This week we saw the release of the WA budget, and while there are points that will impact some listeners, however we typically do not discuss the state taxes as they have too fine an impact. If you are a current payroll tax employer in WA you should note these changes and how they may affect you.

The ATO are currently highlighting the tax consequences of activities in the sharing economy, better known as eBay, Uber, Airbnb, FaceBook, Amazon and Airtasker. The sharing economy can be defined very broadly as new kinds of economic and social interactions facilitated by the internet. The ATO provide guidelines on records keeping, deductions allowed, and registrations required. You can find all necessary details here: https://www.ato.gov.au/General/The-sharing-economy-and-tax/Working-in-the-sharing-economy/

The government has introduced the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 and the Foreign Acquisitions and Takeovers Fees Imposition Amendment (Vacancy Fees) Bill 2017 into parliament to implement tax measures on housing affordability that were announced in the 2017/18 Budget on 9 May 2017.

These bills have impacts on matters previously discussed, but specifically Schedule 1 to Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 will deny tax deductions for travel expenditure incurred in gaining or producing assessable income from residential properties and it will ensure that the expenditure is not recognised in the cost base of the property for capital gains tax (CGT) purposes. The amendments will apply to losses or outgoings incurred on or after 1 July 2017. 


Schedule 2 to the Bill proposes to deny income tax deductions for depreciation of previously used depreciating assets used in gaining or producing assessable income from the use of residential premises for residential accommodation. 


Schedule 2 of the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 1) Bill 2017
will allow older Australians to contribute some of the proceeds of the sale of their family home to superannuation. The government believes this will encourage people who may have been put off by existing superannuation restrictions and caps to move house and free up homes for growing families.

From 1 July 2017, people aged over 65 will be able to make an additional non-concessional contribution of up to $300,000 into superannuation when they sell their home which they have held for at least 10 years. Both members of a couple can take advantage of this measure, meaning up to $600,000 of contributions may be made by a couple from the proceeds of selling their home.

The amendments apply to proceeds from contracts for the sale of a main residence entered into (exchanged) on or after 1 July 2018.