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Tax News & Updates

The Federal election in July provided some much needed certainty around the taxation development. ATO has issued some important updates:

Car depreciation limit for 2016/17

The car limit is $57,581 for the 2016/17 (up from $57,466 for the previous year). This amount provides a limit on depreciation and GST input tax credit claims.

Goods taken from stock for private use: 2015/16

The ATO has provided an update of the amounts it will accept for 2015/16 as estimates of the value of goods taken from trading stock for private use by taxpayers in certain specified industries. The amounts (which exclude GST) are:

Type of Business

Adult/Child over 16 years

Child 4-16 years

Bakery

1,350

675

Butcher

800

400

Restaurants/café (licensed)

4,580

1,750

Restaurants/café (unlicensed)

3,500

1,750

Caterer

3,790

1,895

Delicatessen

3,500

1,750

Fruiter/greengrocer

790

395

Takeaway food shop

3,410

1,705

Mixed business (included milk bar, general store and convenience store

4,230

2,115

The ATO recognises that greater or lesser values may be appropriate in particular cases. It says it will adjust the values annually.

SuperStream deadline extended!

With only days to go until the 30 June SuperStream deadline, the ATO noted that, while many small businesses had implemented the required changes, "some small businesses may need extra time and help to become SuperStream compliant". The ATO has announced that for small businesses that are not yet SuperStream ready, it will provide a further extension to 28 October 2016.

State taxes have also undergone some updates:

Australian Capital Territory:

New South Wales:

Sharing Economy Services

 The ATO is reminding taxpayers who earn income through the sharing economy that they have tax obligations they should consider. Examples of sharing economy services include:

  • ride-sourcing - providing taxi travel services to transport passengers for a fare;
  • renting out a room or a whole house or unit on a short term basis;
  • renting out parking spaces; or providing personal services, such as web or trade services, or completing odd jobs, errands, deliveries, etc.

As is usual under the GST and income tax law, the nature of the goods or services they provide and the extent of their activities will determine what they need to do for tax purposes.