Month: December 2018

Taxable Payments – New Compliance for Couriers and Cleaners

The Australian Government has reviewed areas of the ‘Black Economy’ – the market of people working outside of the tax regulation system – and found that payments made to certain workers, namely contractual couriers and cleaners, must now be included in a company’s Taxable Payments Annual Report (TPAR).

So if you’re running an Australian company with an ABN whose core or auxiliary service offering includes couriers and/or cleaning, then you will need to fulfil your tax payment reporting obligation to the ATO for these payments.

Contractors can be sole traders (individuals), companies or other entities invoicing your company for their services. You only need to report payments you make to contractors for courier and/or cleaning services.

Reporting Contractor Payments

Here are two examples:

Lodging your TPAR 2018-2019

A company using contract courier and/or cleaning services will be required to collect the relevant information from 1 July 2018 and to report it in their 2018-2019 TPAR by 28 August 2019. You need to know that if an invoice from a contractor includes labour and materials, the total amount of the invoice must be reported as the payment. However, an invoice from a contractor for ‘materials only’ will not be included in the report.

The reportable information from an invoice you receive includes but is not limited to:

  • ✔ ABN
  • ✔ Name of Contractor
  • ✔ Contractor’s Address
  • ✔ Gross Amount Paid to Contractor (within FY 2018-2019)
  • ✔ Total GST included in Gross Amount Paid to Contractor

You do not need to report:

  • ▪ Payments for ‘materials only’
  • ▪ Invoices unpaid as at FYE 30 June
  • ▪ PAYG withholding amounts

Seek Advice

Throughout this current financial year, you will need to be garnering data from your courier/cleaner contractor invoices. YML Group can guide you in the process and assist you with your TPAR lodgement.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your TPAR. Contact us on (02) 8383 4400 or by visiting the . Contact us on (02) 8383 4400 or by visiting the Contact Us page page on our website.

Government announces Changes to the Working Holiday Maker Programme

The Australian Government undertook a review of its Working Holiday Maker (WHM) programme and made changes to the criteria for overseas travellers wishing to work in Australia. These changes are now law and will hugely benefit Australian farmers and regional Australia’s workforce.

The WHM programme has two visa types: Visa Subclass 417 – known as Working Holiday Visa and Visa Subclass 462 known as Work and Holiday Visa. Which visa is issued to a travelling worker will depend on their country of residence.

Likewise, the Australian Government’s changes to the WHM programme are dependent upon the nationality of the travelling worker and, therefore, as an employer you will need to assess the visa rights of an individual working for you.

Generally, the changes for travelling workers include:

  • WHM Age Limit – May be aged 18 to 35 (no longer 18 to 30)
  • WHM Extension Period – May work with the same agricultural employer for up to 12 months (no longer up to 6 months)
  • WHM Third Year – From 1 July 2019, may opt for a third year visa after completing 6 months of regional work on their second year visa
  • WHM Work Period – May work altogether within Australia for up to 9 months a year (no longer up to 6 months for some countries)
  • Subclass 462 – May undertake regional plant and animal cultivation work in new regions within Australia for eligibility for a second visa
  • Subclass 462 – Annual caps lifted and an increase in available work places for some countries

Employers must now:

  • Validate Seasonal Labour Market Testing for 6 months (up from 3 months) prior to employing a travelling worker on an WHM visa
  • Repay their travelling seasonal workers for their out-of-pocket expenses up to $300 (no longer up to $500)

Overall, these changes are targeting genuine regional and rural workforce shortages by not only increasing the number of WHM visa holders but by giving WHM visa holders the option to extend their time in Australia. To achieve this goal, the Australian Government is allowing travelling workers to undertake longer periods of work in a broader scope of Australia’s agricultural sector.

Furthermore, the Australian Government is negotiating with yet more countries to enable an even greater number of participants in the WHM programme.

How can YML help?

Talk to our YML Migration Team today to see how YML Group can assist you with your WHM visa nominees. Contact us on (02) 8383 4400 or by visiting the Contact Us page page on our website.

NEWS! CGT Main Residence Exemption to End for Foreign Residents

A property defined as a main or primary place of residence (PPR) for an Australian resident is exempt from Capital Gains Tax (CGT) even when an Australian resident chooses to live offshore for up to six years.

Currently, during their time offshore, an Australian resident may sell their main place of residence in Australia and benefit from the CGT main residence exemption, resulting in significant saving on CGT at the time of sale.

CGT Changes – What are they?

Recent changes by the Australian Government will see the end of the main residence exemption from CGT for all non-resident Australians, regardless of how long they have been living and working out of the country. The termination of this particular CGT exemption is 30 June 2019 for properties held prior to 9 May 2019.

Important Dates for Foreign Residents to Know:

  • Exemption may be claimed on PPRs held prior to 7:30pm (AEST) on 9 May 2017 and disposed of up to 30 June 2019
  • Exemption NO LONGER applies to PPRs acquired after 7:30pm (AEST) on 9 May 2017

If you are an Australian resident living overseas, in possession of a main Australian residence and you sell your home after 30 June 2019, then this legislative change will affect you.

I am a foreign Australian resident with an Australian PPR – What now?

You will need to consider your intention to return to Australia to live. You will need to assess your personal situation about living in your main residence or selling it, and the possible tax consequences of both scenarios.

Your current and future tax residency status can be determined for the purpose of selling your Australian property. You might solicit professional guidance on the tax implications of living and working offshore whilst still holding your main Australian residence.

Upon returning to Australia, residents may be eligible to claim a partial – if qualified – CGT exemption upon selling their main residential property.

If you are a foreign resident and you are required to lodge a tax return for Australian-assessable income, then the ATO has the power to collect CGT via a tax return, depending on individual circumstances.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your PPR and CGT. Contact us on (02) 8383 4400 or by visiting the Contact Us page page on our website.