Not a heavy one for today; just some issues to be aware of.

These two matters are probably not a concern for our clients, but you could expect that the volume of ATO activity may result in queries or letters 'to explain'.  If you do receive one, just send it to us for handling.

1. Motor vehicle data matching program

The checking of all vehicles costing over $10,000 and acquired since 1 July 2011.  The information will be used to identify non-compliance with lodgment, payment and reporting obligations, and particularly taxpayers 'not meeting tax obligations, like undeclared income'.  Expect a letter if the business showed a loss or low income and a luxury vehicle was purchased.

2. Share transactions

This program is going back to 20 September 1985 (start of CGT) and again looking for non-compliance with lodgment, reporting and payment obligations.  Very few people retain the information for 30 years, so this one sounded an alarm.  However, the ATO said its purpose is to identify taxpayers not reporting share sales and avoiding CGT, and to 'assist in the calculation of the CGT cost base where shares have recently been disposed'.  The ATO can then provide share purchase and disposal information in its pre-filling service (information on income reported to the ATO for wages, interest, dividends, etc.).

These are measures to 'cut red tape for SME's', but it's likely to mean for some businesses more cost and work.

3. Super Stream

From 1 July 2015, all employers, whether large or small, must remit all super contributions electronically to a super fund (but not for SMSF's where the owners are the only members).  We'll do a special Newsletter on the details of this change.

4. Single Touch Payroll

After 1 July 2016, employers will be required to use payroll software to electronically report payroll and super information to the ATO, at the time employees are paid.  This will eliminate paper-based payroll reporting, with all reporting digitally based.  The ATO has just sought comments on arrangements, costs and timing for remittances of deductions.  This one will be introduced but lots of details are still to be worked out.

As Corporal Jones of Dad's Army used to say:  'don't panic!'.   The ATO has the capacity for matching data on a large scale (in 2013, almost 770 million transactions) and no doubt it has been an effective program, so expect more of 'big brother'.  The message is simple:

- keep good records, the taxpayer is required to prove the ATO is wrong;

- take advice early on transactions where tax may be an issue

- don't rush yet into new software for reporting on payroll and super.