Home News December 2019 Tax Alert

December 2019 Tax Alert

Here’s a roundup of some of the latest tax developments.

Inactive ABNs will be cancelled

Inactive Australian Business Numbers (ABNs) are an increasing area of interest for the ATO. If the tax man believes your business is no longer carrying on an enterprise, you face the risk it could decide to cancel your ABN.

To determine if an ABN is still being used, the ATO is checking the ABN holder’s tax return, whether their compliance and lodgement documents are up-to-date and a range of third party information.

If your ABN is mistakenly cancelled, you can reapply for the same ABN if your business structure remains the same. But if the structure is different – such as a sole trader now operating as a company – you will receive a different ABN.

ATO tip-offs on the rise

Small businesses in the café and restaurant industry are more likely to be subject to a tip-off and subsequent investigation by a specialist team, according to the ATO’s Tax Integrity Centre (TIC).

There are also high volumes of tip-offs about black economy behaviour in the hairdressing and beauty, building and construction, and cleaning industries.

The TIC is receiving 230 tip-offs a day about black economy activities by small businesses such as undeclared income, paying workers cash in hand and not reporting sales.

Tax man focussing on SG compliance

With the tax man currently checking SG contribution payments for around 400,000 employers for the 2018-19 financial year, small businesses will need to stay on top of their obligations in this area.

The ATO is now “heavily focused on reducing the incidence of non payment of SG” courtesy of new Single Touch Payroll information, according to deputy commissioner, James O’Halloran.

With an “unprecedented level of ‘visibility’ of super information at the account and transaction level”, the tax man plans to increase checks of SG payments and follow up employers not paying on time.


Give us a call to find out how these changes may affect your business, 4662 3722.

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