Our latest insights

As the Real Estate and Construction industry continues to face increasing costs, thin profit margins, heightened scrutiny and regulatory changes, the potential for fraud and corruption is higher than ever. What measures can your business put in place to best stay protected in the face of rising financial crime?

The recent Court decision in the Bechtel Australia Pty Ltd v FC of T 2023 (the Bechtel case) ruling that fly-in-fly-out (FIFO) employees’ travel is deductible, has created a shift in the treatment of travel expenses for workers in mining, gas, transport and other industries. This ruling contrasts with the John Holland Group Pty Ltd v Commissioner of Taxation [2015] FCAFC82 (the John Holland case), causing notable effects.

A new financial year brings a new property tax in Victoria. The Windfall Gains Tax (WGT) came into effect on 1 July 2023, with significant implications for the Victorian real estate and construction sector. Here, we discuss the details to be mindful of when considering the WGT.

Australia is at the pointy end of a long-standing housing crisis. On top of this, the cost of renting a home has escalated rapidly, reaching all-time highs in many cities with vacancy rates the lowest we’ve seen in years. How is the complexity of this problem impacting businesses and investors navigating transaction and investment structures or seeking to attract essential resources, alongside a challenging construction market? Will the May Federal Budget bring any changes to announcements made in October?

Are you up to date on your TPAR obligations? The Australian Taxation Office has begun to actively issue failure to lodge penalties for businesses who are behind on their TPAR lodgements.

The Queensland Government announced that the expansion of Project Trust and Retention Trust Accounts originally scheduled to take effect 1 April 2023 will be extended by three years to 2025. Eligible contracts valued between $3m and $10m will now need to comply from 1 March 2025, and contracts above $1m will need to comply from 1 October 2025.

Real Estate and Construction (RE&C) companies are continuously looking for ways to innovate, optimise processes, remain competitive and ease the pressure. To incentivise innovation activities onshore, the Federal Government’s Research and Development Tax Incentive (RDTI), Australia’s flagship innovation program, is available to support businesses across all industries undertake research and development (R&D) activities.

From 1 April 2023, private sector, government-owned corporations and local government contracts valued at $3m or more (excl. GST) become subject to the Project Trust Account (PTA) regime. The threshold further drops for these valued to $1m from 1 October 2023. Organisations impacted by the requirement to operate PTAs on each project they undertake need to prepare for the additional regulatory compliance required, as well as the cashflow implications of restricted access to progress claim receipts and subcontractor retention monies after the relevant commencement date.

It has been a busy month for State Taxes around the country. This month we saw the validity of foreign surcharges in question, proposed changes to NSW stamp duty in the lead up to the State election, Victoria’s recent inquiry into stamp duty and windfall gains tax changes.

With soaring building costs and interest rates on the rise, builders and property developers are seeing their margins eroded and losses accumulating from development projects.

ATO's draft GST Determination for Margin Scheme Valuations may soon require property developers to obtain new or ‘confirmed’ valuation reports to support the application of the margin scheme for sales of real property that occur outside of the three-month transitional period. Read more about the impact on businesses and the property market.

As we watch the ramifications of the recent widespread data breach continue to play out in the media and on the floor of Federal Parliament, I keep reflecting on the requirements of APRA Prudential Standards CPS 234: Information Security and the draft Prudential Standard CPS 230: Operational Risk Management. If ever there was any doubt in the minds of Boards or Management as to why the focus on cyber security and operational resilience, then the current situation brings this into stark focus.