We are glad to share our September edition of Monthly update. Below are ATO and other major updates up to August 2019.

ATO to start contacting small employers re STP

The ATO strongly encourages all employers with 19 employees or less to get on board and start reporting through Single Touch Payroll (STP) from 1 July 2019. The ATO understands the move to digital reporting may be a big change for some small employers. They can start reporting any time from 1 July to 30 September 2019 and still be reported on time. There is also help and support for employers that might need more time beyond that.

TBAR spreadsheet lodgments not accepted from 31 October

The ATO will decommission the spreadsheet version of the transfer balance account report (TBAR) form on 31 October 2019 since the agents are allowed for online TBAR lodgement since March 2019.
While the spreadsheet solution allowed by ATO provided an electronic option for some agents when they commenced their transfer balance account reporting, it is linked to a higher error rate associated with reverse workflow for agents and slower processing times.
ATO will not process spreadsheet TBAR forms that are received after midnight of 31 October 2019 and the agents will be redirected to Online services.

Taxable Payments Reporting System

The legislative instrument (Taxable Payments Reporting System – Reporting Exemptions for Certain Entities Determination 2019) exempts businesses engaged in the services of road freight, security, investigation, surveillance or IT from lodging a TPAR (Taxable Payments Annual Report), provided the considerations received for those services doesn’t exceed 10% of the annual GST turnover. If these businesses breach the 10% annual GST turnover limit, they are required to lodge a TPAR and the very first report is due by 28th August 2020.

Time Extension to lodge TPAR

In addition to the above-discussed businesses, the businesses engaged in the services of courier & cleaning industries also have an extended due date of 28th August 2020 to lodge their first TPAR.

Organizations losing charity status

The below-mentioned organizations’ charity status has been removed by ‘The Australian Charities & Not – for – Profits Commission (The ACNC)’ recently following an investigation into their activities & operations:
a. Kaizen Synergy College
b. White Coats Charity Incorporated
c. The Trustee for Storybook Angels for Disables Animals
d. Australian Community & Health Foundation Limited
e. Beyond Community & Health Inc.
Following this, the ACNC has also warned the registered entities to submit their annual report promptly else face the risk of losing the charitable organization status.

Implications of non – compliance to PAYG Withholding Tax obligations
The payments made to workers where the PAYG Withholding Tax obligations are not met are no longer tax-deductible expenses. This rule comes into place from the tax returns to be lodged for the period ending 30th June 2020.
If any amount has been withheld incorrectly or reported incorrectly, the mistake can be rectified by lodging a ‘Voluntary Disclosure in the Approved Form’ at the earliest so that the right to the claim it as a tax-deductible expense is not lost.

Waiver of Tax Invoice requirement

The ‘Waiver of Tax Invoice Requirement (Corporate Card Statements) Determination 2019’ allows corporate cardholders to claim input tax credits without holding a tax invoice in certain circumstances. Currently, this is only a draft instrument.

Written by
Sumithra Varadarajan
Sai Kalyanaraman