So whats being said this month around the ATO?

Here are some topics to keep an eye on

• Certain businesses required to report taxable payments made to contractors in the building & construction industry - from July 1, 2012
• For small business tax payers;
  • an initial deduction of $5000 for motor vehicles purchased after July 1, 2012
  • amendments to increase the small business instant asset write off to $6500
  • abolish the entrepreneurs tax offset
• Living Away From Home Allowance - having the LAFHA allowance taxed in the hands of the employees not the employers
• Abolition of upper age limit for making employee SG contributions
• Proportion of the low income tax offset delivered through salaries and wages increased from 50% to 70%
• Private health insurance rebate and the introduction of the 3 tier means testing for the offset
• Increases in the rate of SG (superannuation guarantee) contributions ? From?
• Restructuting the margin scheme provisions
• Director penalty notices (DPNs) considered to be given on the date the commissioner sent it by post - watch out for these
• Hire purchase agreements entered into after July 1, 2012 will be fully taxable, no more apporionment

The above are just items of interest, please consult us for specific advice.

Have you checked to see if your numbers are in line with the ATOs benchmarks? Did you know the ATO is comparing your figures to other business in your industry?

Benchmarks are key financial ratios that can help you compare your business performance against similar businesses in your industry – some key performance benchmark ratios the ATO are focussing on are:

1.        Cost of goods sold to turnover

2.        Cost of materials to turnover

3.        Labour to turnover

4.        Rent to turnover

5.        Motor vehicle expenses to turnover

If you need help or would like to know how your business is travelling in relation to these benchmarks then call us on 02 96 999 171 and check out the link from the ATOs website