While the ATO knows most small businesses try to report correctly, it understands that mistakes can happen. ATO Deputy Commissioner, Will Day, advises:
“Establishing good habits, and knowing what support and resources are available, will give your small business its best chance of success.”
The ATO advises taxpayers that it is important to get the following ‘basics’ right:
- using digital tools and business software to help track and streamline processes to increase the efficiency of their business;
- keeping accurate and complete records, which will help taxpayers meet their tax and super obligations and make lodging easier; and
- getting the right advice from trusted resources such as their registered tax professional or the ATO’s website, which can help taxpayers navigate change and uncertainty at any stage of the business life cycle.
Taxpayers can refer to ‘Good business habits’ and ‘Supporting your small business’ on the ATO’s website for further assistance.
Deputy Commissioner Day wrapped up his business tips by stating: “It’s important to get it right, so that you can focus on your business and don’t end up with any unwelcome surprises, like being required to pay off a debt or to prove your claims through an audit.”
Ref: ATO website, Small Business Newsroom, 14 November 2024
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Super Clearing House end-of-year key dates
Taxpayers may need to take note of the ATO’s annual office shutdown dates that impact the Small Business Superannuation Clearing House (‘SBSCH’).
Set out below are the key dates tax agents and their clients need to be aware of in relation to the SBSCH:
- 5.30pm AEDT on 10 December 2024 — all super payments with instructions received after close of business on this date will be processed from 2 January 2025;
- 28 January 2025 — super guarantee quarterly payments are due.
The ATO’s office and contact centres will close at noon on Tuesday 24 December 2024 and re-open at 8am Thursday 2 January 2025, local time.
For the latest information about the SBSCH and the ATO’s Online system maintenance schedule, the ATO asks taxpayers to check ‘SBSCH system status’ on the ATO Superannuation Dashboard and/or ‘System maintenance’ (both accessible at QC 103376).
Ref: ATO website, Tax Professionals Newsroom, 15 November 2024
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Reporting for arts, music or cultural organisations
Non-charitable not-for-profit (‘NFP’) cultural organisations with an active Australian business number must lodge an ‘NFP self-review return’ by 31 March 2025 to notify the ATO of their eligibility to self-assess as income tax exempt.
Editor: Cultural societies, clubs and associations are established to encourage art, literature, and music and provide a range of valuable services like training, performing, judging, studying, displaying, and providing information about their topic area.
Taxpayers will need to look at the main purpose of their cultural organisation in determining whether it is eligible to self-assess as income tax-exempt, and ensure it focuses on the encouragement of art, literature or music, or is for musical purposes. To qualify as income tax-exempt, any other purpose must be incidental or secondary to the main purpose.
The main purpose of a cultural NFP could be:
- art, which includes performing arts such as drama and dance, as well as visual arts such as painting, architecture and sculpture;
- literature, which includes a wide range of written or printed works, such as works in different languages, on particular subjects or by particular authors; and/or
- music, which includes the performance of vocal or instrumental works, and covers various styles (for example, classical, jazz and liturgical).
In working out an NFP organisation’s main purpose, regard should be had to its constituent documents, activities, use of funds and its history.
If an NFP’s main purpose is to provide a social forum for its members or to promote a national cultural heritage, it cannot self-assess as an income tax-exempt cultural organisation.
If the NFP does not meet all the exemption requirements for this category, taxpayers should check whether it might fall into a different exemption category, or alternatively whether it might be taxable.
For example, if all of an NFP’s purposes are charitable purposes and are for public benefit, and the NFP meets the legal definition of a charity, the NFP cannot self-assess as income tax exempt under this category. The NFP will instead need to be registered as a charity with the Australian Charities and Not-for-profits Commission (‘ACNC’) and be endorsed by the ATO to access an income tax exemption.
Taxpayers can refer to ‘ato.gov.au/NFPtaxexempt’ for assistance with preparing to lodge or understanding the NFP self-review return.
Ref: ATO website, Not for profit Newsroom, 6 November 2024
