ATO to raise further funds from better data matching
The Government’s recent mini budget, released in late November, indicated the ATO is expected to raise a further $436 million over the next four years through better data matching.
The small business benchmarks were introduced by the Australian Tax Office (ATO) in 2009 in a bid to catch businesses with turnovers under $15 million not recording and paying tax on all transactions, especially cash transactions. There are now more than 100 benchmarks for businesses with different turnover ranges i.e., small/medium/large, which are on the ATO’s website.
Businesses reporting outside the benchmarks may be targeted by the ATO. At the initial stage, a letter notice may be sent to taxpayers or their registered tax agents requesting further details of their tax performance and additional information to assist in future compliance. For taxpayers identified as “high risk”, the ATO will send out a compliance letter or conduct a phone interview in order to provide taxpayers with an opportunity to review their information, correct their mistakes, or make a voluntary disclosure to the ATO.
If there is a reason your business is performing outside the benchmarks and your business records confirm this, generally the ATO will take no further action.
If you would like further information on business benchmarks and how they affect you, please contact us.
Do you pay a living-away-from-home allowance (LAFHA) to an employee who usually resides overseas? If so, read on...
The Australian Treasurer has confirmed changes to the Living Away from Home Allowance (LAFHA) to take effect from 1 July 2012. This reform mainly targets temporary residents holding a 457 visa as they were found as the major group exploiting the LAFHA tax concessions.
The new LAFHA requirements will be:
- Individuals claiming LAFHA need to demonstrate their actual expenditure on accommodation and food beyond a statutory amount – substantiation for its intended purposes
- Individuals claiming LAFHA need to maintain a home for their own use in Australia that they are living away from for work.
For example, if you have an employee with a home in Brisbane and you send them to Melbourne for work, you would be entitled to claim LAFHA for that employee. However, businesses with employees who are 457 visa holders on the basis they normally reside overseas will no longer be eligible to claim LAFHA for those employees.
Concessional treatment for short-term travel allowances and ‘fly-in fly-out’ workers in Australia will not be affected.
We will provide additional information regarding this once legislation has been drafted.
If you would like further information on how this may affect your business, please contact us.
Upcoming lodgement dates
21 Dec 2011
15 Jan 2012
Final date for lodgement and payment of November 2011 monthly activity statements
Due date for lodgement of income tax returns for companies, superannuation funds and trusts that were taxable medium to large business clients in the prior year and are not required to lodge earlier.
If you fail to lodge your 2011 return on time your income tax return for 2012 will be due by 31 October 2012.
21 Jan 2012
Final date for lodgement and payment for December 2011 monthly activity statements
Final date for lodgement and payment of Quarter 2 (October - December 2011) PAYG instalment activity statement for head companies of consolidated groups.
28 Jan 2012
Last day for superannuation guarantee contributions to be made to a superannuation provider for quarter 2 2011-12 (1 October - 31 December 2011).
If an employer does not make the minimum superannuation guarantee contributions for quarter 2 by this date, they must pay the SGC and lodge a SGC statement by 28 February 2012. The SGC is not tax deductible.
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