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Australia Confirms Tax Changes To Cut Red Tape

by Mary Swire, Tax-News.com, Hong Kong

25 June 2014


The Australian Government has said that it will reduce taxpayers' compliance costs by about AUD56m (USD52.7m) a year by making changes to the way tax obligations are met and reported.

The proposed administrative reforms to pay-as-you-go (PAYG) installment thresholds are expected to benefit an estimated 372,500 small businesses.

The Government is to increase the business or investment income threshold from AUD2,000 (USD1,880) to AUD4,000, and the balance of assessment threshold from AUD500 to AUD1,000. The notional tax threshold will rise from AUD250 to AUD500, and the Government will scrap the requirement for goods and services tax (GST)-registered entities to remain in the system even if they have a zero installment rate.

Under the changes, if taxpayers no longer meet the PAYG installment thresholds, they will be automatically exited from PAYG installments. The Australian Taxation Office (ATO) will write to each business and individual to withdraw their installment rate.

If taxpayers still wish to pay installments towards their end of year tax liability, they may voluntarily re-enter PAYG installments by contacting the ATO.

TAGS: compliance | tax | investment | small business | business | tax compliance | revenue guidance | goods and services tax (GST) | Australia | tax thresholds | tax authority | tax reform | services | Tax

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