As you probably know, since 2012 the government has denied a deduction for superannuation payments that have not been paid on time.
The ATO have now extended the non-deductibility criteria to cover the payments to workers (both employees and contractors) that do not comply with the regulations.
This impacts your business in two ways:
- Brings forward the tax planning decisions about end-year directors fees, bonuses, commissions, and payments of super obligations.
- Causes you to have additional tax payable if you make an incorrect distinction between contractors and employees, or make non-compliant payments. Non-compliant payments may include any payments you make where you haven’t withheld or reported the PAYG tax.
It is, therefore, more critical than ever to arrange an appointment with your accountant as soon as possible, in order to:
- Resolve any issues you may have regarding the status of your workers
- Review your payment processing systems to ensure they are compliant
- See how these changes may impact your tax planning for 2019, before its too late to do anything.
If you have any questions regarding the above, please do not hesitate to get in touch with our team.