A number of GST amendments came into effect on 9th December 2008 in relation to the margin scheme (property development transactions). These changes were essentially anti-avoidance amendments and others causing an increase in GST payable to the Australian Taxation Office.
The Australian Taxation Office has also released a new tax ruling on new residential premises where the property could not be sold and was rented out prior to sale. The ruling states that the Australian Taxation Office accepts a dual purpose for GST purposes and does not require immediate payback of input tax credits.
Finally, the Board of Taxation has released 46 recommendations to the Government for changes to the GST Act, of which 41 have been accepted. The main issue is the introduction of the four-year limit on claiming input tax credits. Taxpayers may wish to check to ensure all tax invoices have been claimed.
