Budget 2018/19: Abolishing Super Exit Fees
The Coalition will look to prevent superannuation funds from charging exit fees. These fees discourage people from moving away from under performing funds because there is an unreasonable cost imposed in some cases. This will give everyday Australians greater choice in where their super is located. (Our thanks to CAANZ for the image from http://bit.ly/2I3fjah)
Budget 2018/19: Banning Large Cash Payments
The Coalition will ban “large” cash payments to businesses ($10k and above). Great in theory, but how do you prevent someone accepting cash when the very nature of cash is that it is almost impossible to trace? The jury is out on how effective this will be. (Our thanks to CAANZ for the image from […]
Budget 2018/19: Contractor Reporting Extended
The Coalition will expand the current “contractor reporting” requirements that apply to the construction and cleaning industries (and a few others) to more industries. Our guess is that eventually, all payments to contractors will need to be reported, across all businesses and industries. The short summary on why contractors are a problem for the Government […]
Budget 2018/19: Greater ATO Funding
The Coalition will provide the ATO an extra $450 mil to combat tax cheating. Greater ATO funding basically means more audits and compliance checks. The focus seems to be on:– Contractors that should be employees– High-wealth individuals– Data analytics and data matching– Greater educational activities (which the ATO can then use against you, i.e. “we […]
Budget 2018/19: New ABN Framework
The Coalition will look at our current ABN framework and re-design it if need be to better suit current tax laws and values. No doubt in the gun are contractors who are able to obtain an ABN even though they should be employees. There are a number of measures to combat contractors in this budget […]
Budget 2018/19: No Tax Deduction for Payments to Contractors (II)
The Coalition will look to deny tax deductions to businesses that make payments to contractors without an ABN. Basically if they aren’t paid as wages (and reported to the ATO), and not as a contractor with an ABN – don’t do it. We note that ATO is making it difficult (by design) for the basic […]