The ATO has recently made a change to its Super Fund Look Up page policies which could have a significant sting for SMSFs. From 1 October 2019 an SMSF will have its registration details removed from the Super Fund Look Up site if it has an annual tax return outstanding with the ATO for more than 2 weeks.
The annual Xerocon conference was recently held up in Brisbane and there were some big announcements made. Many of these related to software updates and new applications being developed but one that is very exciting for small businesses is a new initiative which has been entered into by Xero and the Australian Federal Government.
Each year the ATO identifies areas of concern which it will focus on in the upcoming year. For the 2019 tax year, the ATO highlighted personal tax returns and incorrect work related expense claims as an area which was to be scrutinised. According to recent data released, these warnings seem to have worked and have impacted the personal tax returns lodged. According to a recent survey, half of the taxpayers interviewed had left at least one claim they had previously made in their 2019 tax return.
The ATO has released surprising figures indicating that its research indicates that the biggest tax gap – that is the tax reported by this group compared to the tax that is expected – exists for small business.
With interest rates at all-time lows, many people have been frustrated by their inability to secure new lending due to the harsh lending criteria. After the Royal Commission into the banks, there was seen to be a tightening of borrowing conditions and many borrowers found themselves unable to satisfy all the new requirements.
Business owners are often very wary of their tax debts and need to get their lodgements in on time. However they are sometimes surprised and unaware that their employee super commitments are arguably more important to get done.