Get ready for single touch Payroll

Phase 2

Single Touch Payroll (STP) Phase 2 reporting started from 1 January 2022 and is well underway. If you’re an employer and the product you use is ready, you should start STP Phase 2 reporting now. If your digital service provider’s product isn’t ready yet, make sure you have a plan in place to start reporting when it is ready. Even if you are covered by a deferral, it is important that you don’t leave your preparation and transition to the last minute. For more information, visit: ato.gov.au/stpresources

Check if your registrations are up to date

If you’re not registered for GST, it’s a good idea to review your business regularly. You must register for GST if:

• your business has or is expecting to reach a GST turnover of $75,000 or more; or $150,000 or more if your business is not-for-profit

• you provide taxi or limousine travel for passengers (including ride-sourcing), regardless of your GST turnover.

Once you are registered for GST, you need to lodge and pay your business activity statement (BAS) by your due date. If you have nothing to report, you still need to lodge your BAS as ‘nil’. Find out more at: ato.gov.au/GStregistration

Other registrations you may need include a director identification number (director ID), pay as you go (PAYG) withholding and PAYG instalments.

If you run your own business, planning ahead for your income tax is important to help you keep a healthy cash flow. PAYG instalments allow you to make regular prepayments during the year toward your end of year tax bill, so you won’t have to pay a large amount when you lodge your tax return.

You can find out more about PAYG instalments at: ato.gov.au/startingpaygi

Know How To Lodge Your Tax Return

There’s no threshold for business income so you need to lodge a tax return if you carried on a business, even if your business has not earnt any income. What you need to report and how you lodge your annual tax return for your business depends on your type of business entity.

Find out more at: ato.gov.au/SBtaxreturns

Lodge your bAs online and on time

Are you one of the few who still lodge your BAS by paper? Join the millions who choose to lodge their BAS online. It’s quick, easy and secure. Plus, when you lodge online you may receive an extra two weeks to lodge and pay.

For more information, visit: ato.gov.au/lodgeBAS

If you can’t lodge or pay on time, engage with us as soon as possible to discuss your options. Visit: ato.gov.au/supporttolodgeandpay

Make Sure Your Records Are Complete And Accurate

It’s important to understand what records you need to keep, and that they are complete and accurate. You need to keep most records for five years, store them in a safe place, and they must be in English or able to be easily converted to English.

Find out more at: ato.gov.au/recordkeeping

You can use our record-keeping evaluation tool to assess how well you’re keeping business records by visiting: ato.gov.au/recordkeepingevaluation

Check out our tax time toolkit

Our tax time toolkit for small business is a handy directory with guides on home-based business expenses, motor vehicle expenses, digital product expenses, travel expenses, and if you have to pause or close your business. Find out more at: ato.gov.au/SBtaxtimetoolkit

Make Sure Your Cyber Security Is Up To Date

It’s important to keep all your business, staff and client information secure. If your data’s lost or compromised, it can be difficult and costly to recover. Knowing what to protect and how to protect it is your best way to stay safe.

to find out more go to: ato.gov.au/businessidcrime

You can also find guides and resources, including a Small Business Cyber Security Guide, at: cyber.gov.au

Lodge even if you can’t pay

It’s important to lodge on time, even if you can’t pay. This will show us you’re aware of your obligations and doing your best to meet them.

If you’re worried you won’t be able to pay on time, engage with us as soon as possible or speak with a registered tax agent who can contact us on your behalf, to help avoid penalties and firmer action. We will work with you to set up an affordable payment plan and you may be able to set up a plan yourself using our Online services for business.

And remember, it’s never too late to ask for help. Whether it’s COVID-19, natural disasters, personal issues or financial difficulties, we’re committed to understanding your situation and helping you to get your tax and super right.

For more information, visit: ato.gov.au/taxsupportforbusiness and ato.gov.au/helpwithpaying