As per the newly announced package by the Government on 23 March 2022, new measures to provide cash flow support and slash red tape has been introduced for millions of small and medium sized businesses.
For proper progress of the package, consultation with the community, tax practitioners and digital service providers will be done. The goal is to finalise the policy scope, design and specification with the right consultation to be held shortly.
Treasury and the ATO have decided to consult on the following measures to automate tax administration:
- Aligning instalment payments with financial performance
- Improved cash flows through an improved PAYG instalment system
- Smarter reporting of taxable payments
- Digitalising trust income reporting
The measures are proposed to apply from 1 January 2024, subject to the completion of consultation and advice from software providers. It also depends on their capability to deliver an improved PAYG instalment system for aligning instalment payments with financial performance and cash flows. For digitalising trust income reporting, the proposed date is 1 July 2024.
Lowering Tax Instalments For Income Year 2022–23
When it comes to pay-as-you-go instalments and GST instalments, the Government will set the GDP uplift rate to two per cent for the 2022–23 income year that applies to both instalments. After receiving the royal assent, this measure will apply to instalments due.
Not only this, the Government has decided to facilitate the pre-filling of payroll tax returns through sharing of single touch payroll data with State and Territory Governments.
Aligning The Excise And Other Reporting Requirements
To ensure the ease of doing business for manufacturers, importers and distributors in the alcohol and fuel sectors, the Government is lowering the costs of business for those with an annual turnover of less than $50 million.
To know more about the Government initiatives for cash flow support & red tape reduction to help small businesses, feel free to talk to our tax accountants at KPG Taxation.