The Rubiix 2018-9 Budget Report: Tax Compliance & Integrity

Firm stance on tax and super debts
The Government will provide $133.7 million to the ATO to continue to deliver on a range of strategies that sustain both an increase in debt collections and an improvement in the timeliness of debt collections.

No tax deduction for non-compliant PAYG and contractor payments
Measures will be enacted to ensure that taxpayers will not be able to claim deductions for payments to their employees such as wages where they have not withheld any amount of PAYG from these payments, despite the PAYG withholding requirements applying. Similarly, the Government intends to remove deductions for payments made by businesses to contractors where the contractor does not provide an ABN and the business does not withhold any amount of PAYG (again despite the withholding requirements applying).

Black Economy: increase in ATO funding
The Government will provide $318.5 million over 4 years to implement additional strategies to combat the black economy.

Cash payments limit: payments made to businesses
The Government will introduce a limit of $10,000 for cash payments made to businesses for goods and services.

Reportable payments system extended: security providers, road freight transport and computer design
The Government will extend the taxable payments reporting system (TPRS) to the following industries:

  • security providers and investigation services;
  • road freight transport; and
  • computer system design and related services.

If you would like to discuss any of these points further and how they may affect you, please contact our office on 03 9603 0066.

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