Running a small business isn’t easy.
The long hours staying on top of the paper work is difficult enough, let alone keeping up with important tax changes.
So UBT has put together one stop shop with the important changes that could affect your small business in 2020.
- AUSkey will no longer be available after 31 March 2020
Auskey was a way to send business information to the government online.
The ATO has announced that the Auskey system, including the “Manage ABN Connections” service, will no longer be available after 31 March 2020 – mostly due to the limitations and changes in technology.
If you are a business who uses AUSkey, you will have until 31 March 2020 to switch to myGovID before AUSkey is retired.
You’ll need to set up your myGovID and link your ABN using RAM.
For more information about Auskey’s replacement visit https://www.abr.gov.au/auskey/your-auskey-replacement.
- Expansion of taxable payment reporting systems (TPRS)
The Taxation Payment Reporting System (TPRS) lets the ATO know about payments that are made to contractors for providing services.
The taxable payment reporting system has now been expanded to include businesses that:
- provide road freight, IT, security, investigation, or surveillance services, and
- pay contractors (including subcontractors, consultants and independent contractors) to provide those services on their behalf.
Importantly, the requirements also apply to businesses who pay contractors to provide those services on their behalf.
The deadline to lodge the annual return is 28 August 2020.
- Use of e-invoicing
According to the ATO, Australian small businesses are owed $26 billion in unpaid invoices and 20 percent of late payments are due to invoices being sent incorrectly following manual data entry.
As businesses become more technologically savvy, e-invoicing is becoming more and more common.
For SME’s, it means more invoices can be received and paid on time, and less manual intervention and time spent on paperwork.
The ATO estimates it will save the Australian economy $28 billion in ten years.
UBT advisers are always on hand to help if you need more information.