Posted on February 21, 2020
Our continuous professional development is a key focus of the team and management at HCG.
As part of our training program we subscribe to the NTAA Tax on The Couch which is a lively review of tax changes during the month.
Here is what we learned this month:
Small Business Benchmark
The ATO has recently updated its small business benchmarks. The benchmarks are designed to:
help business owners to work out how their business performance compares to other businesses in the same industry;
help business owners to estimate their turnover based on the labour and materials used and check whether the records accurately reflect their income;
identify businesses that may be competing unfairly by avoiding their tax obligations by not reporting some or all of their income. If these businesses are audited and there is not enough evidence to support their returns, benchmarks can be used to determine income that hasn’t been reported.
As tax agents, we use these benchmarks as a tool to help you improve your business bottom line and check your business health before lodging your activity statements or tax return.
SuperStream Contribution Standards
From 1 July 2015, small employers with 19 or fewer employees will need to start making contributions using SuperStream. Full compliance will be in force from 1 July 2016. Employers can meet Super Stream by either using a software solution that conforms to super stream or a service provider who can arrange SuperStream compliance on their behalf.
Employee with SMSF needs to provide Fund’s ABN, Bank Account Details, Electronic Service Address and Employee TFN to their employer to meet the SuperStream requirement. If the information is not provided, the employee will be deemed as not having provided sufficient details for the choice fund to be accepted and the employer may redirect their contributions to the employer’s default fund.
The failure to comply may result in an administrative penalty imposed on the trustee of an SMSF or an employer, and ATO is also able to give trustees and employer a direction requiring them to address a contravention of the standard or take action to avoid contravening the standard.
You can find more details by visiting the website below or wait for our detailed letter with instructions:
Wait for our next month’s Tax on The Couch series update!