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:
- Payroll tax free threshold will increase from $1.85m to $2m in 2016/17 year
- Land Tax –Increase in fixed charge component of $100
- Conveyance Duty
- Planned decrease in rates to continue
- Separation of rates between commercial and residential from 2017-18
- Disability Duty Concession Scheme
New South Wales:
- Payroll tax rebate of $6,000 for new jobs created after 1 July 2016.
- Introduction of flat transfer duty surcharge of 4% from 21 June 2016.
- Introduction of .75% land tax surcharge on holdings of residential land by foreign persons.
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.
