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Advice from Outside the Square

Monthly Archives: March 2018

Tax Updates March 2018

In this tax update:
  • Bill to implement housing affordability CGT changes
  • Changes to small business CGT concessions
  • Bill to change residential property GST arrangements
  • ATO moving to combat the black economy
  • Corporate tax avoidance: ATO's latest targets

Bill to implement housing affordability CGT changes

As part of the 2017–2018 Budget, the Federal Government announced a range of reforms intended to reduce pressure on housing affordability. Legislation has now been introduced into Parliament that proposes to:
  • remove the entitlement to the capital gains tax (CGT) main residence exemption for foreign residents; and
  • modify the foreign resident CGT regime to clarify that, for the purpose of determining whether an entity’s underlying value is principally derived from taxable Australian real property (TARP), the principal asset test is applied on an “associate inclusive” basis.
The Bill also proposes to amend the tax law to provide an additional discount on CGT for affordable housing. The discount of up to 10% will apply if a CGT event happens to an ownership interest in residential property used to provide affordable housing. The main residence exemption means that CGT doesn’t apply...
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How Can Independent Board Members Add Value?

I recently had a very interesting conversation with my friend, an independent Board member of an Indigenous corporation that I consult to. I think he is a very valuable Board member, contributing sound advice from his experience of business in general, his knowledge of good governance practice, and from his personal knowledge of the pastoral industry sector that the corporation was in. Yet, in our conversation we spoke about how the corporation was not progressing, for a variety of reasons including the inability to resource enough talent as full time employees. He made the statement: "It's something I struggle with, how an independent Board member can actually add value to an organisation and not just 'advise' at a strategic Board level; and even more generally how a Board itself can add real value to the organisation." (more…)...
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