Ever wondered if you're paying the right amount of tax? Or if you're playing your part in supporting the services we all use and rely on? It's a tricky question that often sparks some unease. After all, tax isn't always the most straightforward topic. Tax regulations can sometimes feel like a labyrinth - complex, constantly changing, and full of potential pitfalls.
So, whether you're a small business owner, an individual taxpayer, or just interested in the ins and outs of taxes, read on.
We're here to help you navigate the latest tax changes and ensure you're on the right track.
The ATO is taking a tougher stance on tax avoidance
In light of the recent Federal Budget announcement and released papers, it's clear that the government is stepping up its fight against tax evasion. They've given the Australian Taxation Office (ATO) more ability and provisions to identify and handle those who are skirting their tax responsibilities. The aim? To protect the Budget and ensure everyone pays their fair share of tax.
What are the tax changes you need to look out for?
As part of the strategy to ensure tax fairness, the government has introduced several key changes you need to know about. Keep reading to understand these changes and how they might impact your tax planning.
Broadening the tax laws on foreign transactions
Laws around tax schemes that primarily aim to reduce tax are about to get broader, particularly impacting those dealing with foreign persons and entities. The changes mean you can no longer structure your affairs to access lower foreign withholding rates or to lower your foreign taxes.
More time for small businesses to amend tax returns
Good news for small businesses. The government has doubled the timeframe to amend your tax returns from 2 to 4 years. But keep in mind that this also means the Tax Office has the same length of time to modify your returns if they conduct an audit.
In light of this change, keeping meticulous records and regularly reviewing your past returns is more crucial than ever. Consider seeking expert advice to ensure that your returns are accurate and compliant.
Increased funding for the GST compliance program
The government has also increased their funding of the GST compliance program. As much as $588 million has been provided to the ATO to extend their GST compliance program, intending to catch those doing the wrong thing.
Extending and expanding the Personal Income Tax Compliance Program
The government will also provide $89.6 million to the ATO and $1.2 million to Treasury to extend the Personal Income Tax Compliance Program for two years from 1 July 2025 and expand its scope from 1 July 2023.
Don't be caught unaware – get professional advice today
Worried that you may have inadvertently done the wrong thing with your taxes?