March 2017 Tax Update

Hot off the press - in this month's update we cover the ATO's further crackdown on Superannuation Gurantee non-compliance and some great FREE face to face workshops run by the ATO for small business owners.

As always if you have any questions pick up the phone & give us a call

Best Regards

Adrian De Vito - CPA

FREE ATO workshops for small business in your area

click link below

ATO data regarding Super Guarantee non-compliance

The ATO has provided some information about Superannuation Guarantee (SG) non-compliance in its recent submission to a Senate inquiry into the impact of the non-payment of the Superannuation Guarantee.

In addition to marketing and education activities to re-enforce the need for employers to meet their SG obligations, the ATO conducts audits and reviews to ascertain SG non-compliance, with 70% of cases stemming from employee notifications (the remaining 30% of cases are actioned from ATO-initiated strategies).

On average, the ATO receives reports from employees which relate to approximately 15,000 employers each year, although the ATO finds that nearly 30% of these employers have in fact paid the required SG to their employee.

However, an SG shortfall is identified in the remaining 10,000 cases (this represents approximately 1% of the estimated 880,000 employers who make SG payments).

The top four industries from which reports are received by the ATO are from:

• Accommodation and Food Services;

• Construction;

• Manufacturing; and

• Retail Trade

Ride-sourcing is 'taxi travel'

In a recent case, the Federal Court has agreed with the ATO that 'ride-sourcing' (such as that provided using Uber) is 'taxi travel' within the meaning of the GST law.

The ATO has advised people who are taking up ride-sourcing to earn income sho keep records;

• have an Australian business number (ABN);

• register for GST, regardless of how much they earn, and pay GST on the full fare received from passengers for each trip they provide;

• lodge activity statements; and

• include income from ride-sourcing in their income tax returns.

Drivers are also entitled to claim income tax deductions and GST credits (for GST paid) on expenses apportioned to the ride-sourcing services they have supplied.

The ATO warns that they can match people who provide ride-sourcing through data-matching, and will continue to write to them to explain their tax obligations.

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should give Adrian & the team at Clear Accounting Solutions a call to independently verify your interpretation and the information’s applicability to your particular circumstances.

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