It’s time to catch up on the latest accounting and tax news in October! Let’s find out what the ATO (Australian Taxation Office) has been up to this month.
Tips for staying on top of your debts
Having your own business can be challenging sometimes, especially when clients can’t pay you on time. This inevitably will influence your own debts.
What can you do to prevent unpaid debts and be proactive with your payments?
Here are a few great tips to help you keep your business on the right track.
1. Guides
The ATO has a lot of experience collaborating with small businesses and their owners. It’s why they’ve developed practical guides to help you stay on top of your debts.
These guides will teach you:
- how to reduce the risk of unpaid invoices
- what you can do when you haven’t been paid
- what to do when you’re in debt
2. The ATO app
The ATO app can give you a helping hand with your tax and supper affairs. It has useful tools that can make it easier for you to keep your business on track, including:
- payment plan estimator to work out an affordable and personalised payment plan
- business performance check tool to check your business’s financial health and compare it to others in your industry
- key dates to set important tax and super reminders and alerts
3. Business viability assessment tool
This tool will help you determine your business’ ability to pay outstanding debts and meet ongoing commitments to creditors.
Where’s your lodgment data?
If you’re eagerly waiting for your lodgment program performance summary, prepare for a long wait. The ATO recently announced its delay.
The setback was due to calculation changes, they now only count further returns not necessary (FRNN) advice lodged in the current year.
Tip: If you have a few FRNNs, they can negatively impact your lodgment performance summary.
Find out how the ATO calculates your lodgment performance here.
Claiming compensation from the ATO
After the ATO’s recent system outage, many people asked whether or not they were offering compensations since many tax agents might have suffered client relationship damages.
The answer is in the “Commonwealth Scheme for Compensation for Detriment caused by Defective Administration”, which is a Commonwealth scheme that deals specifically with these types of issues. It can provide compensation to practitioners or clients who’ve experienced disadvantage or loss due to the system outage.
If you want to claim a compensation from the ATO, submit an application proving that:
- A direct financial loss has been suffered
- The loss was caused by the ATO’s defective administration
- The party making the claim has taken reasonable steps to mitigate the damage
Attention! Before offering compensation under this scheme the ATO will investigate other options to offer you. Be prepared for a negotiation.
Thinking about applying for a compensation? Here’s all you need to know, directly from the ATO.
Online PSI (Personal Services Income) tool
The ATO released a PSI tool that can help you work through the application of the PSI provisions. You can use it for any company type, sole trader or trust.
Whether you pass or you fail their test, the PSI tool provides a summary of the tax implications for your business.
Have you tried the online PSI tool yet? Try it out, here.
You might also be interested in: September Tax And Accounting News: All You Need To Know
Want to know more about how these updates affect you?
One of our specialists here at Shuriken Consulting is ready to assist you with any questions you might have about the latest tax and accounting updates. Get in touch with us today:
