Businesses should start reviewing whether their accounting systems are keeping track of all revenue and expenses, together with any private use of business assets.
Planning ahead can save significant tax penalties, which start at 25 per cent of the unpaid tax to as high as 75 per cent.
There are a few key areas business owners should focus on.
– Go through each employee and check whether contractors are actually employees, as the ATO has flagged this as an issue they will be cracking down on.
– Look at whether any new business equipment needs to be bought in order to take advantage of the new $6,500 instant write off.
– Review quarterly PAYG instalments. If profit is down considerably from last year businesses may wish to reduce their instalments.
– Businesses may also wish to review personal loan agreements and trust deeds to make sure they comply with the law and that company distributions to owners are properly treated for tax purposes.
After COVID 19’s impact on the world, an influx of employees who had lost their jobs fell into the job market. Many of these came from companies that couldn’t afford to continue their employment. As a result, many individuals had to seek alternative employment, or draw from their super. Some individuals took on multiple jobs to pay bills, and others drew from the super that they had accumulated in the government’s early release scheme specifically for coronavirus related income loss.
Super is held by superannuation funds, and accumulates as a result of how much super an employer pays to the employees’ funds. Many Australians may find that they actually possess multiple super accounts as a result of having “lost” their super accounts during changeovers. It can also happen as a result of changing names, moving addresses, living overseas or changing jobs.
Australians can use the ATO’s online tools to:
View details of all of their super accounts, including lost or unclaimed amounts
Consolidate eligible multiple accounts (including any super held by the ATO)
Withdraw your super held by the ATO when certain conditions are met.
As superannuation funds often have fees associated with their upkeep, as well as insurances that may be tied into it (such as life, total and permanent disability and income protection), it’s important to consult with providers before accounts are consolidated.
