Keep the ATO Happy and They Will Work with You Better
Whether you’re an individual, a new business or have been “in the game” for a long time, there is one government agency we all have to report to…the Australian Taxation Office (ATO). Now, for some this may seem daunting, especially when you’re taking the next step in your business and are required to lodge more than just your annual tax return.
Here at Advivo, we are constantly in communication with the ATO on a variety of matters. One big thing we have noticed is, that if you can keep the ATO happy they will work with you better when you need help. We have put a list together of our top three tips to assist in keeping the ATO happy!
1. Meet Lodgement Deadlines
Now, this may sound a little obvious but keeping up to date with your lodgement deadlines is very important for your record with the ATO. Even if you can’t pay your activity statements and tax returns on time, they must be lodged by the due date. By making your lodgement deadlines you will avoid a penalty for failing to lodge on time and it shows the ATO that you’re aware of your obligations and are doing your best to adhere to them.
You can find a list of the ATO key lodgement and payment dates – here. As always, we encourage our clients to contact us if you are ever unsure or need assistance.
2. Pay Your Debt On Time
If you are unable to make a payment on time it is imperative that you speak with the ATO. The ATO understands that paying your debt on time isn’t always possible, which is why they offer a variety of payment plans. These can be put in place with the ATO to pay off your debt and still be able to manage your cash flow. A payment plan calculator can be found on their website – here and arrangements can be put in place online or over the phone.
Avoiding the ATO will not make your debts disappear, instead, it may increase your debt and damage your record with them.
Having a discussion with your Advivo accountant is a good way to ensure that you are entering the best payment arrangement for your circumstances and that all future obligations can be met.
3. Pay Your Employees Superannuation On Time
As an employer, you are required to pay super for all eligible employees from the day they start with you. Payments are to be made a minimum four times a year, by the quarterly due dates. If super payments aren’t made on time you will be required to lodge a Superannuation Guarantee Charge (SGC) Statement and may need to pay the Super Guarantee Charge. The SGC can become quite costly if multiple payments are missed.
There has been a Superannuation Guarantee Amnesty proposed but it has yet to be enacted. If passed into law, the proposed amnesty will be a one-off opportunity for employers to self-correct past Super Guarantee (SG) non-compliance without penalty.
If you are unsure of your super payment requirements, please contact your Advivo accountant.