News

GST - is an adjustment for property transactions needed?

It is that time of the year to check your clients' property transactions. A goods and services tax (GST) adjustment may be needed on a client's June activity statement if both of the following apply:

*  they previously claimed an input tax credit for the GST paid on a business asset they purchased

*  they used the business asset differently to the way they originally intended.

For more information, refer to:

*   GST and property adjustments

*  GST property tool

*  our Property home page.

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Changes to GST financial supply provisions

From 1 July 2012 changes to the financial supply provisions of the GST law will come into effect, which clarify the legislation and reduce compliance and administrative costs.

The measures include:

*  increasing the first part of the financial acquisitions threshold from $50,000 to $150,000

* allowing small businesses, that account on a cash basis, to access full input tax credits upfront when they enter into hire purchase agreements

*  excluding bank deposit accounts from the current special rules for borrowings.

For more information, refer to GST financial supply provisions.

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PAYG instalments - GDP adjustment for 2012-13 is 6%

Each year we adjust pay as you go (PAYG) instalment amounts using a formula that takes into account the expected growth in the economy. This is known as the 'gross domestic product adjustment' (GDP adjustment) and is based on data published by the Australian Bureau of Statistics. 

For the 2012-13 income year, the GDP adjustment used to work out your clients' quarterly PAYG instalment amounts will be 6%.

For further information, refer to How we work out the GDP adjustment in your PAYG instalment amount.

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Annual PAYG instalment notices coming soon

Annual PAYG instalment notices will be sent to taxpayers in July. 

Although payment is not due until 21 October 2012, we recommend that you encourage your clients to pay before they lodge their 2011-12 income tax returns. This will avoid confusion over unpaid annual PAYG instalments and minimise the need for your clients to contact us. 

For more information, refer to PAYG instalment essentials.

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New PAYG withholding tax tables will soon be available

New PAYG withholding tax tables will be available online from mid-June. 

You will be able to get paper copies from late June:

*  from most newsagents

*   by visiting one of our shopfronts

*  by phoning our self-help publications ordering service on 1300 720 092.

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Fuel tax credit rates are changing from 1 July 2012

Your clients may be affected by Fuel tax credits - changes from 1 July 2012.

These changes relate to:

*  liquid fuels used in some off-road business activities

*  the introduction of a carbon charge that reduces the rate in some activities

*  a decrease for heavy vehicles travelling on a public road

*  gaseous fuels

*   some blended liquid fuels.

With many rates now changing each year, it is important that your clients keep records of the date, type and quantity of fuel acquired and the activities each fuel was used for.

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Requirements when ceasing a business

If you have a client that has ceased business, there are a number of things they need to do, including:

*  meeting all remaining lodgment, reporting and payment requirements

*  cancelling their Australian business number (ABN) and goods and services tax (GST) registration.

Penalties may apply if your clients don't lodge their activity statements on time. It is also an offence not to notify the Registrar of the Australian Business Register of changes to their circumstances within 28 days. 

For more information, refer to What you need to tell us when your business ceases.

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What's new?

We have selected some of the new and updated documents recently published to our and other government websites, which may be of interest to you as BAS agents.

Keydates for registered agents - June
June key dates for registered agents.

System maintenance and issues
This page contains scheduled downtime and details of issues currently affecting our online services, including minor issues affecting the new Australian Business Register (ABR), which is now live. When using online services via the ABR, you should close your internet browser window each time after logging out, to protect your security online.

GSTR 2012/2
Goods and services tax: financial assistance payments
This ruling provides our view about the way the GST law applies in relation to financial assistance payments, including government grants.

Fuel not used in an internal combustion engine
Explains when you can claim fuel tax credits if you operate a business and use, package or supply fuels for use other than in an internal combustion engine.

14 May 2012 - $30,000 civil penalty ordered against unregistered tax agent by Federal court
The Tax Practitioners Board has issued a media release outlining the Federal Court's decision in the civil penalty case against an unregistered entity.

Foreign exchange rates
List of daily, monthly and annual foreign exchange rates.

Online security
Contains important information about your online security and is regularly updated with examples of the latest scams relating to the ATO.

Workforce education news - May 2012 
This is the first edition of Workforce education news for 2012, covering topics affecting employers, employees, professional associations and their members. Topics include super and tax time information.

Tax crime investigations and results
Find out about tax crime, how we are dealing with it and how you can help.

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