Here is the latest ATO updates as of July 09, 2018.

• Secure and private information – Webpage on information the ATO collects and related issues including privacy and disclosure.

In order to administer tax and superannuation laws, we collect information about you. We may get this information from you or from other parties, such as:

  • your representative
  • other government agencies
  • banks.

We respect your privacy and keep your information confidential. In some circumstances, the law allows us to disclose your information to others for specific purposes. For example, we have data-matching programs which comply with all government data-matching guidelines.

If you think that your privacy or the confidentiality of your tax information has been breached because of our actions, you should talk to us as soon as possible. If you have already been dealing with a tax officer, your first step should be to try to resolve the issue with them. If you are not satisfied, talk to the tax officer’s manager.

If you are not satisfied with the way we have handled your complaint, the Privacy Commissioner may be able to help you.

• The lower company tax rate – Information on the lower 27.5% tax rate that applies to base rate entities.

Proposed law changes affecting eligibility for the lower company tax rate have not yet passed.

This means the lower 27.5% tax rate continues to apply to your clients who are base rate entities as defined under the current law.

A company was a base rate entity for the 2017–18 income year if it:

  • carried on a business
  • had an aggregated turnover of less than $25 million.

When completing your eligible clients’ 2018 company tax returns, you must:

  • select label F2 Base rate entity at item 3 Status of company
  • use the lower 27.5% tax rate on their calculation statement at label T1 Tax on taxable or net income.

The tax rate is 30% for companies that are not base rate entities.

• GST at settlement – ATO webpage containing information on amendments to GST law on certain property sales from 1 July 2018.

On or after 1 July 2018, certain purchasers of new residential premises or potential residential land will be required to withhold an amount from the price of the supply for payment to us.

Note: When we refer to purchasers we are also referring to lessees under long-term leases.

The withholding amount is due on or before the day that consideration for the supply (other than a deposit) is first provided. If the contract is an instalment contract that will be the day the first instalment is paid otherwise it will be the day of settlement.

Suppliers will be required to assist their purchasers to comply by notifying them whether or not they have a withholding obligation on supplies of certain kinds of residential premises and potential residential land. Where there is a withholding obligation, the supplier must notify the purchaser of the amount they must withhold, when they must pay it to us, and of certain other particulars.

The amount a purchaser must withhold and pay to us is generally either:

  • 1/11th of the contract price (for fully taxable supplies)
  • 7% of the contract price (for margin scheme supplies), or
  • 10% of GST exclusive market value of the supply (for supplies between associates for consideration less than GST inclusive market value).

Purchasers do not need to register for GST just because they have a withholding requirement.

Transitional arrangements apply to contracts entered into before 1 July 2018.

Note: We are open to feedback or improvements about this webpage, and whether or not it meets your needs. Consultation is open until Tuesday 31 July 2018 via Let’s Talk