From 1 July 2012, businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year. You need to report these payments to the Australian Taxation Office (ATO) on the Taxable Payments Annual Report.
 
To make it easier to complete the annual report you may need to change the way you currently record your contractor information.

Background

The Australian Business Register (ABR) is running a program to cancel the Australian business numbers (ABN) of individuals where records show they are not carrying on an enterprise. The program started in December 2011 and will continue throughout 2012. The ABR regularly reviews applications and cancels the ABN's of individuals who are no longer entitled, or who have never been entitled, to an ABN.

    
The Australian Taxation Office ("ATO") is making it harder for people in business who deliberately use cash transactions to hide income and evade tax obligations - making it fairer for everyone.

This includes businesses:

•     paying cash in hand wages

•     skimming some or all of the cash takings

•     running a part of their normal business activities off the books

In April 2011, the Australian Tax Office will be writing to selected employers about exempt vehicles and car fringe benefits.

Australia’s first national Paid Parental Leave (PPL) scheme started on 1 January 2011. This means from 1 July 2011, employers must provide parental leave pay to their eligible long-term employees.

Employers can register at any time to provide parental leave pay to their eligible employees through the Centrelink website at www.centrelink.gov.au

Clients may be interested to know that parental leave pay:

Will be provided to them by the Family Assistance Office in advance of their employee’s usual pay cycle;

Taxation of Family trusts has been a focus of attention for the Australian Taxation Office (ATO) in recent months.

It has issued a number of statements lately, most notably in early June 2010 when it released important documents dealing with two issues:

1. Allocating trust income to company beneficiaries, and

2. The High Court decision in Bamford. As a result, trustees of family trusts should check their trust deeds and income distribution practices.

COMPANY BENEFICIARIES

Cash Sales - New Tax Office Benchmarks!

Are you? - A small business owner?
 
The Tax Office recently released a new category of small business benchmarks which focus on cash sales within a business.
 
You should be aware of the new benchmarks for small business.

- Contact us if you require any clarification or advice. 
 

Changes to Rules Governing Company Dividend Payments are now in Force

Are you? - A company director considering paying dividends?
 
At a glance:  - The Government has made amendments to the Corporations Act to alter the conditions under which dividend payments can be made.
 
You should:  - Consider whether the changes will have an effect on your company's dividend policy.
- Contact us if you require any clarification or advice. 
 

Businesses may have to pay superannuation to contractors in some circumstances after the Australian Taxation Office (ATO) succeeded in three separate actions.

The ATO won its arguments the contractors were actually employees, so their employers were required to pay the compulsory superannuation guarantee (SG) levy on their behalf.

The Australian Tax Office (ATO) is launching a data matching program focusing on individuals and businesses who have sold more than $20,000 in goods and services on the online selling sites eBay and The Trading Post in any of the last three financial years.

If you are running a business through online selling sites, or you have an existing business and are making additional sales through these sites, then you need to include this income in your activity statement and/or tax return.