Business tax changes for a new financial year
NO TAX DEDUCTIONS IF YOU DON’T MEET YOUR TAX OBLIGATIONS
From 1 July 2019, if taxpayers don’t meet their PAYG withholding and reporting obligations to the ATO, they will not be able to claim a tax deduction for payments:
- of salary, wages, commissions, bonuses or allowances to an employee;
- of Director’s fees;
- to a religious practitioner;
- under a labour hire arrangement; or
- made for services where the supplier does not provide an ABN.
If you make a mistake and voluntarily correct it before the ATO begins a review or audit, a deduction may still be available but penalties may still apply for failure to withhold the correct amount of tax.
PAYMENTS TO CONTRACTORS
Payments to contractors operating in certain industries need to be reported to the ATO by 28 August 2020.
This Taxable Payment Report is required for:
- Building and construction services
- Cleaning services
- Courier services
- Road freight services
- Information Technology (IT) services
- Security, investigation or surveillance services
- Mixed services (providing one or more of the services listed above)
SUPERANNUATION GUARANTEE AMNESTY
The Superannuation Guarantee (SG) amnesty provides a one-off opportunity to disclose historical non-compliance with the superannuation guarantee rules and pay outstanding superannuation guarantee charge amounts.
7 September 2020 is the last day that employers can take advantage of the SG amnesty.
This only applies to voluntary disclosures.
To qualify for the amnesty, employers must disclose the outstanding SG to the Tax Commissioner. You either pay the full amount owing, or if the business cannot pay the full amount, enter into a payment plan with the ATO. If you agree to a payment plan and do not meet the payments, the amnesty will no longer apply.