ATO’s Compliance focus 2023:
If this information gives you goosebumps, then you should read our next article about AuditShield insurance.
Tax News for Business Owners:
The Government will introduce a skills and training boost to support small and medium-sized businesses to train and upskill their employees. The boost will apply to eligible expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (i.e., Budget night) until 30 June 2024.
Small and medium-sized businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20% of expenditure incurred on external training courses provided to their employees. The external training courses will need to be provided to employees in Australia or online and delivered by entities registered in Australia.
Some exclusions will apply, such as for in-house or on-the-job training and expenditure on external training courses for persons other than employees.
For eligible expenditure incurred by 30 June 2022, the boost will be claimed in tax returns for the following income year. For eligible expenditure incurred between 1 July 2022 and 30 June 2024, the boost will be claimed in the income year in which the expenditure is incurred.
The Government will introduce a technology investment boost to support digital adoption by small and medium-sized businesses. The boost will apply to eligible expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (i.e., Budget night) until 30 June 2023.
Small and medium-sized businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20% of expenditure incurred on business expenses and depreciating assets that support their digital adoption (such as portable payment devices, cyber security systems or subscriptions to cloud-based services).
An annual cap will apply in each qualifying income year so that expenditure up to $100,000 will be eligible for the boost. This equates to a maximum additional deduction of $20,000 per eligible year.
For eligible expenditure incurred by 30 June 2022, the boost will be claimed in tax returns for the following income year. For eligible expenditure incurred between 1 July 2022 and 30 June 2023, the boost will be claimed in the income year in which the expenditure is incurred.
If you’re bringing on a new accountant, or changing what your current one is allowed to do for you, the ATO now needs you to approve that link yourself. It’s called client-to-agent linking, and it exists for a good reason: it stops anyone attaching themselves to your ABN without your say-so.
The catch is that we can’t do this step for you. You have to nominate us from your own ATO Online services for business account. Here’s exactly how it works.
Client-to-agent linking applies to all entity types with an ABN — companies (including strata title bodies), partnerships, trusts, not-for-profits, joint ventures, co-operatives, SMSFs and APRA-regulated super funds. It has applied to all of them since 13 November 2023.
Sole traders, individuals and entities without an ABN don’t need to do this at this stage.
You’ll need to nominate an agent when you:
Two things need to be in place before you can nominate anyone.
1. A myID with at least Standard identity strength. myID is the Australian Government’s digital identity app. It was called myGovID until it was renamed — same app, new name — and it is not the same thing as your myGov account. You can set it up at myid.gov.au.
2. Your myID linked to your ABN in Relationship Authorisation Manager (RAM). RAM is what tells the ATO you’re authorised to act for the business. The principal authority — usually the business owner, director or public officer — must be the first person to link the ABN in RAM.
You can link online if you have a Strong identity strength and your name is listed in the Australian Business Register. If you don’t have Strong identity strength, or you aren’t listed as an individual associate in the ABR, you’ll need to phone the ATO to get linked instead.
The good news: this part is a one-off. Once your myID and RAM access are sorted, you won’t need to do it again.
Once you submit the nomination, we have 28 days to add you as a client before it lapses. If we need longer, you can use the Extend feature in Online services for business, which adds another 28 days from the day you extend.
And if it does expire before we get to it, there’s no penalty and nothing to undo — you simply nominate again.
If you strike an error while completing the nomination, contact the ATO and ask to speak with a customer service representative. You’ll need to establish your identity before they can discuss your details, and it helps to have our RAN ready so they can find us quickly.
Most of the friction in this process is in the myID and RAM setup, not the nomination itself. If you’re stuck at any point, get in touch — we’ll walk you through it, and we’ll give you our RAN so you’re not hunting for it mid-process.
Under the new legislation, since November 2021 all company directors are required to obtain a director identification number (director ID). A director ID is a unique 15-digit identifier that stays with you for life, no matter how many companies you run. It’s free to apply and you only need to apply once.
All new directors must apply for Director ID before being appointed.
How to apply:
The fastest way to get a director ID is to apply online using the myGovID app.
Follow this ABR step by step guide
You must apply for a director ID yourself, unfortunately a Tax Agent cannot do it on your behalf. However, we can always assist you with the process.
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