No Comments

New – Proposed Changes to Single Touch Payroll including Jail Terms

The Federal Government has recently proposed legislation which formalises new payroll reporting obligations and which imposes greater penalties on employers and other individuals who refuse to remit PAYG withholding tax and superannuation contributions.

By way of recap:

  • in 2016 legislation was passed introducing Single Touch Payroll (STP) reporting
  • STP reporting requires employers to report to the ATO payments such as salaries and wages, PAYG withholding and super information at the same time that wages are paid to employees
  • the legislation requires that all employers with 20 or more employees comply with STP reporting obligations from 1 July 2018
  • for initial purposes, the calculation of the number of employees is to be undertaken on 1 April 2018

However, recent legislation proposed by the Federal Government would require all businesses to comply with STP obligations from 1 July 2019.

The proposed legislation also:

  • grants the Australian Taxation Office (ATO) a suite of enforcement tools, including a strengthened regime of director penalty notices for unpaid superannuation and other tax-related liabilities
  • Continue reading…

No Comments

Case Update – Prior landlords potentially liable for past GST

MBI PROPERTIES PTY LTD V COMMISSIONER OF TAXATION [2013] FCAFC 112

Federal Court of Australia

The Australia Taxation Office (“ATO”) has appealed to the High Court the decision in the case of MBI Properties Pty Ltd v Commissioner of Taxation. If the High Court is to grant the appeal, GST liability could potentially transfer from the current landlord to the landlord at the time the lease was contracted. The Federal Court holds the view that the landlord who contracted the lease, should be liable for the GST, irrespective of the land being sold.

Currently, the ATO would pursue the current landlord for all GST owing on rent despite the GST being formed through rent paid before the purchase. The ATO has stated that it will continue to follow the current process until the outcome of the High Court case is finalised.

Should the Federal Court’s decision be upheld, landlords who have paid GST after purchasing a premises with an existing lease, may be entitled to a refund of the GST paid.
Continue reading…