Planning on Developing Property?

Did you know that if you build and sell new residential premises you pay GST on the sale? And you can generally claim GST credits for your construction costs and purchases related to the sale.

We are identifying and contacting developers early on in the planning process to help you understand your GST entitlements and responsibilities.

When a new development starts we sometimes verify significant refund claims. We may do this if you:

  • lodge a BAS without reporting property transactions, or
  • have an outstanding BAS.

If you haven’t lodged your BAS we’ll remind you so you don’t get behind. When we do this we can assist you with any questions you may have.

If you need advice from the ATO about the tax treatment of your development you can lodge a request for a private binding ruling.

Property development, building and renovating

If you’re renovating one or more properties you need to work out if you are a personal property investor, engaged in a profit-making activity of property renovations, or carrying on a business of renovating properties.

If you build new residential premises for sale, you’re liable for GST on the sale, and you can generally claim GST credits for your construction costs and purchases related to the sale.

Register of Private Binding Rulings

We publish edited versions of written binding advice in the Register of Private Binding Rulings.

This enhances the integrity and transparency of the private ruling system and confirms for the recipient that it is official ATO advice. The advice is edited to protect the secrecy and privacy of the applicant.

Status of versions published in the Register

The edited versions of written binding advice published in the Register can’t be relied on by taxpayers or their advisers in any way. They can’t be relied upon as precedent or used for determining how the ATO will apply the law. The records in this Register are not binding and provide no protection.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

When you Can Claim a GST Credit

You must be registered for GST to claim GST credits.

You can maintain a credit for any GST included in the price you pay for things that you use in your business. This is called a GST credit (or input-tax credit, a credit for the tax included in the price of your business inputs).

You claim GST credits in your activity statement.

You can claim GST credits if the following four conditions apply:

  • you aim to use your purchase solely or partly in carrying on your business and the purchase does not communicate to making input-taxed supplies
  • the purchase price included GST
  • you provide, or are liable to provide, payment for the item you purchased
  • You have a tax invoice from your supplier (for purchases more than $82.50).

You cannot claim a GST credit:

  • without a valid tax invoice
  • for purchases that do not have GST in the price
  • for wages you pay to staff (there is no GST on wages)
  • For motor vehicles priced above a certain limit.

Goods and services that don’t have GST in their price include:

  • GST-free items (such as basic foods)
  • Input-taxed items (such as bank fees and loan interest)
  • Purchases from a business that is not registered for GST (and therefore cannot charge GST).

When you can’t claim GST credit

You also cannot maintain GST credits for the following, even if GST is included in the price:

  • purchases you intend to use for private or domestic purposes
  • purchases you intend to use to make input-taxed supplies, such as those associated with providing residential accommodation
  • some purchases that you can’t claim as an income tax deduction, such as entertainment expenses
  • Land purchases under the margin scheme.

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

Business Activity Statement

The business activity statement (BAS) is a form submitted to the Australian Taxation Office by all businesses to report their tax obligations.

These include pay as you go instalments (PAYG)fringe benefits tax (FBT)wine equalization tax (WET) and luxury car tax (LCT). PAYGW is sometimes known as “Income Tax Withholding (ITW),” PAYGI is sometimes known as “Income Tax Instalments (ITI)“.

There is a mixture of different BAS forms which an organization can complete. The form which a business receives depends on what taxation liabilities an organization has (these are referred to as roles). Statements are usually issued quarterly; some roles can be reported at different frequencies depending on business structure and income. Some roles such as GST can be reported annually, subject to eligibility criteria being met.

Although activity statements are frequently submitted quarterly, some entities are required to report obligations on a more frequent basis. Some entities may be required to report PAYG Withholding liabilities or GST monthly.

Every activity statement carries a unique document identification number (DIN). Activity statements can be submitted to the ATO on paper (mail), by phone, electronically (via a Tax Agent’s electronic lodgement system or “ELS”), or through the ATO business portal.

Activity statements are processed by the Australian Taxation Office through its operations sub-plan. Any errors which occur with activity statements are usually handled by a department known as activity statement product (exceptions {ASP(E)}). ASP(E) operates under the operations sub-plan, client account services (CAS) business service line (BSL). Errors may occur when a business client information figures incorrectly, where a client includes cent figures (only dollar figures are allowable), where an arithmetic error occurs, when a statement is submitted when no roles are active for the client, or when the handwriting on a paper statement is illegible.

The business activity statement (BAS) is a tax reporting requirement for businesses issued by us on either a monthly or quarterly basis. It’s used for reporting and paying goods and services tax (GST), pay as you go (PAYG) instalments, PAYG withholding tax and other tax obligations.

When you record for an Australian business number (ABN) and GST, ATO will automatically send you a BAS when it is time to lodge.

All businesses registered for GST are required to lodge a BAS by the due date.

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

Wine Equalization Tax

If you make wine, import wine into Australia or sell it by wholesale, you’ll generally have to account for wine equalization tax (WET).

WET is a tax of 29% of the wholesale value of wine. It is only payable if you are registered or required to be registered for GST.

It’s designed to be paid on the last wholesale sale of wine, which is frequently between the wholesaler and retailer. But it might apply in other situation – such as cellar door sales or tastings – where there hasn’t been a wholesale sale. WET is also payable on imports of wine (whether or not you are registered for GST).

If you’re a wholesaler or producer of wine and you’re registered (or required to be registered) for GST, you need to register for WET.

Your business activity statement (BAS) will then have labels for you to report WET payable and any WET credits for each tax period.

If you’re a wine retailer (such as a cafe or restaurant) you don’t need to register for WET except you make wholesale sales or bottle your own wine.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au