As a small business, keeping up with compliance and tax regulations is important. Whether the change be big or small, it could have a dramatically affect how you run your business.
We’ve compiled a list of some of the changes that may impact you and your business.
AUSkey will no longer be available after 31 March 2020
AUSkey will no longer the platform used for businesses to report information to the ATO. It will soon be replaced by myGovID and Relationship Authorisation Manager (RAM).
The ATO have stated that these new services will provide a simplified and secure means of accessing government online services.
You will need to link your myGovID with your ABN in RAM before you can start using this new process.
Single Touch Payroll
Single Touch Payroll (STP) has been rolling out since July 1, 2018. Depending on the size of your business, you may have been reporting through STP for quite some time now. For smaller businesses (with fewer than 20 employees) you should have been reporting through STP since July, 2019.
If you’re still unsure of your STP responsibilities and reporting requirements, let our accountants assist you. With the initial penalty-free time frames now coming to an end, businesses will face fines if they are not STP compliant. Penalties are calculated at $210 for each 28 days that the STP report(s) is/are outstanding.
Introduction of e-invoicing
According to the ATO, Australian small businesses are owed $26 billion in unpaid invoices. This is affecting the cash flow of thousands of businesses.
The federal government have made a commitment to pay electronically received invoices up to the value of $1million, within five days and are encouraging small businesses to make the change to e-invoicing.
Sending an e-invoice is approximately 70% cheaper than processing a paper invoice and is expected to save the Australian economy $28 billion over ten years.
Related: Strategem introduce online payments
Inflation of taxable payment annual reporting (TPAS)
Small businesses in certain industries are required to report information to the ATO based on payments they make to contractors.
The building and construction industries have been dealing with taxable payment annual reports for some time now, however the 2019/20 financial year has seen these reports extend to include road freight services, IT, security, investigation and surveillance services. It’s important for businesses to understand these changes, even if it’s only part of the services you offer, you may be required to lodge a TPAR.
The first TPAR is due 28 August 2020, so there is still time to get your head around the changes.
If you have any questions related to any of the mentioned changes please do not hesitate to get in contact with our Bendigo or Melbourne Accountants and Advisors. Our professional staff are here to provide assistance and answer all of your questions.
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Bendigo 03 5445 4777
Melbourne 03 8621 8100