17th August, 2015
The Australian Taxation Office (ATO) is focussing on contractors in the building industry, as it seeks to recoup unpaid GST and undeclared income.
The cash economy has always been on the Tax Office radar, but now under the new reporting system they introduced in 2013, building companies must report on all payments made to contractors, and the ATO is hoping to catch more contractors in their revenue net.
Already the ATO has hit more than 250,000 contractors with more than $2.3 billion in tax bills for avoiding their income tax and GST obligations. Tradesmen be warned! While keeping up with business paperwork and tax obligations leaves less time for fishing, the Tax Office is also going fishing and they want to catch you in their net!
Now is the time to catch up with your bookwork and free yourself of the worry and headache if the ATO comes knocking on your door. Get that pile of receipts, invoices and records into an accounting software package, and you can then breathe easy and have time to visit your favourite fishing spot.
Use an accounting package like MYOB to ensure your accounting records are accurate and all your lodgement requirements are up to date. Don’t have time? Then hire a bookkeeper to help you.
There are many advantages in using accounting software:
With the Taxation Office focusing on tradesmen and matching data like customer payments, GST and income, you should seriously consider being proactive and implementing an accounting software package to help you meet your tax obligations.