ATO focus on super obligations – child care, pubs and cleaning

Each year, the ATO identifies industries where employers are at a greater risk of not making super contributions for their eligible employees.

This year its focus is on:

  1. child care services;
  2. pubs, bars and taverns; and
  3. industrial cleaning industries.

Furthermore, the ATO stated that, in early 2015, it will write directly to employers in these industries to remind them of their super obligations.

It has also advised that it will be undertaking super obligation audits of these industries from July 2015.

The ATO reminds all taxpayers that they must:

  • contribute at a rate of 9.5%; make contributions by the quarterly cutoff dates (i.e., 28 October, 28 January, 28 April, 28 July);
  • pay super for eligible contractors, even if the contractor quotes an Australian Business Number (ABN); and
  • give an employee’s tax file number (TFN) to their super fund within 14 days of receiving it.

Construction industry annual payments report

Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year. You need to report these payments to the ATO on the Taxable payments annual report by 28 August each year

What are ‘building and construction services’?

It includes services such as bricklaying, plumbing, etc. However, it also includes some activities that businesses may not be aware of, such as:

  • architectural work (including drafting and design);
  • cable laying;
  • communications construction;
  • decorating (including painting);
  • engineering;
  • installation of hard wired alarm systems;
  • installation of solar devices;
  • landscaping; and
  • project management.

Single Touch Payroll

The Government has announced that it will simplify tax and superannuation reporting obligations through ‘Single Touch Payroll’. Under Single Touch Payroll, employers’ accounting software will automatically report payroll information to the ATO when employees are paid.

This will eliminate the need for employers to report employee-related Pay As You Go Withholding (PAYGW) in their activity statements throughout the year, and employee payment summaries at the end of the year. The Government stated that Single Touch Payroll will be available from July 2016, and transition arrangements will be the subject of consultation with the business community early in 2015.

Share Transactions

The ATO has also announced a new “Share transactions data matching program” that will acquire details of share acquisitions and sales from 20 September 1985 to 30 June 2016 from:

  • Link Market Services Limited;
  • Computershare Limited;
  • Australian Securities Exchange Limited;
  • Boardroom Pty Ltd;
  • Advanced Share Registry Services Pty Ltd; and
  • Security Transfer Registrars Pty Ltd

It estimates that more than 95 million records will be obtained, including the records for approximately 1.2 million individuals.

The type of data that the ATO will collect includes the name and address of the taxpayer, and the date, price and number of shares acquired or sold.