Topics list:
2019/2020 Budget
The ATO continued focus on the cash economy
Single touch payroll, are you ready?
New industries entering the taxable payments reporting system
Scammers impersonate ATO phone numbers
2019/2020 Budget Update
The Government handed down the 2019/20 Federal Budget on Tuesday 2 April 2019.
Some of the important proposals include:
**Increasing and expanding access to the instant asset write-off from 7:30 pm (AEDT) on 2 April 2019 (i.e., ‘Budget night’) until 30 June 2020, as follows:
– Increasing the instant asset write-off threshold from $25,000 to $30,000.
– Making the instant asset write-off available to medium sized businesses (with aggregated annual turnover of $10 million or more, but less than $50 million).
The legislation to make the above changes to the instant asset write-off has already been passed and received Royal Assent.
**Allowing individuals aged 65 and 66 years to:
– make voluntary superannuation contributions (both concessional and non-concessional) without meeting the work test from 1 July 2020; and
– make up to three years of non-concessional contributions under the bring-forward rule (without satisfying the work test).
**Increasing the upper threshold of the 19% personal income tax bracket to $45,000 from 1 July 2022, and reducing the 32.5% marginal tax rate to 30% from 1 July 2024 (in addition to changes already legislated).
**Increasing the Low and Middle Income Tax Offset (‘LAMITO’), with effect from the 2019 income year, to provide tax relief of up to $1,080 per annum, as well as an increased base amount of $255 per annum.
Continued focus on the cash economy
ATO Assistant Commissioner Peter Holt has announced that, in the 2019/20 financial year, the ATO will be visiting a further 10,000 small businesses across the country, including up to 500 small businesses in Tasmania.
He further said that businesses that advertise as 'cash only' and businesses that are operating outside of the ATO's performance benchmarks for their industry will be especially targeted for a visit from the ATO.
Businesses in the following industries are most likely to get a visit from the ATO:
Restaurants and cafes;
Vehicle repairers;
Personal care businesses including hairdressers and nail salons;
Pharmacies;
Construction businesses;
Clothing stores;
Grocery stores / small supermarkets; and
Butchers.
Single touch payroll, are you ready?
If you have 20 or more employees then you will already be organised and using single touch payroll to report to the ATO. If you have 20 or less employees, you need to be ready by 30 June next month.
If you need help to get sorted please call me to ensure you are compliant by the deadline.
New industries entering the taxable payments reporting system
The ATO has reminded businesses that provide road freight, information technology ('IT'), security, investigation, or surveillance services that they need to lodge a Taxable payments annual report ('TPAR') each year to tell the ATO about the payments they make to contractors who use an Australian business number ('ABN') (even if these services are only part of their business activities).
Such clients' first TPAR will be due by 28 August 2020 for payments made from 1 July 2019 to 30 June 2020.
We can help with the lodgment of this report, but affected clients will need to keep records of the payments made to contractors. The required information, including the contractor's ABN, name, address, and total amounts paid during the financial year (including GST) will normally be contained in the invoices received from the contractors.
Scammers impersonate ATO phone numbers
The ATO is warning that scammers have adopted ‘Robocall’ technology to target taxpayers across the country.
Assistant Commissioner Gavin Siebert said: “Scammers are sending pre-recorded messages in record numbers and are manipulating caller identification so that your phone displays a legitimate ATO phone number despite coming from an overseas scammer”.
“If the scammers do make contact, they will request payment of a tax debt – usually through unusual methods like bitcoin, gift cards and vouchers. Legitimate ways to pay your tax debt are listed on our website. The scammers will threaten you with immediate arrest, attempt to keep you on the line until payment is made and may become rude or aggressive.”
The technique of displaying misleading phone numbers is known as “spoofing” and is commonly used by scammers in an attempt to make their interactions with taxpayers appear legitimate.
PLEASE NOTE: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should call my office for advice regarding your particular situation and applicability to your particular circumstances.
How to Schedule an Appointment
Go direct to my appointment scheduling link here: calendly.com/ldaaccounting/
OR
Go to my website's 'Book Online' page (www.ldaaccounting.com.au), choose the appointment time that best suits you.
Scheduling this way will save you time and you'll easily find an appointment time to suit you first go.