Socials

Socials

The Commissioner of Taxation (the Commissioner) has proposed changes to the requirements that a recipient must satisfy to issue a Recipient Created Tax Invoice (RCTI).  The proposed changes are detailed in draft Legislative Instrument LI 2022/D15 (the Draft) which has been released for public consultation. 

The Draft is intended to replace 51 separate Legislative Instruments that currently specify recipients, circumstances and requirements that enable RCTIs to be issued.  This consolidation into a single Legislative Instrument is a positive simplification and aims to enable recipients to self-assess their eligibility more easily.

Who can issue Recipient Created Tax Invoices (RCTI)?

Holding a valid tax invoice (including a RCTI) is a prerequisite to claiming input tax credits, so ensuring compliance with these requirements is fundamental to meeting GST obligations for affected taxpayers.  Usually, it is the supplier of a taxable supply (e.g. the service provider) who will issue a tax invoice to the recipient (e.g. the customer). 

However, the Commissioner has the power to specify a class of tax invoices that may be issued by the recipient of the taxable supply, rather than by the supplier. This is relevant particularly in circumstances where the value of the supply is established by the recipient rather than the supplier, including where analysis of goods must be undertaken before their value can be ascertained.

The Draft is expected to have impact on GSTR 2000/10 which sets out generic rules which allow the use of RCTIs, without the need to apply to or notify the Commissioner.  Under the Draft, recipients that may issue RCTIs, subject to satisfying the relevant requirements as set out in the Draft, are:

The requirements that must be satisfied by a recipient depend in part on the category of entity.  Where a recipient falls into more than one category, it only needs to satisfy the requirements applicable to at least one category.

Verification of GST registration

Section 7 of the Draft sets out the relevant requirements.  In broad terms these are largely consistent with current administrative practice. However, one critical change is the requirement for a recipient to take positive action to verify that the supplier is registered for GST. This verification needs to be done each and every time a RCTI is issued. This change is significantly more onerous than the current requirement to be reasonably satisfied of the GST registration of the supplier.

Should the Draft be implemented in its current form, many businesses issuing RCTIs will need to ensure that processes are in place to satisfy this verification requirement and retain evidence to substantiate that this requirement was satisfied. 

How we can help

Submissions in relation to the Draft are required by 16 December 2022 and SW would be happy to take into consideration your comments.

The Draft will take effect the day after the final instrument is registered, which is expected in early 2023. A submission point will be to request a transition period.

However, if you currently rely on one of the existing 51 Legislative Instruments when issuing RCTIs, we advise you to revisit your existing current RCTI arrangements to confirm compliance with the Draft before it takes effect.

If you would like to discuss the Draft, or your current RCTI arrangements, please contact any of the SW tax Directors listed or your primary SW contact.

As the calendar year comes to an end, we get closer to the FBT year-end.  This year we have seen two key changes that employers need to be aware of as they may impact their FBT Returns. 

Electric Vehicles and FBT 

On 25 November 2022, the Australian Government passed the Treasury Laws Amendment (Electric Car Discount) Bill 2022, which provides a fringe benefits tax (FBT) exemption for low and zero-emission cars from 1 July 2022. 

The exemption will only apply to the following cars:  

Key points to note in relation to this exemption are: 

This exemption is available even if the vehicle is salary packaged.  This is, therefore, a great opportunity for employees to salary package these cars, which can result in significant savings for them.  It is estimated that the annual tax savings on a $74,000 electric car is $14,400. 

FBT Record keeping changes 

Proposed changes1 have been released to give the Commissioner powers to modify, existing FBT record-keeping obligations, which will allow employers to rely on existing corporate records, instead of existing employee declarations and other prescribed records. 

The purpose of the change is to reduce compliance costs for employers when finalising their FBT returns by providing them with an option to rely on existing or other alternative records that they may hold.  However, where an employer wants to continue with the current practice, they may continue to obtain employee declarations. 

Treasury has also released two draft legislative instruments that provide guidance on what alternative records may be acceptable with respect to travel diaries and the relocation transport declaration.  These are summarised below: 

Travel diaries to apply the otherwise deductible ruleRelocation transport provided to relocating employees
– be in English and contain the name of the employee receiving the benefit; 

– note the duration of travel;
 
– for each activity undertaken by the employee in the course of producing their assessable income while undertaking the travel, the: 

– place where the activity was undertaken; 
– date and approximate time the activity commenced; 
– duration of the activity; and 
– nature of the activity. 
– name of employee or associate of the employee receiving the benefit;

– number of family members travelling in the car; 
– make and model of the car driven; 

– address of the departure and arrival locations; 

– date(s) of travel; 

– total number of whole kilometres travelled between the address of departure and the address of arrival. 

There is no limit on the number of records that may, in aggregate, meet the information requirements, and information can come from multiple sources.  So, in practice if the employee’s calendar includes sufficient details, it may be the only record that employers need to maintain. 

If the bill receives Royal Assent by 31 March 2023, it is expected that the measures will be first effective from the FBT year commencing 1 April 2023. 

If you have any questions in relation to this FBT exemption, please contact your usual SW advisor. 

Contributors:

Rahul Sanghani, Senior Manager

Ophelia Katrivessis, Senior Consultant


1 The Treasury Laws Amendment (2022 Measures No 4) Bill 2022 

我们诚邀您参加我们即将举办的线上讲座,了解近期财务与税法的重大更新可能对贵公司产生的影响,以及回顾近期工党联邦预算案的重要内容。
We would like to invite you to join us online at the upcoming Update, where we will be discussing recent significant tax/accounting changes as well as their potential impacts to your business, and a revision of some key announcements from the most recently released Federal Budget by the Labor Government.

税务与会计主题汇总 Summary of tax & accounting topics

详情 | Details

日期Date2022年11月25日星期五
Friday 25 November 2022
时间 Time
布里斯班
Brisbane – 3pm – 4pm AEST 
墨尔本/悉尼 
Melbourne / Sydney 4 – 5pm AEDT 
珀斯 
Perth 1pm – 2pm AWST
地点
Location
线上
Online

线上专家团队 | Your guides online

张洋 Bessie Zhang 
合伙人 Partner

栾万博 Leo Luan 
合伙人 Partner 

时炜淞 Vincent Shi 
合伙人 Partner

施洋 Yang Shi
合伙人 Partner

联系我们 | Contact us

若您有任何疑问或想了解更多详情,欢迎通过 [email protected] 联系本所市场团队。
If you have any queries or would like more information, please contact the Marketing team via [email protected]

信永中和澳大利亚会计师事务所 SW Accountants & Advisors,查看更多最新资讯与活动。
Follow our WeChat account to stay updated on insights and our other webinars.  

For the first time in over three years, the International Mining and Resources Conference (IMARC) is welcoming attendees in person – this year, in Sydney.

SW is proud to be part of the conversation at IMARC for the fifth time, taking the lead on sustainable and equitable futures by sponsoring the Investment Theatre.

With a global focus on the energy transition, key themes at the conference will look at how mining and resources are accelerating the energy transition, the different decarbonisation solutions and strategies available to market, the role of renewables and hydrogen, and the ever growing investment and support for critical and future facing minerals.

Rick Hemphill, John Dorazio and Blayney Morgan will be introducing critical minerals and mining companies to the stage in the Mines & Money Investment Theatre, and the team will facilitate several panels as detailed below.

Reimagining the future and reinventing the way we approach it.

Panel discussions

11.55am Wed 2 November | Mines & Money Investment Theatre

Interviewer: Bessie Zhang, Partner, Assurance & Advisory, SW Accountants & Advisors

Interviewees: Owen Hegarty, Executive Chairman, EMR Capital

Jacqueline Murray, Partner, Investment Team Leader, Resource Capital Funds

David Sun, Managing Director, Sinosteel Australia

Top ESG Considerations when Investing and Financing Mining Projects

2.55pm Wed 2 November | Mines & Money Investment Theatre

Interviewer: Matthew Schofield, Director, Head of Corporate Finance, SW Accountants & Advisors

Interviewees: Scot Sobey, Investment Director, Pacific Road Capital

Jamie Strauss, Chief Executive Officer, Digbee

Andrew Irvine, Legal and Corporate Engagement Director, EITI

12.05pm Fri 4 November | Mines & Money Investment Theatre

Interviewer: Blayney Morgan, Partner, Assurance & Advisory, SW Accountants & Advisors

Interviewees: Loic Mackosso, Founder and Managing Partner, ARIES Investissements

James Morrison, Managing Director, Regal Resources Royalties Fund

Christofer Catania, Chief Executive Officer, MEC Mining

Connect with the SW Accountants & Advisors team on the IMARC Connect app or in person next week to see how we can #opendoors for your business.

On 6 October 2022, the ATO released a Draft Ruling TR 2022/D2, which provides some clarification of the ATO’s view of individual tax residency and the relevant tests. 

With the increase in flexible working alternatives, changes in international working arrangements, the uncertainty surrounding COVID-19 and the border restrictions that have been put in place over the recent years, the question of tax residency has become increasingly relevant and contentious.

The new ruling, TR 2022/D2, which replaces former rulings IT 2650 and TR 98/17,TR 2022/D2 does not appear to re-write the rule book but provides some firmer language on some of the ordinarily resides concepts and the factors to be considered. A contemporary interpretation of the existing legislation, it includes 14 modern examples to assist in understanding the ATO’s current view of the individual tax residency rules.

It also takes into account recent developments in case law, including but not limited to Harding v Commissioner of Taxation [2019] FCAFC 29, Pike v Commissioner of Taxation [2019] FCA 2185 and Addy v Commissioner of Taxation [2019] FCA 1768.

The ruling does not, however, provide a primary ‘bright line’ test as proposed by the former Government in the 2021-22 Federal Budget.

The primary ‘bright line’ test is where a person who is physically present in Australia for 183 days or more in any income year will be an Australian tax resident. It is unknown whether the current Federal Government will continue with the previous Government’s proposed changes to replace the individual tax residency rules and introduce a ‘bright line’ test.

The ATO is seeking comments and feedback by 25 November 2022.

Key takeaway

The devil is still in the ‘facts and circumstances’ of individual cases. Whilst the Draft Ruling steps through 14 examples, each situation comes down to the particular facts and circumstances of the specific taxpayer, and varies for each person.

The SW Tax team is keen to see whether the upcoming Federal Budget; the first for the new Federal Government, will shed any further light on likely future developments.

How can SW help?

Reach out to your SW advisors if you would like more information about your tax residency or what the Draft Tax Ruling might mean for you.

Contributor

Justin Batticciotto, Associate Director, Tax

Global adoption of digital technologies has affected every industry, employee, customer, workplace, product and service.

On 18 October 2022, SW’s Danny Armstrong sat down with CEOs Ruslan Kogan, Founder and CEO Kogan.com (ASX:KGN), Guy Carvalho, Co-Founder & CEO IBoA a member of Novatti Group (ASX:NOV) and Kurt Hansen, CEO Tesserent (ASX:TNT) to explore what digital transformation has meant for their businesses.

It was a candid, informative and interesting conversation. We invite you to take a look.

Includes chapter markers

SW experts have prepared a video series to tell you everything you need to know about migrating to Australia. 信永中和專家為您講解移民澳洲的所有需知事項。

Family Trust structure in Australia | 詳解澳洲家族信託架構(粵語中字)

本次採訪中,信永中和董事秦建樂將為觀眾們介紹澳洲家族信託架構及其對海外投資者和移民的意義。他將會講解家族信託架構的基本情況,設立家族信託的好處,移民應注意的重要事項以及家族信託的一些限制。

Transfer Pricing | 轉讓定價(國語中字)

本次採訪中,信永中和董事施洋將為觀眾們介紹轉讓定價(Transfer Pricing,簡稱TP)的相關問題。

Setting up a business | 在澳洲開設企業(國語中字)

本次採訪中,信永中和董事時煒淞(Vincent Shi)將介紹澳大利亞各種商業架構以及如何設立這些架構。 不同行業的從業人員可能做法不一,我們會探討如何選對商業架構、設立架構、申請ABN、GST等等,以及劃重點,即相比於中國(含香港)等國家,澳洲市場有何獨特之處。

Migration Visa | 移民簽證(英語中字)

每年7月1日,澳大利亞移民計劃都會有政策更新–這對海外人士來說意味著新的機會。信永中和澳大利亞企業投融資總監吳小小(Natasha Wood)女士會講解2022年某些簽證類別要求的變化和數量增加,並回顧了永久居民(PR)簽證的申請途徑。

Investing in Australia | 澳洲投資(中文字幕)

對於剛來澳洲的移民可能會覺得投資澳洲的股票和ETF相當複雜。信永中和顧問傅伊人 (Yvonne) 會在本次採訪中介紹澳洲的投資過程,討論如何確定投資的方向,並向我們解釋了什麼是ETF以及為什麼ETF是投資者的熱門選擇。

Capital Gains Tax | 資本增值稅(中文字幕)

本次採訪中,信永中和澳大利亞高級經理陳泓洋(Michael)先生將大致介紹澳大利亞的資本增值稅(CGT)。他會講解房產或其他資產的CGT影響和稅務方面的考量,尤其是隨著居住身份的改變而出現不同的情況,以及澳大利亞居民可享受的CGT優惠。

Tax issues of principal place of residence | 主要居住地稅務問體(中文字幕)

本次採訪中,信永中和澳大利亞董事秦建樂將為觀眾們介紹主要居住地(PPR)的各種稅務問題。他會探討PPR資本利得稅(CGT)豁免,遷出PPR後申請豁免時的技術性問題,以及使用住房的部分區域作為辦公室。只要是涉及PPR稅務架構的應認真考慮的問題,我們都會討論,因為忽視這些問題可能導致意料之外的稅務後果。

Education in Australia | 澳洲教育(中文字幕)

大多數來澳洲的新移民都不得不多花工夫了解澳洲的教育體系。為人父母者,更無法迴避這個話題,在他們居家遷來澳大利亞之前,就要提前做好計劃。信永中和合夥人和教育行業專家安海麗(Hayley Underwood)女士會大致介紹澳洲的教育體系,講解什麼是NAPLAN,並提供一些有用的信息幫助家長做出明智決定。

Audit requirements in Australia | 澳洲審計要求(中文字幕)

公司何時需要提交經審計的財務報表?信永中和的合夥人張洋(Bessie)會討論澳洲企業的合規要求,並講解公司需要提交經審計賬目的情形以及企業何時可以申請豁免。

Introduction to Australian taxation | 澳洲稅務需知(中文字幕)

信永中和董事時煒淞 (Vincent Shi) 將為觀眾們介紹澳大利亞稅收制度及其運作方式。他將講解澳洲政治制度,其中包含三級政府,並解釋各級政府的各種稅收。我們還會探討國際稅收規則和雙重徵稅協定,並與中國大陸和其他亞洲國家的商業架構和稅率進行對比,突出稅務規劃的重要性。

Tax Residency | 澳洲稅務居民身份(中文字幕)

您是澳大利亞稅務居民嗎?答案可能非如您想像般簡單。本次採訪中,信永中和總監林錦盈(Vicki Lam)女士將回答一些常見的稅務問題,例如如何了解您的稅務居民身份,為什麼您要了解,以及在最新的預算案下,個人稅務居民規則的最新變化。

Reach out to our experts to start the conversation today! 如果您有任何移民相關的問題請聯絡我們。

What will the Federal Budget 2022/23 deliver to support you, your business and your industry?


A change in government for the first time in nine years, further interest rate increases expected, staffing shortages, supply chain issues and rising business costs – our fourth Federal Budget in two years will need to deliver for Australian businesses, and particularly small to medium-sized enterprises (SMEs).

Opportunities for growth, investment and trade are critical to everyone’s success, so SW Accountants & Advisors has partnered with Small Business Australia (SBA) to get to the heart of what business is looking for from the Budget, come Tuesday 25 October 2022.

As the Federal Budget approaches, we invite you to:

Take the survey! Receive a $250 Small Business Australia voucher

Take this short 2-3min survey from SW and SBA and tell us what you need from the budget in order to Look forward and Open doors. You’ll help us build a robust and current view of Australian small business.

PLUS you’ll receive a $250 SBA voucher to put towards business coaching, training opportunities or Business Advantage services. Survey closes Wednesday 19 October at 6pm.   

Budget Breakfast Webinar – 26 Oct | 9.30am AEDT

Join us as we digest the details of the 2022 Federal Budget at an informative webinar with an interactive Q&A session.

Our host, Matt Birrell will be joined by guests ANZ Senior Economist, Catherine Birch, and Bill Lang, Director at Small Business Australia as well as our SW industry experts to breakdown the key details of the FY23 Federal Budget.

Online Registration details

Date         Wednesday 26 October 2022

Time         9.30am – 11am (AEDT) 

Expert speakers


Catherine Birch
ANZ
Senior Economist


Bill Lang
Small Business Australia
Director


Matt Birrell
SW
Director, Tax


Follow us on social media to receive the latest updates on Federal Budget and other important industry news.

The State Revenue Office of Victoria (SRO) recently released a draft Ruling on the operation of the economic entitlement provisions contained in the Duties Act 2000 (Duties Act). Our experts look at whether the guidance provides clarity for the property industry and investors.

On 30 August 2022 the State Revenue Office of Victoria (SRO) released a draft Ruling on the operation of the economic entitlement provisions contained in the Duties Act 2000 (Vic).

Draft Ruling DA.065 Acquisition of economic entitlements in relation to land (service fees) formalises the guidance previously published on the SRO website in relation to arrangements potentially dutiable under these provisions.

Much of what was previously published is contained in the draft ruling, however the ruling does include some further examples. There is still some significant uncertainty as to the operation of the provisions and further clarity in some instances would be helpful prior the ruling being finalised. The SRO are accepting comments in relation to the draft ruling up until 28 September 2022.

Economic entitlement provisions

Broadly, the economic entitlement provisions will apply where there is an arrangement in relation to land (with an unencumbered value that exceeds $1,000,000) under which a person has an entitlement:

The provisions are broadly drafted and paragraph IV as it is currently worded has the potential to apply to any ‘fee’, ‘interest’ or other amount that is calculated by reference to the income, profits, rents or proceeds of sale derived from the development of the land.

The draft ruling highlights the intention of the provisions to impose duty on arrangements where a person, without acquiring an ownership interest in land, effectively obtains rights and benefits relating to the land that are economically equivalent to ownership interests. Labelling an amount as a ‘fee’ or ‘interest’, or something else, will not avoid the economic entitlement provisions if they otherwise apply

Outcome of draft ruling

The information previously published on the SRO website broadly details situations and examples which may commonly arise with respect to land dealings and provides guidance on whether the economic entitlement provisions would apply.

The draft Ruling builds on this guidance and considers two issues:

Fee for Service

The draft Ruling states that fees may be tied to the proceeds associated with land and/or its development but not amount to an economic entitlement. This is the case where third party service providers receive ‘genuine industry fees’ for service.

Examples include:

The Ruling follows on to provide that there is no need to lodge or pay duty where a person provides a ‘genuine’ service in relation to land and:

Limitations of the ruling

Whilst the examples provided have been included to avoid confusion, it is our view that more clarity is still required as the ruling does not articulate the principles which are being applied by the Commissioner in the examples.

In some examples the conclusion is that the fee is not an economic entitlement, however it is not clear whether this is because those examples actually fall outside the definition of an economic entitlement in the first place. For example, an architect who charges fees on a percentage of building costs does not actually acquire any entitlement to participate in the income, rent or profits derived from the land. Similarly, financiers who are entitled to interest calculated on the loan advanced do not have an entitlement to participate in the income, rent or profits derived from the land. In these circumstances, it is irrelevant whether the fees are “genuine” and within “industry parameters”.

In addition, the draft Ruling provides no guidance as to what are ‘genuine’ fees or whether a ‘fee/rate is within industry parameters’. Industry parameters cover a broad range and depend upon multiple factors.

Acquisition of a share or unit.

The draft Ruling states that:

The economic entitlement provisions contained in Chapter 2 of the Act can also apply to acquisitions of shares in companies and units in unit trust schemes that may be outside the scope of the landholder provisions in Chapter 3 of the Act. As a result, a liability may arise under Chapter 2 where no liability would arise under Chapter 3 because the interest acquired is below the relevant acquisition threshold. However, this would only occur where the acquisition of units, shares or other security interests entitle the holder to participate in the income, rents or profits, capital growth or proceeds of sale from particular land held by the entity.

The ruling provides an example where specific classes of units might be dutiable under the economic entitlement provisions, although not dutiable under the landholder provisions (as the interest acquired is below the relevant acquisition threshold). The ruling states that the economic entitlement provisions would only apply where the shareholder/unitholder is entitled to participate in the income, rents or profits, capital growth or proceeds of sale from particular land held by the entity. Where shareholders/unitholders are entitled to income/proceeds etc. that are general in nature and not specific to a particular land held by the entity, the economic entitlement provisions would not apply.

The example provided in the ruling is somewhat artificial as it involves the creation of a new class of units issued to a potential investor who wants to acquire one of the shopping centres (Property A) held in the Trust, but not through a conventional purchase. The new class of units entitles the investor to 100% of the new income, rents and profits associated with one of the properties and entitlement to the trust’s property upon wind up to the extent that the value of Property A bears to the total value of both properties.

It is our view that the anti-avoidance provisions contained in the landholder provisions should apply to such arrangements. The economic entitlement provisions should have no application to the issue of units and shares. Although the rights to dividends and capital of a particular class or units or share may be determined by reference to returns from a particular property or a particular pool of assets, the dividend or capital payments are not an entitlement to participate in the income, rent or profits derived from the land or capital growth (except in very unique circumstances).

How we can help

Whilst the ruling somewhat builds on the previous information published on the SRO website, it still does not provide the guidance needed by the property industry to understand what arrangements would be captured by the economic entitlement provisions. This unfortunately means that taxpayers seeking certainty will need to seek a private ruling from the SRO.

SW is currently involved in a number of submissions, so please reach out to the team if you have questions, comments or feedback.

Contributors

Robert Parker, Consulting Director, Tax

Carmelin De Francesco, Senior Manager, Tax