Business

October 2024

February 2025

Targeted consultation is underway.

To understand the implications for business if eInvoicing becomes the preferred channel for government to accept invoices from suppliers, and to explore the support expected from the Australian Peppol Authority, particularly during the transition period.

Currently, use of eInvoicing via the Peppol network in Australia is optional. Despite efficiency and security benefits, adoption to date remains below the levels to needed to realise the broader productivity benefits associated with the technology. Consultation will explore how the Australian Peppol Authority can increase the use of eInvoicing for business to government transactions, how this would affect various segments of the community, and what support may be required to assist through the transition period.

• Small, medium and large businesses
• Tax and BAS agents
• Federal government departments
• Digital service providers

Mark Stockwell, Enterprise Solutions and Technology
Mark.Stockwell@ato.gov.au
Phone 07 3149 5022

October 2024

December 2024

Targeted consultation is underway.

To seek feedback on proposed changes to foreign resident capital gains withholding (FRCGW) website guidance to ensure the content is clear, relevant, and meets stakeholders’ needs.

The FRCGW regime in Australia requires Australian residents to obtain a clearance certificate from the ATO to avoid having 12.5% of the sale price withheld on property sales of $750,000 or more. Foreign residents have 12.5% withheld, which is paid to the ATO by the purchaser. Without a clearance certificate, Australian residents are treated as foreign residents, and the withholding applies.

Legislative changes to the FRCGW regime were announced in Mid-Year Economic and Fiscal Outlook 2023–24 and will come into effect from 1 January 2025. The key changes include:

• increasing the withholding rate from 12.5% to 15%
• removing the $750,000 withholding threshold
• applying the changes to relevant capital gains tax assets.

These changes are expected to significantly increase the number of clearance certificate applications.

We are updating our website guidance on the FRCGW to reflect the upcoming legislative changes. We are seeking feedback from law and conveyancing professional associations to ensure the proposed content is clear, relevant, and meets stakeholders' needs.

• Law and conveyancing professional associations

Louie Markovski, Superannuation and Employee Obligations
Louie.Markovski@ato.gov.au
Phone 03 9275 5333

October 2024

November 2024

Targeted consultation is underway.

To seek feedback on proposed website guidance that focuses on informing operators about key tax implications throughout the retirement village lifecycle.

We are seeking to publish web-based content that consolidates existing guidance which identifies tax issues, income tax and GST at each stage of a retirement village lifecycle. This web guidance does not introduce new views and is not intended to cover tax technicalities related to retirement villages. It aims to make taxpayers aware of their income tax and GST obligations using a lifecycle approach.

• GST Stewardship Group
• Private Groups Stewardship Group
• Property and Construction Stakeholder Relationship Forum

Rosie Cicchitti, Private Wealth
rosie.cicchitti@ato.gov.au
Phone: 07 3213 8073

June 2024

December 2024

Targeted consultation is underway.

To seek feedback on proposed additional examples of tax consequences on sales of land, including small-scale land subdivisions.

The ATO is seeking to expand on the published Tax consequences on sales of small-scale land subdivisions by adding to the examples currently on our Legal database.

The proposed expansion will centre around 3 current topical areas:

• properties acquired or held for multiple purposes, including resale for profit
• the circumstances which constitute mere realisation of a capital asset
• carrying on a business of renovating properties, also referred to as ‘property flipping’.

• Private Groups Stewardship Group
• Communication Content Working Group
• Property and Construction Stakeholder Relationship Forum

Andrew Fenn, Private Wealth
Andrew.Fenn@ato.gov.au
Phone 08 8208 1553

March 2024

November 2024

Feedback is being considered.

To seek feedback on proposed website guidance and examples relating to inbound related party financing by private groups in the property and construction industry.

The ATO is seeking to publish website guidance relating to inbound related party financing by private groups in the property and construction industry including examples of financing arrangements.

• Private Groups Stewardship Group
• Property and Construction Stakeholder Relationship Forum

Lynette Purcell, Private Wealth
Lynette.Purcell@ato.gov.au
Phone: 08 9268 6091

February 2024

December 2024

Consultation is underway.

To explore opportunities to help small businesses calculate their pay as you go (PAYG) instalments based on current financial performance extracted from business accounting software.

The Modernisation of PAYG instalment systems measure was announced by the government in March 2022 in the Budget 2022–23 (PDF 3.83MB)This link will download a file. Under the measure, companies can choose to have their PAYG instalments calculated based on current financial performance, extracted from business accounting software, with some tax adjustments. The intent is to improve alignment between PAYG instalment liabilities and profitability, and support companies in managing cash flows.

Small businesses can use software to manage their business operations and meet their tax obligations. The ATO is exploring how data within a small business’s natural digital accounting system could be leveraged to enable the calculation of PAYG instalments based on current financial performance, without the need for legislative change.

This is part of Improve small business tax performance, one of the key focus areas in the ATO corporate plan 2023–24. The ATO is collaborating with partners to build a digital-first tax ecosystem to enable seamless tax reporting from business source systems.

• Tax professional associations
• Digital service providers
• Financial technology providers
• Tax and BAS agents
• Small businesses

Michael Morton, Small Business
Michael.Morton@ato.gov.au
Phone 02 9374 2043

August 2023

December 2024

Targeted consultation is underway.

To seek feedback regarding implementation of the next phase (Tranche 2) of the Sharing Economy Reporting Regime including:

• public advice and guidance
• reporting requirements (data and lodgment).

Schedule 2 of the Treasury Laws Amendment (2022 Measures No. 2) Act 2022External Link requires operators of electronic distribution platforms (EDPs) to report information to the ATO on transactions relating to supplies made through the platform. This measure implements a recommendation of the report of the Black Economy Taskforce.

Under the measure, EDP operators are required to report transactions that occur on or after:

• 1 July 2023 if it relates to a supply of taxi services (including ride-sourcing) or short-term accommodation
• 1 July 2024 for all other reportable transactions.

The first phase (Tranche 1) of consultation, [202230] Sharing Economy Reporting Regime, considered EDP reporting transactions related to a supply of taxi service (including ride-sourcing) or short term accommodation.

Consultation for Tranche 2 will include all other reportable transactions for all other industries.

• EDPs operating across all other affected industries
• Peak body representatives
• Tax and other professional associations

Vanessa Kelly, Small Business Experience
vanessa.kelly2@ato.gov.au
Phone 02 4223 2851