In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
Self Managed Superannuation Funds (SMSF) Continue to Grow
The latest statistics released by the ATO show that the population of SMSFs continues to grow with close to 600,000 in existence at 30 June 2017.
SMSFs now account for over 99% of all superannuation funds and hold 30% of Australia’s $2.3 trillion in superannuation assets.
Historically SMSF have appealed to those wanting to purchase property with their super and/or those wanting to take greater control.
If you are contemplating a SMSF, we encourage you to get in touch. We are now better placed than ever to help you decide if a SMSF is right for you.
Public Holiday Surcharges
Due to penalty rates, restaurants and cafes opening on public holidays can struggle to make sufficient profit to justify opening.
Rather than close for the day, many businesses in the hospitality industry are now opting to trade whilst applying a public holiday surcharge.
Hospitality businesses seeking to apply a public holiday surcharge must observe the correct protocol or face significant penalties.
Principally, this means including the words “a surcharge of [surcharge %] applies on [the specified day/days]” on the menu at least as prominently as the most prominent price on the menu.
With the Australian Day public holiday fast approaching, hospitality businesses should ensure that they are compliant.
For more information, refer to the ACCC’s guidance on displaying prices.
Small Business Superannuation Clearing House (SBSCH)
Many businesses use the SBSCH to pay their employee superannuation contributions in compliance with the Super Stream regime.
From 26 February 2018 the SBSCH will be joining ATO online services. This means that after 26 February, access to the SBSCH will be via the ATO Business Portal and MyGov.
Businesses should take steps now to ensure that they are set-up to continue using the SBSCH in it’s new home from 26 February.
Businesses wanting more information can attend an webinar to be run by the ATO on 8 February.
2022 Gaming Machine Entitlements
By now, Victorian pubs and clubs with gaming machines should have received their “Entitlement Offer Deed Poll”. This deed needs to be signed-off and the initial deposit paid by 28 February 2018.
Any operators who are yet to receive or action their deed should act without delay.
Further information on the process can be found on the Department of Justice & Regulation’s website.
Increasing International Tax Transparency
In recent times, the Government has continued to work with the OECD and others to improve international tax transparency to combat offshore tax avoidance.
The number of jurisdictions Australia shares information with is now extensive and rapidly growing.
For more information on Australia’s Automatic Exchange of Information (AEOI) regimes, please see the latest update published by the ATO in late December.
Now more than ever, taxpayers and businesses with offshore assets and international dealings need to ensure that their house is in order. If you need help to understand your Australian tax obligations, please get in touch.
ATO Disclosure of Tax Debts
Under proposed legislation, the ATO will be allowed to disclose tax debts of businesses to registered credit reporting bureaus. Those bureaus may then include that ATO debt in credit reports which are available for purchase by third parties (eg lenders).
Businesses that have effectively engaged with the ATO to manage their tax debts will not have their debt information disclosed.
The ATO is currently seeking feedback on their administrative approach to the disclosure of tax debt information. If you would like to have your say, you have until 9 February.
If you would like to find out more about the proposed measures, please refer to the Treasury website.
Ballarat Office Hours
Please note that our Ballarat office hours are changing from Monday the 29th of January.
The new office hours will be 9am to 5pm Monday to Friday.
56 Lydiard Street South, BALLARAT VIC 3350
1300 328 855
Suite 13, 33-35 Macedon Street, SUNBURY VIC 3429
03 9744 4522