If you engage contractors, it is essential to get the facts of the relationship right. Business owners need to take a proactive approach to reviewing arrangements to ensure that the business is not exposed to material liabilities.
The tax office will soon begin sending letters and notifications to small businesses, encouraging them to begin early use of Single Touch Payroll (STP).
The tax office now have the best computer system that they’ve ever had, and they’re putting it to use on the Australian public.
There are four things that the ATO won’t let slide in 2019.
They want the cash economy to be declaring all of their income. No excuses. They’re starting to look at money going in and out of bank accounts, above about $5,000 to $10,000. The tax office are also hammering GST in this area, using statistics and tax averages from specific industries to see if people are reducing their tax via the cash economy.
People of high wealth are often in extremely complicated tax situations to save themselves a lot of tax. However, the ATO knows that many smaller tax agents cannot cope with the complexity of the law. Hence, small tax agents working with high wealth individuals can expect an audit.
Finally, the Australian government are tackling the profit shifting of big multi-nationals. They are putting a target on tax dodging and kicking the money back to the Australian people.
If you’re claiming more than $2,000 to $5000 in a particular deduction area on your individual tax return, it’s likely you’ll get caught. Make sure you have your receipts, make sure you’re claiming things according to tax law. This is the second year that the tax office have targeted this area, and last year they discovered thousands of incorrect claims.
If you are a business that provides cleaning or courier services, you will now need to lodge a Taxable Payments Annual Report (TPAR) to inform the ATO about your payments to contractors.
We can’t guarantee that they’re safe… but we can tell you that now is a great time to think about making the most of your kids while you’re owning a small business.
The small business owners who haven’t paid their employees super, have finally been caught out.
My message to business owners is take a chill pill. All will be sorted.