1. What’s trending in tax: The refund in need of a refuel.

An idea initial behind the diesel refund system is that it should help local producers retain international competitiveness, it encourages primary production in the country and create fairness for non-road and transport operations that are exempt from claiming any benefit from the Road Accident Fund. Some producers in the relevant industries are questioning whether the diesel refund is even worth applying for. These views arose as a result of the challenges facing the current system which include a share VAT administration, primary production authorisation and outsourcing of operations. In an attempt to address these concerns the National Treasury and SARS released a paper titled “Review of the Diesel Fuel Tax Refund System” and through this paper they proposed a new diesel refund administrative system. The intention of the new system is to help address the major shortcomings of the current system. The shortcomings that are identified in the paper isknow as overly rigorous registration requirements, Primary production authorisation, Outsourcing of operations and Logbook compliance. The long-term reforms proposed in the paper include the following ; the imposition of a diesel sectoral registration threshold(which taxpayers will not be able to claim the refund), the continued reliance on logbook information for enforcement and audits under the new system based on risk profiling of diesel refund beneficiaries.

(TAXTALK, South Africa’s Leading Tax Journal, Professional, Issue 64, SAIT) 

2.

• The Federal Government of Australia has jurisdiction tax to Australian residents on their income from worldwide sources and non-residents on only their Australian sourced income, a progressive scale system is used by Australia for the purpose of taxing individuals, under the progressive scale system the rate of tax payable increases as taxable income increases.
• FBT(Fringe Benefits Tax) is on the value of non-cash benefits provided by employees, therefore benefits must be connected to the employee’s employment in order to be taxable(FBT is levied on the provider of the benefit at a flat rate of 46,5% and may be deductible against employer’s taxable income.
• Medicare Levy : (Australia’s public health insurance scheme is know as Medicare) The Medicare Levy is imposed at a flat rate of 1.5% of an individual’s taxable income there is also a exemptions that us given to low income earners and foreign residents
• Medicare Levy Surcharge :the Medicare Levy Surcharge is at a additional flat rate of between 1-1.5% imposed on high income earners who doesn’t have private hospital insurance.
• Luxury car tax: Luxury car tax is at a flat rate of 33%  when a luxury car is sold or imported into Australia, certain rules specify what amount and circumstances it will attract the luxury car tax, although generally applies to cars that is valued over either $60 000 or $ 75 000 (depending on the fuel consumption of the luxury vehicle).

(http://hallandwilcox.com.au/a-guide-to-taxation-in-austrailia/)

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