ATO targets small businesses’ obligations in new info campaign

The Australian Taxation Office (ATO) has said it is offering extra support to “new small business owners” to help them understand tax, super and registry obligations through a new “ready for business” campaign.

In a statement on Monday, the ATO said that approximately half of all businesses fail in their first three years, often due to a failure to understand their obligations. The tax office said it will contact ABN holders by email in the coming weeks with relevant advice.

“Through transparent communication, including the support we have available for small businesses, small business owners are better equipped to keep up with their obligations and stay on top of their tax payments,” said Deputy Commissioner of the ATO, Will Day.

The ATO cited GST compliance as an “ongoing area of concern”, with small business non-compliance a significant contributor to “almost $8 billion in GST each year” that went uncollected.

Day advised small businesses to set aside money for GST – as well as other obligations such as PAYG tax and superannuation if these applied – and advised “separate bank accounts for these funds so you’re always prepared when it’s time to pay”.

More information is available here.

Picture: ATO/X