In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
The holiday season is here
The Holiday Season has arrived and we take this opportunity to wish you a safe and happy festive season and all the best for the coming year.
Please note that our offices will be closed for a short break from 5pm Friday 21 December and will re-open at 9am Monday 7 January.
If you need assistance before the break, please get in touch.
Removal of deductibility of non-compliant payments
Treasury Laws Amendment (Black Economy Taskforce Measures No. 2) Bill 2018 has received Royal Assent and will come into effect on 1 July 2019.
This Bill makes amendments to the tax legislation to deny tax deductions for payments made to workers (employees & contractors) where the PAYG withholding and reporting obligations have not been complied with.
- Of salary, wages, commissions, bonuses or allowances to an employee;
- Of directors’ fees;
- To a religious practitioner;
- Under a labour hire arrangement; and
- For a supply of services where the contractor has not provided you with their ABN
Will only be deductible where the PAYG withholding obligations have been met. Ie an amount of PAYG has been withheld from the payment (where required) and that payment has been reported to the ATO.
Whilst this measure is aimed at those businesses operating in the black economy, it is a good reminder to all businesses to check that they are meeting their PAYG withholding obligations.
If you need assistance to understand this measure and your businesses PAYG withholding obligations, please get in touch.
Melbourne hospitality hotspots targeted by FWO
The Fair Work Ombudsman has targeted restaurants and cafes in the Degraves Street and Hardware Lane precincts in Melbourne with unannounced workplace audits.
According to the FWO, intelligence has been received indicating potential compliance breaches in the two precincts and at least 40 businesses face audits.
This is yet another firm reminder that the FWO has the hospitality industry firmly in its sights.
Businesses operating in the industry are encouraged to take a proactive approach to ensure that they are fully compliant with their obligations and that their record keeping is in order.
If you need assistance to understand your employer obligations, please get in touch.
Mid-Year Economic & Fiscal Outlook
The Federal Government has released the MYEFO forecasting a reduction in the anticipated deficit for 2018/19 to $5.2 billion and a budget surplus of $4.1 billion in 2019/20.
According to the MYEFO, Australia’s economy continues to perform well with real GDP expected to grow by 2 ¾% in 2018/19 then increasing to 3% in 2019/20.
For more information on the MYEFO, refer to the official MYEFO site.
Change to GST on feminine hygiene products
From 1 January 2019 GST will be removed from most feminine hygiene products.
Businesses selling these products are reminded to update their systems to reflect the removal of GST ahead of the start date in the new year.
More information on the changes can be found on the ATO website. The detail can also be viewed in the A New Tax System (Goods and Services Tax) (GST–free Health Goods) Determination 2018.
If you need assistance to get ready for 1 January, please get in touch.