The 2018 financial year will be the first year to be impacted by changes introduced to limit deductions that can be claimed by individual residential property investors.
Firstly, travel expenditure (car expenses, airfares and accommodation) incurred inspecting and maintaining a residential rental property are no longer deductible and are not added to the cost base of the property for capital gains tax purposes.
Secondly, individual investors can only claim a deduction on newly acquired depreciable assets installed for the use in residential property. Unfortunately, this means that no claim is available for ‘previously owned’ depreciating assets connected with the purchase of a second hand property.
It is worth noting the above changes do not apply to companies and taxpayers carrying on a business.
Single Touch Payroll Reporting (STPR)
The introduction of the STPR will streamline the way employers report employee information to the ATO and takes effect as follows.
– 1 July 2018 for employers with 20 or more employees
– 1 July 2019 for employers with less than 20 employees
The main changes under STPR are:
– Real time reporting of salary and PAYG information
– Employers require SBR-enabled software
– New employees can complete TFN and superannuation forms online
– STPR reports replace the current activity statements for PAYGW
– PAYGW information will be prefilled on the BAS/IAS
If you have not already done so, we recommend you contact your accounting software provider to ensure you will be STPR compliant.