Goods And Services Tax Changes
Digital Currency & GST
From July 1, 2017, the Government will align the GST treatment of digital currency (e.g. Bitcoin) with money. Digital currency is currently treated as intangible property for GST purposes. Consequently, consumers who use digital currencies as payment can effectively bear GST twice, once on the purchase of the digital currency and again on its use in exchange for other goods and services subject to GST. This measure will ensure purchases of digital currency are no longer subject to the GST.
Low-Value ImportsRetailers will be disappointed to hear that plans to impose the GST on low-value imports has been deferred for another 12 months to July 1, 2018. This will disadvantage them in comparison with international retailers, particularly those that dominate the online sector.
The issue of whether GST should apply to low-value imported goods has been the subject of many reviews and on March 23, 2017 the Government’s bill to extend GST to low-value goods imported by consumers was referred to the Senate Economics Legislation Committee. The committee published its final report on May 9, 2017 and noted concerns about the proposed implementation date due to the complexities of the proposed collection mechanism and the policing of non-compliance. It recommended that the bill pass but that the introduction of the new tax be delayed to July 1, 2018.
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Other Articles in This Edition:
Some of the Biggest Mistakes Small Businesses Make With Their Websites
Federal Budget – Economic Summary
Small Business - $20k Small Business Immediate Tax Deduction
Small Business - Company Tax Rates
Small Business - Extension of Taxable Payments Reporting to Courier and Cleaning Industries
Small Business - Access to CGT Concessions
Small Business - Looking to Employ Foreign Workers?
Individual Tax Rates
Individuals - Changes to the Medicare levy
Restricting Residential Investment Property Deductions
Individuals - Higher Education Reform
Superannuation - Contributing Proceeds from Downsizing to Superannuation
Superannuation - First Home Super Saver Scheme
GST Changes - Purchasers to Pay GST on New Residential Premises
Tax Integrity Measures
DISCLAIMER: This document contains general advice only and is prepared without taking into account your particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should speak to a licensed financial advisor who should assess its relevance to your individual circumstances. While the firm believes the information is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.