Bitcoin transactions in Australia will be subject to tax. The country's tax authorities have decided to subject transactions involving cryptocurrency to goods and services tax.

    Australia has ruled that Bitcoin would not be treated as money, according to the Guardian. The GST will only be applicable to businesses involved in Bitcoin exchanges where customers pay real money for digital currency. Tax authorities said that when Bitcoin is purchased from a business, a GST is applied for the supply of the cryptocurrency.

    Before the new ruling, Australia does not usually apply GST to financial transactions. However, the Australian Tax Office said the transfer of one Bitcoin to another is considered "supply" for the purposes of GST. It also explained that it does not consider Bitcoin as money; therefore, the exclusion for the supply of money does not apply.

    The implications of the Australian tax may make it difficult for businesses to run a Bitcoin exchange in the country. A Bitcoin exchange will be more expensive as the tax will be imposed on the total amount of digital currency supplied instead of the cut the exchange will take above market value.

    Unlike businesses running Bitcoin exchanges, those with trading platforms will pay less tax under the new taxation rules. The difference in tax amounts lie in whether the company is buying or selling Bitcoin or is simply facilitating transactions between third parties like a broker to stock exchange. If the company only brings buyers and sellers together, Australia will only collect GST due on the percentage commission charged by the exchange and not on the total amount purchased.

    The new ATO ruling has also complicated the transactions when customers spend their Bitcoins. Sellers that accept the cryptocurrency as payment will have to treat it as a "taxable supply" rather than regular money. According to the ATO, the new rules on Bitcoin are based on its decision to not treat it as a universal means of trade and form of payment under any laws of Australia or any other country.

    Bitcoin has been repeatedly criticised for its fluctuating value despite its acceptance in some online retailers especially in the U.S., previous reports said. The cryptocurrency was recently questioned in the submission made by MasterCard Australia to lawmakers that argued for the country to impose standard regulations on Bitcoin.

    This news story is reprinted from au.ibtimes.com

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    BAS is Business Activity Statement. To report all taxation obligations to the Australian Taxation Office every business needs to submit a form called Business Activity Statement. It includes pay as you go withholding (PAYGW), pay as you go installments (PAYGI), fringe benefits tax (FBT), wine equalization tax (WET) and luxury car tax (LCT). BAS gives the complete business financial record analysis for a specific period of time.

    Lost Cost BAS Preparation

    To be on the most up-to-date details of business and to track the performance of business and growth BAS preparation is needed. BAS statement is compiled quarterly over the year, and there are some critical pieces of data and information that must be filled out in a comprehensive manner.

    Lack of experience and attention to detail and results in the tax office rejecting or requesting resubmission of the statement. There are a variety of different BAS forms which an organization can complete. The form which a business receives depends on the taxation liabilities an organization has. It is important to file BAS on time to avoid penalties. If the Business revenue exceeds more than $20bn, BAS has to be filed monthly.

    The ATO receives 80% of its total BAS statements from non professionals and while there are those with the time, organizational skills and understanding of what they are doing, unfortunately most do not do.

    Points to remember while preparing BAS

    1. Refer to invoice: Every business should hold a valid tax invoice to claim back any GST that is entitled to purchase. The tax invoice must also state the GST amount included in the price. Refer to these tax invoices when entering business transactions into your accounting software so you can attach the correct GST code to each entry. Some transactions may be GST free.
    2. Reconcile All Accounts: To ensure all income and expense transactions Bank account record should be reconciled.
    3. Record Capital Acquisition: In separate section of BAS the purchased article should be noted.
    4. BAS lodgment Deadline: Penalties are charged by Tax Office if one is not prepared and lodge the BAS on time.

    Benefits of BAS Lodging on time

    to track business performance
    To avoid penalty
    to keep lodging history
    this will give people time to organize payment arrangement
    save in time to focus more on business
    The ATO’s SMSF statistical report throws light on super funds scenario in Australia. The report has summarised all the data and various factors that influence the investment pattern, number of members, level of smsf audit and other specific things. The report says that out of total superfunds during year 2010-2011:

    1. Superfunds have over 913000 members.
    2. The total value of assets in smsf sector is $440 Billion.
    3. Every year, 26000 new smsf are reported to be established since 2008.
    4. In recent years, the ratio of member to employee contributions has reached 
    2:1.
    5. Majority of superfund’s hold their assets in cash and term deposits and Australian listed shares.
    6. Smaller super funds prefer cash and term deposits.
    7. The average balance for a member is $506,000.
    8. The operating expense ratios have declined from 0.65% to 0.54%.
    9. Over 64% of smsf are in accumulation mode but the trend is shifting towards superfunds that can arrange payment pensions sooner.

    Smsf advice is very important and all the care must be taken to make the most out of your superfund. To know more about smsf Brisbane, please visit www.bbwgroup.com.au
    ANZ expects the economy to grow more slowly in 2015 but says the longer-term outlook for Australia remains strong.

    The bank's chairman, David Gonski, said that despite low interest rates and a falling Australian dollar, the economy would continue to be weighed down by weakness in the mining sector.

    "In 2015, while we expect interest rates to remain low and the decline in the Australian dollar will be good for many sectors of the economy, we believe the economy will grow somewhat more slowly than in the past year," he told shareholders at the bank's annual general meeting.

    Mr Gonski said while the resources sector would continue to play an important role, services such as education, health, information technology and engineering would need to become a more important part of Australia's economic future.

    He also said ANZ had been actively managing its capital position in anticipation of the recent Financial System Inquiry call for banks to hold more capital.

    "At the invitation of the federal government, we'll be making submissions in response to the inquiry's report in the next few months," he said.

    "Whatever happens after discussions next year, I want you to know that ANZ is already strong and has a range options open to ensure it is unquestionably strong."

    This news story is reprinted from au.news.yahoo.com

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    The tax industry has welcomed a clarification from the federal government it won't begin taxing super holders aged over 60, but says it needs more clarification over what exactly Labor has planned in order to scrape more savings for the May budget.

    Prime Minister Julia Gillard confirmed with Parliament yesterday the government "will never remove tax-free superannuation payments for the over-60s", including super lump sums and pensions. 

    The statement was a rare clarification of what Gillard actually plans to do as part of a campaign to rein in tax concessions. Having thrown away its promise of a surplus, Labor is attempting to shrink the deficit as much as possible. 

    CPA Australia policy head Paul Drum told SmartCompany this morning while the clarification is welcome, more information is needed about the government's plans – early reports suggest it will focus on curbing tax concessions for the wealthy. 

    "We actually need some clarity here," he says. "We need bipartisan support on having a review of the retirement savings system, and what should be done there." 

    "CPA's view is that we want both major parties to come clean and clarify what their views are in respect of having a grand vision for retirement savings policy in Australia." 

    Reports in both the The Australian and Fairfax suggest the government is considering increasing the tax rate on superannuation for the wealthy. One plan under consideration could see the wealthiest 1% charged a higher rate when super is being accumulated, instead of a tax on withdrawing funds. The change would affect as many as 100,000 people, the report claims. 

    The consideration comes despite a number of changes to the super system over the past few years, including lifting tax on contributions for those earning over $300,000.

    Self Managed Superannuation fund is usually taxed through contributions, money earned through the fund itself, and withdrawals during retirement. If the government is ruling out tax withdrawals, it means it will focus on money earned in the fund or contributions. 

    But Drum says the notion of clawing out savings from the superannuation system is faulty and isn't sustainable in the long run. 

    "One the one hand, you have a system that is meandering along and is not delivering on its promise, nor is it reducing the future burden on the public purse." 

    "We're opposed to governments coming in to home in on the super honey pot, as it were, and treating it as just another source of revenue. But notwithstanding that, it does need an overhaul." 

    Drum says CPA Australia wants the government to announce a full Productivity Commission review of the super system and then work from there. 

    "This would consider whether big changes are needed, such as whether we should have progressive rates on contributions." 

    "Australian confidence in superannuation is at an all-time low, and it's partly because the rules keep changing." 

    The super system has been in the public eye over the past few years due to both the changing laws and also a greater public awareness of massive tax bills which can occur if something goes wrong. Superannuation Minister Bill Shorten was even caught out by the rules and was stung with a tax bill for contributing too much money in the one financial year. 

    Drum urged the government to clarify its plans. 

    "But we would discourage making any announcements about the super system without having a review." 

    This news story is reprinted from www.smartcompany.com.au 

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    One in every three loan borrowers fixed their home loans in the month of March via leading mortgage broker AFG. The broker has recently fixed their rate at 5% to increase number of fixed home loan borrowers. According to The AFG Mortgage Index Published on 2nd April, 2013, 29.6% home loans were fixed in March as compared to 24.1 % and 16.3% in February and January respectively. The rates achieved in March are however highest rates achieved till today by the AFG.

     Home loan borrowers have shown good response and are desperate to lock loans at fixed rates offered by the mortgage broker. Many borrowers told that the reason for fixing loans with the broker were simply the ‘historic low rates’ of interest offered by them. This move is a part of sales team of the AFG mortgage brokers. Main borrowers are first home buyers in West Australia (WA) and investors in New South Wales (NSW). As per the mortgage broker, there is a very low percentage of loan borrowers who are first home buyers. The data for different states in Australia is given below:

     

    For more information on mortgage broking and cost effective loan processing with leading mortgage brokers and lenders in Australia, you can talk to our representative or visit our website: www.bbwgroup.com.au 

    The federal government has appointed former KPMG International chief Michael Andrew as new chairman of the Board of Taxation, among three other appointees, to help improve tax laws and regulations.

    The Board of Taxation comprises 10 members and is a non-statutory advisory body designed to contribute to improving the design of taxation law and its operation.

    The appointments come amid increasing government talk of crack-down on international profit shifting and tax minimisation, with Treasurer Joe Hockey confirming on Tuesday the government was looking to impose a "Google tax." Multinationals were "robbing Australians" by avoiding tax, Hockey said.

    Along with Andrew, Peggy Lau Flux, Mark Pizzacalla and Craig Yaxley were appointed members of the Board.

    Andrew served as chairman and chief executive of KPMG International and chairman of KPMG Australia, and is currently the co-chair of the Australian B20 working group on anti-corruption and transparency.

    Mrs Lau Flux has worked in corporate banking for Citibank and Standard Chartered Bank in Hong Kong and has served on the board for the Council for International Trade and the Australia China Council, among others.

    Mr Pizzacalla, the former chair of the Tax Institute’s national SME sub-committee, is currently a Partner in BDO’s tax practice and has PhD on the taxation of SMEs in Australia.

    Mr Yaxley is KPMG's Western Australia lead tax partner and the chair of the AMEC Tax Committee. 

    All appointments are for three years.

    This news story is reprinted from www.theaustralian.com.au

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    The taxation liability under employee share tax scheme is discouraging many small firms in Australia to use this option. Generally companies offer a share of their growing equity to the talented workforce to make them stay in the current organisation. The rigid tax treatment of such schemes is resulting in more tax liability on the part of the employee turned shareholders. Many entrepreneurs believe that share option scheme is a form of key currency that results in holding talented pool within organisation. It also acts as a resource for the company owners who don’t have mush capital resources to employ highly paid professionals. 

    Many taxation experts believe that the employees holding shares become liable to high taxes based on the assets value, even if the company has not started earning any revenue till date. “Updating tax treatment rule is the demand of the hour” as quoted by Malcolm Thornton, investment director at venture capital fund Starfish Ventures. Thornton also believes that the employee share tax scheme needs to consider various types of companies that exist in Australia, so that a large number of organisations could benefit from this share option scheme. 

    When experts were contacted to give their comment on this issue, their common opinion was that “an employee is less concerned about the formalities and taxation liabilities that come with holding a share. However, a company which is offering shares needs to understand and consider every aspect of the legal process while offering its shares to employees”.
     
    Draft GST Ruling GSTR 2014/D5

    The Commissioner has issued a draft ruling to explain the GST treatment of particular transactions arising in the context of development lease arrangements entered into between government agencies and private developers.

    These arrangements typically have following features :

    the private developer (developer) undertaking a development on land owned by a government agency in accordance with the terms of a written agreement between the developer and

    the government agency supplying the land by way of freehold or grant of a long-term lease to the developer subject to the developer undertaking the development in accordance with the terms of the written agreement. 

    That is, the developer becomes entitled to transfer of the freehold or grant of a long-term lease when the development is completed. 

    In particular, the draft ruling considers:

    the relevant principles for identifying and characterising the various supplies that are made for consideration under development lease arrangement, including: – 

    whether the grant of a short-term lease or licence (development lease) by the government agency to allow the developer to undertake the development on the land is a supply for consideration and 

    – whether, in completing the works on land owned by the government agency, the developer makes a supply of development services to the government agency for consideration, and

    – whether the sale of the freehold or grant of the long-term lease of the land by the government agency is supply for consideration, and whether any consideration the developer provides for supply of the land includes undertaking of the development works on land owned by the government agency.

    the extent to which the consideration for particular supplies made under a development lease arrangement includes consideration that is not expressed as an amount of money, ie non-monetary consideration how the value of any non-monetary consideration provided for supplies made in the context of a development lease arrangement may be determined, and the attribution, under Div 29 of the GST Act, of the GST liabilities and input tax credit entitlements that may arise under development lease arrangements.

    This news story is reprinted from CCH Tax Week

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    FXStreet (Guatemala) - Jacqui Douglas, Senior Global Strategist, Rates and FX Research at TD Securities reminded that RBA Governor Glenn Stevens, made a keynote speech on ’The Economic Outlook’ in HK.

    “He voiced an upbeat view on the global and domestic economies, comparing favourably with the dire global and financial market conditions prevailing two years ago when he last addressed the audience”.

    “Overall, the speech read like a set of RBA Board meeting minutes, with a discussion of the global economy, including diverging global central bank monetary policy paths, followed by an upbeat assessment of domestic conditions”.

    “The concluding remarks noted that the best course of action for monetary policy for Australia is that “a period of stability in interest rates could be expected”.

    “Deputy Governor Philip Lowe made Opening Remarks on ‘Some Implications of the Internationalisation of the Renminbi’ in Sydney. Dep Gov Lowe said the process of China moving towards a flexible exchange rate regime, brings much promise, as it did when Australia made the same move. While there is no precedence of a country as large as China taking such measures, a change in Chinese Capital flows will have a definite impact on markets”.

    “Lastly the RBA released its Half year financial market report , the RBA Financial Stability Review, reinforcing the Australian Banking and Finance Industry is well placed to deal with future crises. A new theme that did emerge was the need for institutions to be more vigilant on maintaining lending standards. We read this as a warning from the RBA to borrowers and lenders not to over commit should interest rates move higher and house prices stop rising”.

    This news story is reprinted from www.fxstreet.com

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      The ATO has released a decision impact statement on the Full Federal Court decision in ATS Pacific Pty Ltd v FC of T 2014 ATC ¶20-449.

      In that case, the Full Federal Court held that the supplies made by an Australian tour operator to non-resident travel agents (NR travel agents) were not GST-free. In so doing, the court dismissed the taxpayer’s appeal and allowed the Commissioner’s cross-appeal from the first instance decision of Bennett J reported at 2013 ATC ¶20-383.

      ATO view of decision

      Although the decision relates to specific facts, the Commissioner considers that the decision applies to all inbound tour operators (ITOs) which: ● transact as principal (and not as an agent of the NR travel agent), and are engaged by NR travel agents to enter into contracts with Australian providers for the provision of components of tour packages to NR tourists.

      Under the court’s reasoning, the supplies made by these ITOs to their NR travel agent clients are properly characterised as supplies of promises to ensure components of tour packages are provided. The supplies are wholly taxable.

      This news story is reprinted from CCH Tax week

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      Business Activity Statement (BAS) – BBW Business Services

      What is Business Activity Statement?

      All businesses need to submit a taxation obligation form to the Australia Government Taxation Office. This is done using a form called Business Activity Statement (BAS). This includes the following taxations
      a)      Pay As You Go Withholding (PAYGW)
      b)      Pay As You Go Instalments (PAYGI)
      c)       Fringe Benefits Tax (FBT)
      d)      Wine Equalisation Tax (WET)
      e)      Luxury Car Tax (LCT)
      Individuals who need to pay quarterly PAYG instalments also use Activity Statements.
      Preparing Business Activity Statement
      Below is an example of a paper quarterly activity statement showing the most common reporting requirements. Whether you use paper or the Business Portal - the activity statement will contain all of your reporting requirements.
      Front of the activity Statement


          Back of the activity statement

      Points to be remembered while filling the Business Activity Statement.

      a)      Use a black pen and print clearly
      b)      complete the labels where you have something to report (leave other labels blank)
      c)       round down to whole-dollar amounts (don’t include cents)
      d)      don’t report negative figures or use symbols such as +, -, /, $
      e)      input ‘0’ (do not use NIL) if reporting a zero amount
      f)       transfer the amount to the summary section at the end of each solution
      g)      calculate the amount you have to pay or expect to receive as a refund
      h)      make your payment by the due date
      i)        return your signed paper or electronic form, even if nothing to report or payment has already been made (unless otherwise directed on the form)

      Due date for filling and payment of Business Activity Statement
      Lodging and paying due date is pre printed at the top right corner of the Business Activity Statement


      Quarter
      Due date
      1 - July, August and September
      28 October
      2 - October, November and December
      28 February
      3 - January, February and March
      28 April
      4 - April, May and June
      28 July


      Depending your business if you are suppose to report and pay monthly, the due date is normally 21st of the following month. If the due date falls on a weekend or public holiday you can lodge your form and make payment due on the next business day.

      Steps to lodge the business activity statement (BAS)

      a)     online using the Business Portal, Standard Business Reporting (SBR) or Electronic Commerce Interface (ECI)
      b)    by phone, if you do not have anything to report to any label
      c)     by mail
      d)    by a registered tax agent or BAS agent or BBW Business Services

      You may get extra time to lodge and pay your quarterly activity statements if filed electronically via the Business Portal, Standard Business Reporting or a registered tax agent or BAS agent.

      Ways to make a payment

      There are a number of ways to make a payment, both in Australia and overseas:

      a)     BPAY
      b)    Credit card (conditions apply)
      c)     Direct credit
      d)    Direct debit
      e)     Mail
      f)     Australia Post Outlets
      g)    From overseas – pay by BPAY, Credit Card, Direct Credit or Mail.

      For more information visit connect with us at http://www.bbw-services.com or call us at +61 7 3368 9950

      Information source: https://www.ato.gov.au/Business/Activity-statements/