A recent speech by Michael D’Ascenzo, Commissioner of Taxation, to the Council of Small Business of Australia highlight the issue of unreported cash transactions as a high priority for the ATO.
Benchmarking gives people an idea of what range of income can be expected based on the work they do and other costs they have—like income in proportion to business inputs.
Three industry benchmarks are being published today by the ATO and trade associations. Benchmarks have been produced for the floor sanding, roof tiling and painting industries.
Business operators will be able to use the benchmarks to compare their performance with the rest of the industry and to check that their tax records accurately reflect their business practices.
Understandably there may be times when business performance could be outside these benchmarks and for valid reasons, but consistent, long term performance outside a benchmark could indicate non compliance.
The Tax Office is working on similar benchmarks for other industries.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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