Happy NEW Financial Year – ATO Changes Update

TPAR – Taxable Payments Annual Report

The Australian Government’s effort to garner taxes from people working outside the tax regulation system has meant you’ll need to report payments you’ve made to any and all contractual workers where labour/service costs have been included in their invoices to you during the financial year. The ATO uses the information you provide to ensure those contractors are meeting their tax obligation.

If your business provides building and construction services, then you will already be filing a TPAR, however from 1 July 2018, if your business provides cleaning services and/or courier services, then you will also need to lodge a TPAR this year by 28 August 2019.

From 1 July 2019 if your business provides road freight services, information technology (IT) services or security, investigation or surveillance services, then you will need to lodge a TPAR next year by 28 August 2020.

YML Group can guide you in fulfilling your ATO tax payment reporting obligation and assist you with your TPAR lodgement.

PAYGW – Pay As You Go Withholding

From 1 July 2019 you will no longer be allowed to claim a tax deduction for PAYGW expenses if you do not meet your ATO reporting obligations. If you failed to withhold PAYG tax from a payment OR if you withheld PAYG tax from a payment without informing the ATO, then you may not claim a deduction for those payments.

Voluntarily disclosing these errors to the ATO prior to the ATO commencing an audit will enable you to make a claim.

Remember to consider all PAYGW obligations for salaries, wages, commissions/bonuses, allowances, director fees, labour hire and/or payments made to contractual workers including those without an ABN.

STP – Single Touch Payroll

STP was introduced by the ATO to streamline reporting of salaries, wages, PAYG withholding taxes and superannuation contributions. From 1 July 2019 all small businesses must comply by submitting a single – digital – report after every pay day via a cloud-based payroll system using STP-enabled software from a STP software provider.

You can access STP solutions via the ATO’s website and/or an internet search, but we suggest you might like to call YML Group on 02-8383 4400 – if you do not currently use cloud accounting software, ask for Sarp from our Innovation division – to provide you a quote for our services to assist you with becoming ‘STP-compliant’.

Be aware that STP is a compulsory ATO requirement and non-compliance may result in ATO penalties.

SBE – Small Business Entity Concessions (Instant Asset Write-off)

From 2 April 2019 small- and medium-sized businesses may claim – until 30 June 2020 – an ‘instant asset write-off’ deduction of up to $30,000 for each asset purchased, installed and/or in use as at 2 April 2019.

To be eligible for this SBE concession, your business must have an annual turnover of up to $50 million.

Note that the threshold of $30,000 is the entire asset cost including GST (if you’re not registered for GST), but is the asset cost excluding GST (if you are registered for GST).

Medical Expenses (Tax Offset)

Financial year 2018-2019 was the last year – under special circumstances, namely disability aids, attendant or aged care – to claim the net medical expenses tax offset. This tax offset has now been phased out and is not an option from financial year 2019-2020 onwards.

Proposed CGT Exemption for Foreign Residents with Main Residence

A recent proposed Bill by the Australian Government in relation to the removal of the CGT main residence exemption for foreign residents has lapsed, therefore will no longer take effect.

How can YML help?

Talk to our Accountants today to see how YML Chartered Accountants can assist you with your ATO obligations. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.