Question:
$1,000 GST-free import exemption to stay
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
The Productivity Commission released a draft report early in August about the current $1,000 low value threshold where GST and duty is not imposed on imported goods. Australian retailers have complained that the threshold makes for unfair competition as they have to charge GST and are suffering because consumers are no longer spending up big. The report indicates that collection cost would be three times the tax collected if the low value threshold was removed.
The draft report indicates that 55 million international parcels valued under the $1,000 threshold arrive in Australia and that if the threshold was removed $578 million dollars of GST revenue would be collected. If the threshold were reduced from $1,000 to $100, $472 million dollars of revenue would be collected.
The cost of collection for the complete abolition of the GST threshold would amount to $2 billion for the business, consumers and Government and $1 billion if the threshold was dropped to $100.
Assistant Treasurer Bill Shorten said there was no way you can sell that to the Australian people even though we do support, as a general principal, the general idea of tax neutrality, that the tax should be the same on all items.
Recommendations in the draft report included:
+ The threshold should stay until it is cost-effective to collect the tax;
+ The Government should investigate new approaches to processing low value imported parcels and reassess reducing the threshold after implementing more cost-effect processing.
There will be public hearings during September and the final report goes to the Government in November.
WTB 1280
