018.

These changes were recommended in the Black Economy Taskforce that was released on Budget night. The expansion of this reporting system follows its successful implementation in the building and construction industry.

From 1 July 2018, all entities predominately in the courier or cleaning industry will need to report the following to the Australian Taxation Office. A list of each contractor and their ABN, name, address, the gross amount paid to them in the financial year (including GST), and the total GST included (if any) in the gross amount paid.

It is noted in the exposure draft to the legislation that the terms “courier” and “cleaning” are not defined, and are intended to take their ordinary meaning. However, the ATO has mentioned that the following services are not considered to be courier services for the purposes of this system:

 

  •  passenger transport services, ie buses and taxis
  • transporting of blood, blood products, organs or tissue, or
  • freight transport.

Also, entities in these industries are reminded that the following payments are not required to be reported on:

  • Payments for materials only
  • Unpaid invoices as at 30 June each year (for an annual report)
  • PAYG withholding payments, as these are already reported elsewhere, and
  • Payments within consolidated groups.

 

Risk mitigation steps

This amount of reporting brings payments to contractors into line with the reporting of salary and wages paid to employees in these industries.

An intention of this type of policy is to ensure the industry at large is doing the right thing and paying workers appropriately. Whether an individual providing services on behalf of a principal as an employee or a contractor is a question of fact based on substance over form.

While there are legislative tests that require application to determine this issue, they mostly seek to capture the essence of the common law that has developed over time in relation to this issue. CCH iKnow has a wonderful chapter devoted to the question of Contractor versus Employee which will assist you in making the right decision based on the individual circumstances of each case.

 

Implementation process

The legislation states that the payments are required to be reported every quarter, however, it is expected that the Commissioner of Taxation will allow an annual report to be lodged by the businesses in these industries, consistent with the requirements for the building and construction industry.

It is important to note that there will be no need to report payments made for private and domestic purposes. This expansion of the taxable payments reporting system will be applicable to businesses whose primary industry is in the courier and cleaning industries. The policy intention is to improve compliance of both the businesses and the contractors in these industries.

 

The source of this content is CCH‘s professional information services. Thompsons Australia has a professional subscription with CCH providing access to in-depth quality technical information and commentary used by Thompsons Australia in keeping staff and clients currently in formed.

What is stamp duty?

Stamp duty is a tax on written documents (‘instruments’) and on certain transactions. It is imposed by state and territory governments. It can vary depending on the state or territory, and may be called stamp duty, transfer duty or general duty.

 

What transactions are taxed?

 

Taxable transactions include:

  • motor vehicle registration and transfers
  • insurance policies
  • leases and mortgages
  • hire purchase agreements
  • transfers of property (such as businesses, real estate or certain shares).

The rate of stamp duty varies according to the type and value of the transaction involved.

 

Are there any stamp duty concessions or exemptions?

Depending on the nature of the transaction, certain concessions and exemptions may be available.
See the Stamp duty page on the Australian Taxation Office (ATO) website for a list of the concessions and exemptions and how these differ across state and territories.

What to do…

Find out more information about duties that apply to your business:

Housing affordability Bills passed by Senate

The Senate has passed the Bills outlined below, part of the government’s housing affordability package announced in the 2017 Budget, without amendment.

 

Treasury Laws Amendment (Housing Tax Integrity) Bill 2017

This Bill implements an annual vacancy charge on foreign owners of residential real estate where property is not occupied or genuinely available on the rental market for at least six months in a 12-month period. The vacancy charge, to be administered by the ATO, applies to foreign persons who make a foreign investment application for residential property from 7.30 pm (AEST) on 9 May 2017.

 

From 1 July 2017, travel costs for individual investors inspecting and maintaining residential investment properties will no longer be deductible and the expenditure is not recognised in the cost base of the property for capital gains tax (CGT) purposes.

 

The Bill also denies deductions for depreciation of previously used depreciating assets used in gaining or producing assessable income from the use of residential premises for residential accommodation.

 

Foreign Acquisitions and Takeovers Fees Imposition Amendment (Vacancy Fees) Bill 2017

 

This Bill which is complementary to the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017, amends the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 to impose vacancy fees on foreign acquisitions of residential land.

 

The source of this content is CCH‘s professional information services. Thompsons Australia has a professional subscription with CCH providing access to in-depth quality technical information and commentary used by Thompsons Australia in keeping staff and clients currently in formed.

the Special Children’s Christmas Party

It is the leadup to Christmas and one of our favorite ways to celebrate each year is to participate in and sponsor the Special Childrens Christmas Party. It is great to see that everyone had such an amazing time. This is an update and thankyou from the organisers of the event. You can find them on facebook at https://www.facebook.com/SCCPDarwin/

 

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Just look how much she has grown! One of the most amazing things about what we do is watching these little angels grow. (2013 and 2017 photos)

 

Thank you so much for your support of the Special Children’s Christmas Party
and for giving hundreds and hundreds of local families just like Vivienne’s a perfect day. We couldn’t have done it without you.

To all the first time families who attended, and there were many, we hope you enjoyed the day and made some wonderful family memories and we thank you all for your patience and smiles when the queues got a little long.

Here’s some of the feedback …
Joanne Cooter Thank you to all the volunteers and sponsors. Amazing Party. 🙏🏼
· December 10 at 2:01pm

 

 

4 halls of the Darwin Convention Centre filled with joy!

We wish you and yours a Merry and safe Christmas and a New Year filled with great fun and beautiful memories.