Among the Instant Asset Write-Off increase and some extra money for export spending, the Government threw in a little surprise with this year’s pre-election budget…
…changes to ABNs.
Over the past few years, the Government has been cracking down on the black economy.
Stamping out cash payments.
You name it.
These ABN changes are just the latest initiative.
In fact, they’re just one of a couple of changes to compliance and tax work in this year’s budget. The other? Changes to skilled migration.
Here’s what you need to know.
Right now, anyone with an ABN can keep their number even if they aren’t up to date with their tax obligations.
Today, the Federal Government said: not anymore.
From 2021, anyone with an ABN and a tax obligation would need to file their tax return.
If you’re paying your taxes? There’s no need to worry. But there’s another part to this change…
From 2022, any business with an ABN would need to confirm and update their registered details associated with that ABN on an annual basis.
The ATO is concerned about businesses getting away with dodgy tax activities, so this new regulation is just another way they’re cracking the whip.
Of course, it all depends on how the changes are implemented. But in general, stamping out dodgy activity is a good idea.
This isn’t the only compliance shakeup the Government announced this year, though.
The Government is getting rid of 120,000 skilled migration places over the next four years.
If you’re a business in an industry that depends on offshore talent, then this may hit you hard. In response, the Government is creating two new visas for regional workers.
A good way to get people into regional areas? Sure. But there are plenty of industries, like tech, that depend on talent from overseas. If you’re in that sector, these changes may frustrate you.
The budget’s tax cuts will do some good in boosting our economy. And when business does well, the economy does well.
Read more of MYOB’s Federal Budget coverage here.