On-line real time tax time? Big Brother WILL be watching you!
Online, real-time tax time? Big Brother WILL be watching you!
In the attached article is a rundown of the speech given by the ATO commissioner Chris Jordan at the Xerocon 2022 conference in Sydney this week.
The ATO is looking to have a fully digitised, online and REAL TIME payment of tax happening.
And they want this to happen by 2030.
What does this mean to you in business?
It could mean that the ATO will be looking to receive tax payments like GST and PAYG when the transactions occur – online, in real-time.
I have seen Stripe payments reported for sole traders on the ATO prefill reports as a separate source of income, so the reality is that they are well on the way towards having all the data on hand in real-time. With STP and online payroll systems, it is currently a ‘one-button press’ for regular payroll reporting.
The next phase will clearly be for automatic payroll reporting when the pay run has been finalised. Then perhaps the following stage will be an automatic drawdown of the PAYG and superannuation payments that are due, as each pay occurs.
Or as an ‘automatic drawdown’ on a set date each month, without any paperwork being prepared and lodged with payments following up later.
What do you need to do as a business owner to prepare for this?
Talk to your accountant – or get one if you don’t have one already.
And get your systems in place to ensure you know how your business is going, how strong your cash flow is over the months ahead, and make sure your plans and projections are in place.
Ensure that your payment and receivable systems are working properly and that your invoices are being paid regularly. Are you managing this yourself? Do you need support, and perhaps professional management of this?
Work with your accountant and bank to get the right support – overdrafts, credit limits etc. to manage your cash flow requirements.
For accountants, the focus will be far less on ‘churn and turn’ preparation of annual tax returns, where they provide a low cost, quick process, and high volume (and probably no advice) service. Instead, accountants will need to be focused on helping businesses manage their operations, grow their businesses, and adhere to their financial obligations.
Your accountant should be your business partner, that can help you:
Go Beyond The Numbers.
To discuss this, and to look at how we can help you grow your business contact us at 0409788399 or at info@fiscalartisans.com.au
