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GST focus remains, while community tip-offs increase
Fraudulent claims for GST refunds continue to be a major focus for the ATO, with several new pilot programs announced to help small businesses with GST reporting.
Here’s a roundup of the latest tax news.
New PAYG adjustment factor
Pay As You Go (PAYG) instalments – whether you pay quarterly or twice-yearly - has been increased to 6 per cent for 2024-2025 to reflect the latest GDP increase.
The change in the adjustment factor does not affect taxpayers who work out their own instalments or pay annually.
PAYG instalment amounts can be varied through the ATO’s Online services for business if you believe your current instalment amount will be more or less than your expected tax liability for the year.
Pilot programs to protect GST system
The ATO will be running a number of pilot programs during 2025 that aim to improve the digital tax experience for small businesses.
The pilot programs will encourage more frequent payment and reporting by small businesses and try to reduce complexity by embedding the tax rules and logic into small business software.
The ATO also hopes to empower small businesses by providing more information to help them get their GST right from the start, providing them with more time to focus on their business, rather than their tax obligations.
Community tip-offs increasing
The community appears increasingly willing to report tax cheats. The ATO received more than 47,000 tip-offs during 2023-24, with around 90 per cent deemed suitable for further investigation.
Building and construction, cafes and restaurants, and hairdressing and beauty services topped the list of industries reported.
Common tip-offs include taxpayers not declaring income, demanding cash from customers, paying workers in cash to avoid paying tax and super, not reporting sales, and where someone’s lifestyle did not appear to match their income.
Obligations for festive season employees
Hiring new employees to help out during the festive season brings with it the same tax and super obligations as for regular employees.
The ATO is reminding employers to ensure they withhold the right amount of tax from any payments made and also to pay all eligible employees’ super funds the correct amount of Super Guarantee to avoid paying the Super Guarantee Charge.
Employers without an approved exemption, deferral or concession must lodge the necessary information for new employees through the Single Touch Payroll system from their first payday.
GST fraudster imprisoned
Stamping out GST fraud continues to be a priority for the ATO, with a Victorian woman sentenced to four years imprisonment after claiming nearly $600,000 in GST refunds from 27 fraudulent business activity statements.
She is also being pursued for the amount she fraudulently obtained by submitting the multiple false claims for a fake cleaning business.
The case is part of the ongoing ATO-led Operation Protego, which was set up in response to numerous cases of attempted GST fraud. So far 104 people have been arrested and 59 convicted.
Eligibility for small business litigation funding
If you have a dispute with the ATO being heard by the Administrative Review Tribunal, you may be eligible for litigation funding to cover “reasonable” legal expenses.
To qualify, you must be a small business (sole trader, partnership, company or trust) operating a business for all or part of the relevant income year and have a turnover under $10 million.
Funding is available only if the matter does not involve a tax avoidance scheme, fraud or cash economy issues. You must not have a history of failing to lodge tax returns.
Updating your ABN details
The ATO is reminding taxpayers holding an Australian Business Number (ABN) they need to regularly ensure their current contact details are correct so they don’t miss out on important help, information, or support like financial grants.
Check both your physical business address and postal address are listed on the Australian Business Register, together with your authorised contacts, contact details and business activities.
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