Payment Summaries are No Longer Required
20 Employees or More
If you are a business with 20 employees or
more, you will no longer need to issue Payment Summaries and you have until 14th
July to have your declarations finalised.
Less Than 20 Employees
If you are a smaller business of less than
20 employees, you are required to start using STP as of the 1st of
July 2019; you will also no longer need to provide Payment Summaries if you have started using STP already and
have until 31st July 2019 to have your declarations finalised. Micro
businesses have extra time concessions so speak to your accountant in regards
to your circumstances.
whose employer has already started using STP will be able to access their Income
Statement from myGov; which will
information and tax that has been paid on their behalf.
Small Businesses Owe the ATO $15 billion
In Australia there are 3.8 million small
businesses which includes 1.6million sole traders many of who are employers and
collectively they owe the ATO $15 billion, so this tax season the ATO is
looking at trying to recover some of its debt. Areas the ATO are targeting
up or changing to a company structure
motor vehicle expenses
expenses that may not be correctly apportioning between personal and business
The ATO are using data matching software
and benchmarking to analysis the data and are clamping down on business owners
trying to make unwarranted claims.
To Receive a Tax Deduction,
You Must Meet Your Tax Obligations
From 1 July
2019, if you have not met your PAYG withholding payments and reporting obligations
then you will not be able to claim a tax deduction for payments of the
- salary, wages, commissions, bonuses
or allowances to an employee;
- directors’ fees;
- to a religious practitioner;
- under a labour hire arrangement; or
- made for services where the supplier
does not provide their ABN.
exceptions in some instances so speak to us if you are unsure.
July 2021 the Government has proposed that ABNs of taxpayers who are required
to lodge a tax return but haven’t done so will be cancelled. Also from 1 July
2022, ABN holders will be asked to confirm that their Australian Business
Register details are correct each year.
Increased Reporting of Payments
to Contractors for Some Industries.
From 1 July
2019, increased reporting of payments made to contractors who work within certain business sectors that
have the potential to be active in the black economy will be required. This ATO
requirement is said to collect approximately $2.7bn per year in lost in income
and GST liabilities.
that will be affected are:
- security providers and
- road freight transport
- computer system design and
related services businesses
the building and construction industry, cleaning, and courier services already
had to report payments to contractors and will need to do so by 28 August 2019
for the 2018 -2019 Tax Period.
Trust Distributions Must
be Completed on Time
Distribution decisions for your trust must be made in writing by 30th
June 2019 or you may risk the trusts income going to the default beneficiary or
the trustee which could result in tax implications. If you have not completed
and signed your trust minute for 2019 we will be reminding you soon.
Have You Paid Your Superannuation?
The ATO now
allows for people who have been out of the work force this year, like new Mums
or Students to top up their superannuation contributions. Small Business Owners
often forget to pay super for themselves as well.
You can top
up your super if you have a total superannuation balance below $500,000 as at
30 June 2019; and have not utilised your entire concessional contributions cap
($25,000) for the year. You can ‘carry forward’ the
unused amount of the yearly
contributions on a rolling 5 year basis.
“For example, if your total concessional
contributions in the 2018-19 financial year were $10,000 and you meet the
eligibility criteria, then you can carry forward the unused $15,000 over the
next 5 years. You may then be able to make a higher deductible personal
contribution in a later financial year. If you are selling an asset and likely
to make a taxable capital gain, a higher deductible personal contribution may
assist in reducing your tax liability in the year of sale.”
Some conditions apply so please check with us.
If you have any questions or are unsure how
any of these changes may affect your business please ring HBG Tax and Accounting on 08 9594
article was written based on information supplied from Knowledge Shop
Newsletter June 2019.
material and contents provided in this article is of informative in nature
only. It is not intended to be advice and you should not act
specifically on the basis of this information alone. If expert assistance
is required, professional advice should be obtained.