Integrity – level playing field
The Government will continue its commitment to strengthen the economy by focusing on improving its integrity measures to create a level playing field for all.
Funding new ATO enforcement
Additional funds will be allocated from the Budget over four years to fund a new ATO enforcement strategy to tackle the Black Economy. Through this measure, the ATO will implement new mobile strike teams, stricter auditing and a Black Economy Hotline for Australians to report Black Economy and illegal phoenix activity.
Cash payment limit
The Government will commence with a restriction on cash payments made to businesses for goods or services of up to $10,000 from 1 July 2019. Payments over $10,000 must be made via an online banking system, or cheque, unless payments are with financial institutions or consumer to consumer non-business transactions.
No tax deductibility for non-compliant payments
From 1 July 2019, the Government is keeping a closer eye on those businesses that try to claim deductions for any payments made to their employees that do not comply with current regulations. Deductions for payments from a business to a contractor will also be disallowed if the contractor does not have an ABN and the business does not withhold any PAYG monies, despite the withholding requirements applying.
Reforms to combat illegal phoenixing
Corporations and tax laws will be strengthened with further measures to prevent illegal phoenix activities. Those measures will include changes to:
- introduce new phoenix offences for individuals who run or open the door to illegal phoenixing;
- stop directors incorrectly backdating resignations to avoid liability or prosecution;
- control the power of related creditors to vote on the appointment, removal or replacement of an external administrator;
- expand the Director Penalty Regime to GST, luxury car tax and wine equalisation tax to make directors personally liable for company debts; and
- allow the Tax Office to restrict funds for outstanding tax lodgements.