THE Australian Retailers Association (ARA) strongly supports the Federal Government in closing the Low Value Threshold (LVT) loophole for the purchase of offshore tangible goods under $1000.

Russell Zimmerman, Executive Director of the ARA said they have been working with the Federal and State Governments to reduce the low value threshold and provide a level playing field for Australian retailers.

“This is a tax equity issue and internationally-based retailers should pay their fair share of tax,” Mr Zimmerman said.

“Retailers conducting business in Australia should pay their tax just like Australian retailers currently do.”

The ARA has said this GST has been a long time coming, expressing thanks to then Assistant Treasure Bill Shorten for his commencement of the process in 2011.

“Multiple jurisdictions are already introducing similar laws as this is a global tax issue,” Mr Zimmerman said.

“This new legislation will create a fairer tax system for Australian retailers by creating a level playing field against international competitors.”

This new model may not be perfect but the ARA believes that the proposed system is the best model at this point.

“Freight companies and credit card businesses should not be responsible for collecting this tax, the onus should fall on internationally-based businesses to collect it” Mr Zimmerman said.

“Australian retailers already collect this tax in Australia, therefore it is unnecessary to complicate this process and allow international retailers to continue to exploit this legislative loophole.

“We already know that overseas retailers selling online have the capability of charging taxes as required by Australian law,” Mr Zimmerman said.

The ARA will be appearing as witnesses at the Senate Economics Legislation hearings this Friday, 21 April, to reiterate the importance of this GST.

“We strongly support this proposed GST model and will continue to work with the Government to resolve any implementation issues,” Mr Zimmerman said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE Institute of Public Accountants (IPA) suspects that another protracted trust law court case will cause the Federal Government more grief and highlight the long overdue need to reform trust tax law.

“The unfinished business of reforming trust tax laws has come back to haunt the government; it was not that long ago that the government had to make some hasty complex changes to trust laws following the land mark Bamford case,” said IPA chief executive officer, Andrew Conway.

“It looks like the government may be in the same position following a recent Full Federal Court Decision of Thomas v Commissioner of Taxation (2017) FCAFC57.

“In this particular case the taxpayer allocated dividend franking credit entitlements as it saw fit. The long established trust law principal is that franking credits must flow to beneficiaries in the same proportion as the dividend income and they cannot be specifically allocated to achieve an optimal tax outcome even if permitted by the trust deed.

“It seems the decision in the Full Federal Court has allowed a taxpayer franking credits to flow to beneficiaries not in a way the legislation was intended to operate, underscoring the odd outcomes that can still arise with trusts. 

“The distribution of franking credits to beneficiaries independently of the related dividends goes against established principles.

“Franking credits should ordinarily flow to the shareholder who received the dividend but this seems to be different in this case.

“After many years of trust tax reform discussions and various court rulings there is still a considerable degree of uncertainty in our tax system when it comes to trusts and the need to reform remains, especially in light of the fact that many businesses use trusts as the vehicle to operate their business,” said Mr Conway.

publicaccountants.org.au

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THE ACS, the professional association for Australia’s ICT sector, today welcomed changes to skilled migration policy in Australia, following the Turnbull Government’s plans to abolish the Subclass 457 Visa in favour of a new Temporary Skill Shortage (TSS) Visa, as a measure to address genuine skills shortages in Australia[1].

The aim of the new TSS Visa is to ensure Australian workers have priority to Australian jobs, while at the same time ensuring Australian businesses have access to temporary and critically needed talent.

ACS president Anthony Wong said, “Strengthening labour market testing was one of ACS’ key recommendations in our May 2014 submission to the Independent Review of Integrity in the subclass 457 programme[2]. We are pleased to see this is a key focus in the Prime Minister’s announcement.”

The new TSS Visa will include a strengthened training obligation for employers sponsoring foreign skilled workers to provide enhanced training outcomes for Australians in high-need industries and occupations.

“While labour market testing and training benchmarks have previously existed in the 457 Visa framework, we see tightened criteria under a TSS programme as an important signal that the Turnbull Government understands the need to treat Australia’s human capital as a strategic asset as we expedite our transition to the digital and knowledge-based economies,” Wong said.

Mr Wong further added, “Skilled migration in all its forms should be a source of competitive advantage for any country.  It should never be at the expense of the domestic labour market and attracting full workforce participation.”

The implementation of the new reforms is expected to be completed in March 2018.

About the ACS 

The ACS is the professional association for Australia's Information and Communication Technology (ICT) sector. Over 22,000 ACS members work in business, education, government and the community. The ACS exists to create the environment and provide the opportunities for members and partners to succeed. The ACS strives for ICT professionals to be recognised as drivers of innovation in our society, relevant across all sectors, and to promote the formulation of effective policies on ICT and related matters. Visit www.acs.org.au for more information.

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QUEENSLAND Resources Council chief executive Ian Macfarlane has released a statement on the abolishment of 457 visas in relation to the mining and resources industries in Australia.

"The natural resources sector is no longer a significant employer of 457 visa holders, with further recent decreases since the mining construction boom days," Mr Macfarlane said.

"Those that are employed possess highly specialised skills and experience, particularly, university degrees. The QRC welcomes Prime Minister Malcolm Turnbull saying we’ll only take the best and brightest from overseas.

"The total number of 457 visas given to workers in the mining industry in 2015/16 was a quarter of that of industries with health services and a fraction of the hospitality industry.

"Last financial year, 457 visa holders in the Queensland mining industry decreased by 26.5 percent. Hospitality, health care, education, construction, manufacturing, IT and professional services are the big users of 457 visas.

"QRC is working with the resources industry to build the numbers of young people taking up a resources career.

"The QRC’s own Queensland Minerals and Energy Academy (QMEA) builds educational capacity and skills in local regions by facilitating a range of both professional and vocational STEM experiences for students and their teachers from years 7 to 12.

"Growing the skills base in communities is a great investment for the company and the locals and is a valuable part of resource companies’ social and economic responsibilities in the areas where they operate."

www.qrc.org.au

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