Tax cuts and simpler tax returns were the keys changes highlighted in Peter Costello’s 12th and most recent Federal budget with important changes announced which will affect bodies corporate with an annual turnover of less than $75,000.
From 1 July 2007, bodies corporate with a turnover of less than $75,000 per annum will no longer be required to register for GST (previously the threshold was for GST registration was $50,000). In addition, should a scheme which falls below the threshold choose to register, they will have the option of remitting GST once a year.
For bodies corporate with an annual turnover of less than $2 million, the option to use a simplified tax method to calculate their GST requirements will be available.
In summary, the increase in the GST registration threshold for bodies corporate with a GST turnover (income from levies and other sources, excluding bank interest) of less than $75,000 will have the option to:-
- cancel their GST registration
- choose to report and pay GST annually
- continue with their current GST arrangements.
Finally, purchases by businesses for $ 82.50 or less (including GST) will no longer require an approved tax invoice in order to claim a input tax credit, an increase from the current value of $55.00 (including GST). To bodies corporate, this means that the threshold for withholding tax from a supplier that does not supply an ABN when submitting invoices has increased to $82.50 (including GST).
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