Insights From MCA

The ATO are looking to ensure that people running a professional service business (such as accountants, lawyers, architects, etc) are not using business structures to avoid tax.

The problem is that they are going far beyond this and trying to force people to pay more tax than the Law requires them to.

The 2025 federal budget has been released, projecting deficits as far as the eye can see and only small tax breaks for ordinary Australians. To try and keep their promise of cheaper electricity bills, the Government will give households a quarterly payment, and student loan holders will get a little windfall. Overall, the budget spends more and doesn’t really provide Australian’s any real relief, which is disappointing.

From 1 April 2025, the ATO will be moving small businesses with a “poor compliance history” to monthly BAS’s. It’s the first time in 25 years that the ATO will enforce this rule, which is another in the long line of things that the ATO is clamping down on.