TIEAs is signalling a new era of international co-operation and highlighting offshore avoidance arrangements. Australia has signed 27 tax information exchange agreements to date with more being negotiated.
By the end of this financial year, the number of ATO auditors working on cash economy cases will have almost doubled and more than 200,000 businesses would have been audited or reviewed. The main issue that is uncovered during these audits continues to be inadequate record keeping practices.
The ATO has identified employers in various industries that may not be paying super to their eligible employees or contractors. It is important that employers understand that they need to pay the compulsory 9% super guarantee contribution s for contractors they pay under a contract that is wholly or principally for the contractor's labour even if the contractor quotes their Australian business number.
The Government has just announced an increase to the Medicare Levy threshold to help pay for the flood recovery process. Applying from the 2011/2012 income year, the flood levy of 0.5% will apply to all taxpayers with a taxable income of $50,000 or more and 1% for all those with an income above $100,000.