Tax housekeeping matters to put you on the right path for 2020

BY SHAREE WEBSTER, CA DIRECTOR, HOLMANS ACCOUNTING & TAXATION

Welcome to 2020! A new decade in the making. Here are some tax matters to start the year off on the right footing. Best to action now so the second half of the 2020 financial year, is the best.

EXTENSION GRANTED BY THE ATO DUE TO BUSHFIRES

Please check your Australian Tax Office (ATO) portal/bookkeeper/accountant to see if you are eligible for an extension for your tax obligations. If you are in a fire-affected area, you now have an extension until May 28, 2020 to lodge and pay business activity statements and tax returns.

ACCESSING THE ATO BUSINESS PORTAL

From April 1, 2020 the ATO will remove the AUSkey system. Businesses will no longer be able to use this system to communicate with the ATO, instead they will need to use the new myGovID. For the new system you will need a smart device so we recommend you plan ahead to avoid any last- minute issues.

SUPER GUARANTEE (SG) AMNESTY

The Government is working towards introducing its SG amnesty Bill into Parliament in February 2020. If it’s approved by the Senate, the Bill will allow employers to catch up unpaid super for employees without fees and penalties.

This assists with a past problem, but not the future. All employers should now be on Single Touch Payroll system, which provides the Tax Office with real time information on wages and super payments. Businesses should be making sure they are keeping their cashflow up to date to ensure fines won’t be applicable for the non-payment of employee super.

CHANGES TO DEDUCTIBILITY OF PAYMENTS

From July 1, 2019 the ATO will disallow deductions for payments to workers and contractors if you haven’t withheld the correct amount of tax. We can’t cover all the new rules here, however two rules to keep in mind are:

Tax must now be withheld when:

1. Paying directors fees and
2. No Australian Business Number (ABN) has been quoted by contractors.

Remember when paying contractors to check the ABN is valid.

QBCC ANNUAL REPORTING – OOPS, MISSED THE LODGEMENT DATE?

By now all licensees should have lodged mandated Financial Statements of their “most recent reporting year”. If, however, you failed to meet the deadline, you should submit as soon as possible to avoid the QBCC taking regulatory action.

Recommendation: If the QBCC is yet to contact you, we recommend you contact them to discuss your options moving forward.

Don’t forget: If you couldn’t meet the deadline due to hardship – ensure you notify the QBCC as an extension may be provided at their discretion.

Download a printable version

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Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

Sharee Webster joined Holmans in April 2007. Sharee manages the Holmans Maroochydore office, which was opened in April 2008. Sharee is a Chartered Accountant and holds a Bachelor of Commerce from the University of Queensland, a Chartered Tax Adviser from the Taxation Institute of Australia and a Registered Tax Agent. At Holmans, Sharee specialises in business structures, taxation advice, superannuation and in particular Self-Managed Super Funds (SMSFs). She has extensive experience in providing strategic tax advice to private clients, owner-operated family businesses and large corporate entities.