Category: Small Business Tax

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.

• The cash economy.

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.

• High wealth individuals.

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.

• Multi-nationals profit shifting.

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.

• Work-related deductions for employees.

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’re unsure about your tax strategy or what you can legally claim, you can come and speak to a Tax Champion at a no-obligation, complimentary consultation.