The following key Taxation Rulings, Taxation Determinations, Interpretative Decisions and Law Companion Guides have recently been released:
Taxation Ruling 2018/3 explains the methods acceptable to the Commissioner for returning income derived and recognising expenses incurred in long term construction projects. This Ruling affirms that the completed contracts method remains unacceptable under the income tax law.
Law Companion Ruling 2018/1 discusses the amendments to the A New Tax System (Goods and Services Tax) Act 1999 made by Treasury Laws Amendment (GST Low Value Goods) Act 2017 (the Act) which applies from 1 July 2018. The broad purpose of the legislation is to ensure that Australian goods and services tax (GST) is payable on offshore supplies of low value goods that are purchased by consumers and brought to the indirect tax zone. In the Ruling, the ‘indirect tax zone’ is referred to as ‘Australia’.
Law Companion Ruling 2018/2 explains how GST will apply to supplies made through electronic distribution platforms (EDPs) from 1 July 2017. In particular, the Guidance explains the four steps of the EDP rules:
Whether a supply is made through an EDPWhether a supply is subject to the EDP rulesWhether a supply is excluded from the EDP rules, andif multiple EDPs are involved, which EDP operator is responsible for the GST.
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