The ATO should consider reviewing the usefulness and relevancy of its advice and guidance in respect of schemes to provide certain benefits (section 45B of the ITAA 1936) and update it as required.
That a materiality threshold should be included in determining whether or not PAYG income tax is required to be paid quarterly so that businesses with a very low income tax liability are not required to pay quarterly installments. What should this be?
The current pay as you go (PAYG) instalment calculations represent a substantial compliance burden. Simplify the various methods to calculate PAYG instalments by, for instance, basing them off accounting profit figures.
CPA Australia is of the view that it would be appropriate for a new type of entity be introduced into our tax regime that would have some of the features similar to that of a S-Corp, such as limited liability and streaming/ flow through of income to beneficiaries, but importantly it would also need the additional feature... more »
Given the tax-preferred status of superannuation, it has become the preferred savings vehicle for most Australians.
This is beneficial for retirement savings, but does little to recognise the necessity for individuals to save income
outside of super to afford major capital purchases during their working... more »
BENEFITS: Owners will be encouraged to show all income as this will improve the bottom line for things like: value of business, getting loans, business more salable.
Reduce the "Black economy".
They will be more likely to employ more staff therefore... more »
However, there has been considerable public debate in recent times about the quantum, distribution and equity of the tax... more »