The recent tax report by Julie Baron of Vialto Partners on The View From The Top looked at the impact of STP2 and worker classification draft on Australian businesses
As the world becomes increasingly globalized, tax laws and regulations are becoming more complex than ever before. In today's world, it's crucial for businesses to stay up to date on the latest tax developments in order to remain compliant and avoid costly penalties.
On our most recent show Julie discussed the latest tax developments in Australia, including two hot topics that are currently making waves in the country.
1) Single Touch Payroll (STP2)
The first topic is payroll, specifically the Australian government's implementation of STP2. This system requires a real-time feeding of payroll information into the Australian tax authorities, with 36 different labels of compensation that must be categorized for each piece of income. Many companies are struggling with the level of detail required by this new system, and are seeking assistance from tax professionals to ensure compliance.
2) Worker Classification
The second topic is worker classification, which is a hot issue in many countries around the world. The ATO (Australian Taxation Office) has issued a draft on worker classification, which outlines different scenarios and risk levels for employee and contractor classification. The ATO is expected to look closely at worker classification during audits, making it critical for companies to ensure that they are categorizing their employees and contractors correctly.
These two topics highlight the importance of staying up to date on tax developments in Australia, as well as in other countries around the world. Failure to comply with tax laws and regulations can result in significant financial and legal consequences for businesses.
Watch the complete tax update here:
To join the audience live for the next The View From The Top, please sign up for a calendar invitation.
.jpg)