Small businesses are one of the biggest contributors to the national tax debt, according to the ATO, and now they’re cracking down to recoup the $11.9 billion owed. Regular tax collection and penalties for late payment are ramping up from January 1, 2023. So what do you need to do to stay on the right side of the tax fence?

Be aware of the payments that need to be on time every time. From 1 January, late-penalties will apply to:

• Activity statements
• Tax returns
• FBT returns
• PAYG withholding annual reports
• Single Touch Payroll reports
• Annual GST returns and information reports
• Taxable payment annual reports.

Late payments will apply to each item up to a maximum of five penalty units, and will compound for every 28-day period that their tax return or statement is overdue.

Seek the right advice now and set up a review and submission schedule with your accountant. It is critical that small businesses stay on top of tax obligations and if thi is not your bag, ring in someone who know it like the back of their hand.

Flag any concerns as early as possible. Your accountant can support you to liaise with the ATO and even apply for a penalty remission in extenuating circumstances. Your accountant will also help you to find efficiencies elsewhere in your business to help you meet your obligations, including and perhaps especially restructuring.

If you feel any level of concern over meeting your tax obligations, please book a meeting with us today by contacting mail@adviceco.com.au