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Category Archive for: ‘Small Business’

Contractors in cash economy hit with tax bills

Hundreds of thousands of building industry contractors who may have dodged their GST or income-tax obligations have been hit with $2.3 billion in tax bills.  But their could be billions more outstanding, as the Australian Taxation Office (ATO) continues data matching information reported to it to identify operators in the cash economy. A reporting system was introduced in 2012-13 that …

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Employers and SMSFs – SuperSteam Ready?

With 30 June 2015 deadline fast approaching for medium to large employers to be SuperStream compliant, the ATO is urging these employers to act now to ensure they are SuperStream ready. Editor:  For ‘small employers’ with 19 or fewer employees, SuperStream starts from 1 July 2015 and they have until 30 June 2016 to be ready (though they can start …

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Are your contractors really employees?

Are your contractors really employees? The ATO continues to enjoy a high success rate challenging the treatment of contractors under the superannuation guarantee (SG) legislation.  Despite recent comments made by the Government that the ATO should ‘relax’ its approach to contractors, the ATO has no reason to simply walk away from such a potentially lucrative revenue stream – why would …

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The push for change; impact for business

The push for change; impact for business The Senate composition changed on 1 July and with it, the Government’s opportunity to push for change through its reform agenda.  The reintroduced repeal Bills for the Carbon Tax and Mining Tax have already passed the House of Representatives with high expectations of being passed by the new Senate when it sits on …

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Clear out the old: End of Financial Year housekeeping

Clear out the old: End of Financial Year housekeeping For business, July is the month you need to make sure you have properly closed off the last year and can start the New Year the right way.  Here is the essential checklist to prevent last year overflowing into this year:   •   Reconcile your GST control account. •   Does the …

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Fringe Benefits Tax rate increase

Fringe Benefits Tax rate increase The Fringe Benefits Tax (FBT) rate will increase by 2% from 47% to 49% from 1 April 2015 until 31 March 2017.  The increase is to prevent individuals attempting to use the FBT system to avoid the 2% Temporary Budget Repair Levy.    The cash value of benefits received by employees of public benevolent institutions …

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More tax returns will need to provide bank account details

More tax returns will need to provide bank account details From 1 July 2013 individual income tax returns lodged with the ATO required banking details to be available where a return was estimated.  From 1 July 2014, banking details will also be required on other types of returns; and they are:- •   FBT return (from 1 April 2014) •   Company …

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BUSINESS CONCESSIONS LOST

From 1 July 2012, as part of the introduction of the Carbon Tax and the Mineral Resources Rent Tax (MRRT), policies were introduced to provide small business entities to some very favourable depreciation deductions. Specifically, *  An immediate write off for depreciating assets that cost less than $6500 *  An immediate deduction for the first $5000 for any motor vehicle …

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Hands off our Superannuation!

As the government has belatedly identified a budget shortfall along with the failure of the mining tax to raise any real revenue, the $1.5 trillion superannuation industry has become a convenient target  to raise additional revenue from. Notwithstanding the recent announcement on increasing the tax rate for certain individuals, there is continuing media speculation that the fiddling with superannuation by …

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Data Matching – Motor Vehicles – ATO ramping up the monitoring of taxpayers

The Tax Office announced a motor vehicle data matching program that is aimed at identifying all vehicles sold, transferred or newly registered in 2011-12 and 2012-2013 where the transfer or market value is $10,000 or greater.  This will; Identify taxpayers whose expenditure is in excess of their reported income Identify businesses that sell vehicles and do not report, or under-report …

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Data Matching – Contractors that have been providing services to local governments and shires! ATO ramping up the monitoring of taxpayers

A data matching program conducted by the Tax Office will examine various local government and shire councils across Queensland, Victoria, Tasmania and NSW.  A sample being looked at by the Tax Office consists of contractors that have or had provided services to them.  A key objective of this exercise is to identify non-compliance with lodgement and payment obligations under the …

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Data Matching – Businesses beware! ATO ramping up the monitoring of taxpayers

A series of data matching initiatives by the ATO will provide them with information that could reveal businesses that are failing to pay the right amount of tax.  The ATO recently announced that a credit and debit card data matching program would match sales made by taxpayers against the taxpayer’s records to identify risk of the taxpayer under-reporting or omitting …

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Small business… big impact

Small business is the backbone of the Australian economy!  We’d like to share with you some interesting statistics sourced from the IPA’s professional journal – January issue.  To keep things in perspective, a definition of what a ‘small business’ means does differ globally so here are the definitions relative to various global regions. Australia, fewer than 20 employees Asia (generally) …

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WHY YOU NEED AN ACCOUNTANT

Traditional Image of accountants Bean counters, keepers of the ledgers (those large bound volumes covered with rows and columns of numbers; making sense to other accountants), the quiet introvert unravelling the mysteries of the numbers before him, reporters of business profits or otherwise. The Modern day accountant Modern computer systems facilitates the manual arithmetic of the now defunct ‘ledger’; the …

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ATO COMPLIANCE 2012-13

WHAT INDIVIDUALS AND BUSINESSES SHOULD KNOW The ATO has published its Compliance program for 2012-13.  It has highlighted areas of focus for individuals, micro enterprises small to medium enterprises and large businesses. Over the coming year, the ATO says it will focus on the following compliance risks for individuals: incorrect or fraudulent refunds from over-claiming and deliberate fraud review of …

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Tax with Integrity

Tax with Integrity