Cut out at ‘termite’ taxes ......... The IPA has urged the government to implement holistic tax reform to eradicate “nuisance taxes”. Nuisance taxes and termites have something in common – termites eat away at the family home while nuisance taxes erode the revenue base and economic stability. These taxes are inefficient, distortive and inequitable and are levied by state governments. Payroll tax is an example of a tax that is counterproductive to economic growth. It acts as a disincentive to employment and does not motivate small entities to grow. Stamp duty is another example of a state-based tax which should be either abolished or reduced to a level that minimises the drag on the economy. THEY SHOULD BR REMOVED A shift towards greater reliance on consumption taxes (GST) would encourage savings and investments, and would provide a more suitable source of revenue.

 

 

As a director of a company, you may be at personal risk for decisions made in the best interests of the company unless your company indemnifies you. A director’s indemnity involves a company undertaking to protect its directors against liabilities that they may incur in the course of performing their company duties. A director’s indemnity may be required (as in some instances by ASIC) or a company can choose to indemnify their directors.

Can accountants save the planet? Accountants are unlikely revolutionaries, but according to Jane Gleeson-White, they are leading the charge in reforming the global economy for the good of us all. An international movement has begun within the finance world, and many innovative global companies are starting to look at how nature and society can be included in their bottom line.

As of 1 Oct 2016, some transactions between Aust and overseas businesses are no longer subject to Australian GST.

• GST-registered importers no longer need to identify the exact amount paid or payable for international transport, insurance and other costs to calculate the value of the taxable importation for GST purposes.

• More supplies of services by Australian businesses to non-resident businesses will now be GST-free.

• Overseas businesses supplying or acquiring goods from an Aust businesses may no longer need to be registered for GST and may cancel their ABN.

Self-managed super funds are rushing to sell property before tax changes that cleared parliament and start on July 1. SMSFs have invested in property in recent years, taking advantage of favourable tax rules; many business owners lease their premises from their self-managed funds. As values have surged in the commercial property boom, many SMSFs will have balances above the $1.6 million. Balances above that amount will be hit with a 15% tax on earnings – rental income in the case of property – and a 10 to 15% capital gains tax when it comes time to sell.

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