October 2023 Newsletter
Contents:
- Small Business Technology Investment Boost
- Who needs the Caymans? 10 ways to avoid paying tax
- How Victoria sows uncertainty with land Windfall Gains Tax
- 88% of employers support a shortened work week: Here’s why
- Top 10 SMSF property questions (and answers)
- Accommodation owners slam Victorian Airbnb tax
- $20k instant asset write-off to get 1-year extension
- What are the steps to creating an action plan for implementing solutions?
- Announcements
Small Business Technology Investment Boost
Small businesses with an aggregated annual turnover of less than $50 million will be allowed an additional 20% tax deduction to support their digital operations and digitise their operations.
The boost applies to eligible expenditure incurred between 7:30 pm AEDT on 29 March 2022 and 30 June 2023. The boost is for business expenses and depreciating assets and is capped at $100,000 of expenditure per income year. You can receive a maximum bonus deduction of $20,000 per income year.
Who needs the Caymans? 10 ways to avoid paying tax
For much of my career in the 1980s, I specialised in global capital markets, arranging transactions worth billions of dollars on behalf of my employers, the Commonwealth Bank and State Bank of NSW. It was great fun, travelling the world at a time when Australian borrowers started using a wide range of offshore funding markets for the first time, and the Australian dollar became desirable for overseas investors.
But the Eurobonds we issued helped rich global investors to evade tax by hiding their wealth from tax authorities.
How Victoria sows uncertainty with land Windfall Gains Tax
The Victorian Windfall Gains Tax (WGT) came into operation on 1 July and applies at the rate of 50 per cent on the uplift in the capital improved value (CIV) of land (less any prescribed deductions of which there are presently none) resulting from a rezoning (WGT event).
Land is rezoned through an amendment to the planning scheme. Not all rezonings will trigger WGT as there are exclusions, exemptions and waivers, including for:
88% of employers support a shortened work week: Here’s why
New research from specialised recruiter Robert Half shows 88 per cent of employers support a shortened work week – either a four-day work week or a nine-day fortnight. This is up from 71 per cent in November 2022.
The reasons behind the increased support for the compressed work week are varied. Forty-five per cent said it comes off the back of employee feedback, while 41 per cent said promising results from other companies that have implemented a four-day work week have made them understand the value of such arrangements.
Top 10 SMSF property questions (and answers)
Here are some great questions on property (and answers from our super experts) asked during our superannuation seminar that just wrapped up.
How do we transfer a property worth $2 million?
At $2,000,000, it gets difficult to transfer within contribution cap limits (unless we are using SBCGT as well) and not cop stamp duty. Basically, in Victoria, if the fund is paying for the property (either with cash or by borrowing) then there will be stamp duty – at least on this “paid” portion.
Accommodation owners slam Victorian Airbnb tax
Short term rental owners have hit out at the Victorian government’s new 7.5 per cent tax on short stay accommodation announced yesterday as part of the Andrews government’s Housing Statement.
Among the criticisms are a lack of detail over how the tax will work, a lack of consideration over how it interacts with other taxes, a lack of understanding of the short term rental industry and questions over whether it will make any impact on the provision of more affordable long term housing in the state.
$20k instant asset write-off to get 1-year extension
Small businesses will be able to claim an immediate deduction for assets less than $20,000 under amendments to the Income Tax (Transitional Provisions) Act 1997 introduced to Parliament on Wednesday.
Nearly four million small businesses with an annual turnover under $10 million will be eligible under the scheme, which is estimated to cost the government $290 million over five years.
What are the steps to creating an action plan for implementing solutions?
Announcements:
This month we congratulate Tony (18) for achieving a significant work anniversary. We also wish Tony, Grant & Nicole a very happy birthday!|
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Important ATO Dates
| Lodgement Program | Date |
| September monthly activity statements | 21/10/2023 |
| Quarter 1 (July–September) PAYG instalment activity statement | 21/10/2023 |
| Annual PAYG instalment notice | 21/10/2023 |
| Quarter 1 (July–September) activity statements | 28/10/2023 |
| Quarter 1 (July–September) instalment notices (forms S and T) | 28/10/2023 |
| Final date for electing to pay GST by instalments | 28/10/2023 |
| Quarter 1 (July–September) instalment notices (forms R and T) | 28/10/2023 |
| Quarter 1 (July–September) – super guarantee contributions | 28/10/2023 |
Other News
Office Closed
Fuel Tax Credit Change
We are letting clients know that there have been a number of changes to fuel tax credit rates. The main changes have been:
- Fuel tax credit rates have updated for September 2023 Quarter
- Heavy Vehicle FTCC Rate actually went down at 1 July 2023
- Fuel acquired on farm on/after 1 August 2023
What this means?
- For those preparing their own BAS please note that there are new rates (see below).
- Where Watts Price prepares your BAS we will need copies of Fuel Delivery Dockets OR Detailed Tax Invoices/Statements, this is to ascertain the date fuel was acquired on farm for this quarter. Please include these (dockets, invoices, statements etc) when providing your quarterly September Quarter BAS information.
If you have any questions please contact our office!
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Table 1: Rates for fuel acquired from 1 August 2023 to 4 February 2024 |
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Eligible fuel type |
Used in heavy vehicles for travelling on public roads (see note 1) |
All other business uses (including to power auxiliary equipment of a heavy vehicle) (see note 2) |
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Liquid fuels – for example, diesel or petrol |
20.0 |
48.8 |
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Blended fuels: B5, B20, E10 |
20.0 |
48.8 |
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Blended fuel: E85 |
0 |
20.92 |
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Liquefied petroleum gas (LPG) (duty paid) |
0 |
15.9 |
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Liquefied natural gas (LNG) or compressed natural gas (CNG) (duty paid) |
0 (see note 4) |
33.4 |
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B100 |
0 |
13.0 |
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Table 2: Rates for fuel acquired from 1 July 2023 to 31 July 2023 |
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Eligible fuel type |
Used in heavy vehicles for travelling on public roads (see note 1) |
All other business uses (including to power auxiliary equipment of a heavy vehicle) (see note 2) |
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Liquid fuels – for example, diesel or petrol |
18.9 (see note 3) |
47.7 |
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Blended fuels: B5, B20, E10 |
18.9 (see note 3) |
47.7 |
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Blended fuel: E85 |
0 |
20.415 |
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Liquefied petroleum gas (LPG) (duty paid) |
0 |
15.6 |
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Liquefied natural gas (LNG) or compressed natural gas (CNG) (duty paid) |
0 (see note 4) |
32.7 |
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B100 |
0 |
12.7 |
Note 1: From 1 November 2019, this rate includes fuel used to power passenger air-conditioning of buses and coaches.
Note 2: Claims for packaging or supplying fuel can use the ‘all other business uses’ rate for the appropriate eligible fuel type.
Note 3: Fuel tax credit rates change for fuel used in a heavy vehicle for travelling on a public road due to changes in the road user charge. The heavy vehicle road user charge will increase by 6 percent each year over 3 years from 28.8 cents per litre for petrol and diesel in 2023–24, to 30.5 cents per litre in 2024–25 and to 32.4 cents per litre in 2025–26.
Note 4: The road user charge rate for gaseous fuels per kilo gram rate will increase from 38.5 cents per kilogram in 2023–24, to 40.8 cents per kilogram in 2024–25, and to 43.2 cents per kilogram in 2025–26. Currently, the road user charge reduces fuel tax credits for gaseous fuels to nil.