Reminder to restructure your limited recourse borrowing arrangements by 31 January 2017
Individuals who have used their self-managed superannuation funds (SMSFs) to borrow from related parties to fund the acquisition of properties – usually through using non-commercial limited recourse borrowing arrangements (LRBAs) – have until 31 January 2017 to ensure those borrowing arrangements are on arm’s length terms (e.g. there must be market interest rates, commercial lending periods and principal and interest repayment arrangements).
We can assist you in restructuring your borrowing arrangements to minimise the risk that income generated from the LRBA will be taxed at 47% as non-arm’s length income (NALI).
Businesses employing backpackers will need to register before 31 January 2017
As mentioned in a previous Top Tax Tips, working holiday visa holders / backpackers will be taxed at a flat rate of 15% on earnings up to $37,000 from 1 January 2017 and employers of such workers will be required to register with the ATO by 31 January 2017.
A business that intends to employ backpackers / working holiday visa holders in 2017 should contact us. We can ensure the business registers as an employer of working holiday visa holders by 31 January 2017 and thereby ensure that the workers will not be subject to a 32.5% withholding rate (as opposed to only 15%) for earnings up to $37,000 and ensure penalties for failing to register are avoided.
Simpler GST reporting for small businesses from 19 January 2017
From 19 January 2017, newly registered small businesses (i.e. i.e. those with a turnover of less than $10 million) have the option to report less GST information on their business activity statement (BAS) to reduce time and costs of GST record-keeping and reporting.
Basically this means such small businesses will only have to inform the ATO about GST on purchases and total sales (instead of filling in a number of other labels that may not be so relevant to the issue at hand).
Public and private Ancillary fund annual information return due by 28 February 2017
Please contact us if you operate a public or private ancillary fund (i.e. broadly a fund established to raise funds for deductible gift recipients (DGRS) to perform charitable activities).
We can ensure that the annual information return is lodged by 28 February 2017 and in the correct manner (i.e. generally such an ancillary fund registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC) will have less onerous reporting requirements than such funds that are not charities).
How can Nexia Edwards Marshall NT help you?
For any questions or to discuss any of the above in relation to your personal situation, please contact Grantley Stevens or your Nexia Edwards Marshall NT Advisor.
