- ATO Findings on GST Compliance: The Australian Taxation Office (ATO) published findings indicating that significant income tax and GST liabilities were raised from audits of the Top 500 taxpayers, emphasizing the importance of robust tax governance and compliance.
- GST Input Tax Credits: Amendments allow businesses with excess VAT credits due to changes in GST rates to apply for relief within six months, addressing issues where businesses could no longer offset input VAT against output VAT payable.
- Input Tax Apportionment Changes: The repeal of the input tax apportionment threshold means that businesses with less than 10% taxable supplies can now claim partial input tax, while those with over 90% taxable supplies will not receive full input tax deductions.
- New VAT Exemptions and Changes: The Act introduces new exemptions for specific goods and expands existing exemptions, such as those for essential hygiene products, which may impact production costs due to non-deductible input VAT.
- Focus on Tax Governance: The ATO emphasizes the need for effective tax governance frameworks among businesses, recommending clear documentation and proactive engagement with the ATO to manage tax risks and improve compliance outcomes, particularly for GST reporting.
Source Deloitte
