It is (again) time to pay (or vary) your quarterly PAYG Instalment. A lot of us have received the “pink form” in early July or have received a notification from MyGov that their quarterly PAYG Instalment is available on MyGov.
Some of us would ask:
What is PAYG Instalment, why do I need to pay it?
How did the ATO work out the amount?
Why this quarter’s instalment is much higher than others?
Can I “dial it down” a bit?
Let’s have a look at the What, Hows and Whys.
Have you heard about the introduction of Single Touch Payroll (STP) which is being advertised as one of the biggest changes for small businesses since the introduction of GST?
We all know that the ATO has the power to request information from third parties to verify information declared in our tax returns.
Some examples are where employers are required to submit their PAYG Summaries, banks are required to advise the ATO of interest earned in bank accounts, health insurers are required to confirm with the ATO the insurance covers and premiums paid for each taxpayer…
Now they have taken this to another level…
Remember in December 2018 when cryptocurrency was a hot topic, where everyone was trying to get in and have a share of the pie?
It is estimated that there are between 500,000 to one million Australians that have invested in cryptocurrency. Because of this, it has been on the ATO’s radar as it is seen to be used to move funds to the black economy, hide money offshore, and is sometimes linked with risks with unexplained wealth and undeclared taxable capital gains.
Recently the ATO announced that they are extending their data-matching program to include Cryptocurrencies.
How do they do that?
They require cryptocurrency designated service providers (DSPs) to provide reports to the ATO on an ongoing basis. The data includes the following:
How will that impact me?
If you have been declaring your cryptocurrency trading/investments in your tax returns – nothing will happen.
If you have been trading/investing in cryptocurrency, especially where you have sold/converted between different cryptocurrencies, you may be contacted by the ATO as you may have omitted declaring these in your tax return. You will be given opportunity to verify the information collected before any compliance action is undertaken.
What do I do now, if I have omitted transactions in my tax return?
You can voluntarily notify the ATO by amending your tax return to include the omitted transaction, the ATO will then prepare an amended assessment where you will be required to pay back the extra tax liability (or receive extra tax refund as a result). If you are having trouble preparing an amendment, Aston is here to help.
What is this?
Payroll tax is a tax assessed based on wages paid or payable an employer to its employees. It is a state tax –each state and territory has their own legislation with varying rates and thresholds. It is also a self-assessed tax, which means that it is the employer’s responsibility to ensure these obligations are met.
Below are some of the basics of payroll tax that every business owner should be aware of.
From time to time we get questions from clients where they ask if they should have private health insurance. While it is a very personal decision, sometimes it may make a difference to your tax position when it comes to preparing your tax return.
Let’s dive into some of the common questions asked!
