The Federal Government and ATO have been focused for some time on reducing the financial impact of the black economy – those businesses who are continually late and overdue with their tax commitments.
A new government measure being introduced from 1 July 2019 is the latest step and may catch many business unaware. The new measure applies to business who tender for government projects valued at over $4 million. For those business, to be eligible to tender for such new jobs from 1 July 2019 they must provide and submit a satisfactory Statement of Tax record (STR) from the ATO.
A satisfactory STR will only be issued if the tenderer meets the following criteria: –
- Up to date with registration requirements
- Lodged at least 90% of all income tax returns, FBT returns and BAS for the entire corporate group over the last 4 years (or the life of the entity if it has been in existence for less than 4 years); and
- Does not have an outstanding tax debt with the ATO of $10,000 or more.
Although the STR application process will not take long (estimate to be 4 business days for the ATO to process), businesses who tender for government projects will need to be more proactive with their lodgements and work with their tax advisors to ensure they meet these new criteria or risk missing out of these projects.
If you have any queries or would like to more, please contact us.