GST crackdown looms for online sales

Original article by Nick Tabakoff
The Australian – Page: 7 : 28-Jun-18

The goods and services tax will apply to purchases of up to $A1,000 via overseas-based online marketplaces from 1 July. The Australian Taxation Office has signalled that it will use all of the tools at its disposal to ensure that multinational e-commerce groups comply with the new GST rules, including targeted audits and financial penalties. The ATO’s Tim Dyce says that about 3,200 international online marketplaces will have to be registered to collect and remit GST when the changes take effect.

CORPORATES
AUSTRALIAN TAXATION OFFICE, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AMAZON.COM INCORPORATED, GOOGLE INCORPORATED, FACEBOOK INCORPORATED

GST stoush looms ahead of byelections

Original article by Andrew Tillett
The Australian Financial Review – Page: 11 : 31-May-18

Federal Treasurer Scott Morrison recently received the Productivity Commission’s final report on changes to the distribution of goods and services tax revenue. Prime Minister Malcolm Turnbull has told parliament that the report will be released prior to the five upcoming by-elections in late July. He also said the government will take its time in formulating a response to the report’s recommendations, and stressed that no state or territory will be disadvantaged by any changes to the GST system.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF WESTERN AUSTRALIA, CENTRE ALLIANCE

Developers warned about GST trap on unsold units

Original article by Duncan Hughes
The Australian Financial Review – Page: 37 : 15-May-18

Tax adviser Ken Fehily has urged property developers who rent out newly-completed apartments because they are struggling to sell them to be mindful of their goods and services tax liabilities. He says developers in this situation could be triggering GST liabilities without being aware of it, and that they will certainly have to pay the full GST when they eventually sell the apartment. Capital Economics expects Melbourne apartment prices to fall by nine per cent in 2018, while Sydney apartment prices are tipped to decline by four per cent.

CORPORATES
CAPITAL ECONOMICS LIMITED, AUSTRALIAN TAXATION OFFICE, FEHILY ADVISORY

PM splurges on projects to soothe WA’s anger over GST carve-up

Original article by Andrew Tillett
The Australian Financial Review – Page: 3 : 27-Apr-18

Prime Minister Malcolm Turnbull has offered to give Western Australia a $A187 million top-up goods and services tax payment. The money is to be spent on expanding or refurbishing three hospitals, while Turnbull is also expected to announce funding for extra train stations and a road bypass in outer Perth suburbs. The Liberal Party currently holds 11 of the 16 federal seats in WA, but five are held with a margin of less than seven per cent.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, LIBERAL PARTY OF AUSTRALIA

Gold traders’ scam ripped off $1bn GST

Original article by Ben Butler
The Australian – Page: 21 : 1-Mar-18

The Australian Taxation Office estimated in February 2017 that goods and services tax fraud by gold traders had cost the federal government around $A700m in revenue. However, ATO deputy commissioner Timothy Dyce has told a Senate committee that the forgone revenue may now be almost $A1bn. He added that legislation enacted in April 2017 has closed the loophole which enabled gold traders to avoid GST liability.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, NATIONAL PARTY OF AUSTRALIA

Wage growth to pick up

Original article by Laura Tingle, Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 5-Feb-18

Federal Treasurer Scott Morrison argues that a proposed across-the-board reduction in the company tax rate will boost wages and job security, noting that US companies have already begun increasing wages in the wake of the Trump administration’s tax reforms. He has called on businesses to promote the benefits of the proposed company tax cuts for the broader economy. Morrison has also indicated that financing personal income tax cuts via an increase in the goods and services tax will not be on the Coalition’s policy agenda for the next federal election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

WA Lib leader issues political suicide GST warning to Turnbull

Original article by Brad Thompson
The Australian Financial Review – Page: 5 : 12-Jan-18

Western Australia’s Opposition Leader Mike Nahan is generally supportive of the Productivity Commission’s recommendations regarding the distribution of goods and services tax revenue. However, he has suggested that the Australian Capital Territory and the Northern Territory should be directly funded by the Federal Government, and GST revenue should be distributed solely to the states. Nahan also says any attempt by the Federal Government to make changes to the GST cannot succeed without the Australian Labor Party’s support.

CORPORATES
LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE CHIEF MINISTER

Fresh GST fight with states looms

Original article by Andrew Tillett
The Australian Financial Review – Page: 3 : 3-Jan-18

Federal Treasurer Scott Morrison has given the Productivity Commission more time to complete its review of how the goods and services tax is distributed among the states. The PC had been due to complete its inquiry by 31 January, but has now been given until 15 May. The delay is expected to particularly upset Western Australia, which has long contended that it loses out under the current GST distribution model. Morrison says the PC’s interim report into the GST has clearly shown the current system is "broken" and needs to be fixed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

IPA advocates income tax power be given to states

Original article by Brad Thompson
The Australian Financial Review – Page: 12 : 12-Dec-17

The distribution of goods and services tax revenue between the states and territories continues to attract scrutiny. The Institute of Public Affairs has proposed the adoption of a system of "competitive federalism", whereby the states would be responsible for setting their own GST rate and retaining the revenue. IPA executive director John Roskam suggests that the states and territories could also be allowed to impose their own income taxes, but notes that they baulked at this when the idea was put forward by Prime Minister Malcolm Turnbull in 2016.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION

Developers told GST changes out of left field despite talks

Original article by Duncan Hughes
The Australian Financial Review – Page: 10 : 4-Dec-17

Changes to the goods and services tax treatment of property transactions are due to take effect on 1 July 2018, although they must first be passed by parliament. They are aimed at preventing a practice known as "phoenixing", whereby developers close their business before they have settled their GST obligations, and start up another entity under a different name. The changes are tipped to boost GST collection by $A660 million over four years, but developers are concerned that they will face more red tape and greater compliance costs.

CORPORATES
AUSTRALIAN TAXATION OFFICE, FEHILY ADVISORY