November 2018
Fast-tracking tax cuts for small and medium businesses
The Government has fast-tracked the already legislated tax cuts to small and medium businesses by bringing them forward five years . Companies with an aggregated turnover of less than $50 million will have a tax rate of 25% in the 2022 income year (instead of the 2027 income year based on the previously legislated timeline).
Similarly, the increase in the tax discount to 16% for unincorporated entities will apply from the 2022 income year, rather than the 2027 income year.
Proposed expansion of Single Touch Payroll to smaller employers.
Single Touch Payroll ('STP') commenced on 1 July 2018 for approximately 73,000 employers who have 20 or more employees. There is currently legislation before Parliament to expand STP to all employers from 1 July 2019 and it is estimated that there will be more than 700,000 employers who will enter STP as a result.
Also in this month's update:
- Expansion of the Taxable Payments Reporting System (TPRS) to the cleaning and courier services industries from 1 July 2018.
- Ban on electronic sales suppression tools
- ATO warning on scammers impersonating tax agents
