• ATO Uses Google Earth to ID Audit Targets
• National Employment Standards
• Not Meeting Your Tax Obligations
• BSA Licenses
• SMSF Borrowing
• Tax Calendar for Small Business
• End of Year Office Closure

The ATO has developed a computerised Profiling Tool which it will use to determine whether to conduct a tax audit. This tool sources financial and other information about taxpayers including personal details, related entities, income from all sources, foreign transactions and capital gains tax transactions.

The tool also has a Google Earth button which allows a view of the taxpayer's home and surrounds. A live case was demonstrated which showed the taxpayer with many related entities and little taxable income. The Google Earth view showed a large waterfront property complete with a jetty. Based on this information the ATO may investigate further into the taxpayer.

The second stage of the new Fair Work Act will come into effect on 1st January 2010. There are 10 standards being introduced which all carry significant financial implications for Australian businesses. Some of these implications are:

12 Months Parental Leave

In addition to the standard 12 months unpaid parental leave that employers must grant, employees may also request an additional 12 months unpaid leave, bringing the total leave to 24 months. Employers must not reasonably refuse these requests.

Cashing Out Leave

Where awards or agreements allow, annual leave and carer’s leave may be ‘cashed out’ providing a balance of 4 weeks and 15 days respectively is left owing to the employee.

Payment on Dismissal

Employees must be advised in writing of their dismissal and provided with a minimum period of notice, or payment in lieu of notice, based on continuous service.

< 1 year	1 week
1 - 3 years	2 weeks
3 - 5 years	3 weeks
> 5 years	4 weeks

Redundancy Pay

Traditionally redundancy entitlements varied depending on awards or agreements. The new national standards are:

1 - 2 years	4 weeks
2 - 3 years	6 weeks
3 - 4 years	7 weeks
4 - 5 years	8 weeks
5 - 6 years	10 weeks
6 - 7 years	11 weeks
7 - 8 years	13 weeks
8 - 9 years	14 weeks
9 - 10 years	16 weeks
At least 10 years	12 weeks

Businesses with fewer than 15 full time equivalent employees are exempt from this provision.

Sham Contracting

Refers to attempts by employers to disguise an employee as a contractor to avoid the requirement to pay work cover, super and other entitlements. Many employers incorrectly believe that if their employees obtain an ABN they may be treated as a contractor, but this is incorrect. Heavy penalties will apply to employers who engage in sham contracting practices.

Modern Awards

The existing awards are being replaced by Modern Awards. These will reduce the overall number of awards from around 4,000 to just 130. They will be industry based and will include roles not formerly covered. Awards set not only pay rates, but entitlements, loadings and allowances.

Unfair Dismissal

Under previous legislation, businesses employing fewer than 100 employees were exempt from unfair dismissal laws, but this exemption has been abolished.

If dismissal is found to be unfair employers may be forced to either rehire and pay lost wages or pay the employee compensation of 26 weeks pay or $54,150 (whichever is less).

Fair Work Australia

FWA is the new national industrial relations regulator which replaces the Industrial Relations Commission. The FWA’s powers are broader than the old commission in that they can convene single, compulsory conferences or hearings to resolve disputes.

Transfer of Business Rules

A new owner of a business may decide not to recognize the period of service performed by employees for their previous employer when calculating their length of service to determine dismissal entitlements. The new employer must inform employees of this in writing before the new period of service commences.

Businesses with an activity statement debt can apply for a General Interest Charge (GIC) free payment arrangement from now until 30 June 2010.

GIC will be remitted for a maximum of 12 months provided the payment arrangement is maintained and there is no limit on the amount of debt under arrangement.

To be eligible a business must:

• Have an annual turnover of less than $2 million
• Negotiate a mutually acceptable and sustainable payment arrangement with the ATO

To apply, contact the ATO on 13 11 42, or if you would prefer us to act on your behalf, our number is 07 5591 1661. If your debt is less than $25,000 you can use the ATO’s automated self help service by calling 13 72 26.

A Building Services Authority license is required when an individual or company wants to carry out, undertake or supervise work valued over $1,100 (including labour and materials) in Queensland.

Carrying out or undertaking to carry out work is not limited to direct building work but includes activities such as entering into a contract or submitting a tender for building work and providing advisory, administrative, management or supervisory services.

A BSA license is not required by:

• A sub contractor working for a contractor who holds an appropriate license
• An owner builder carrying out work allowable under their permit
• A person working in partnership with a licensee
• An employee of a licensee

The BSA is currently using the Yellow Pages directory to identify builders and trades people who may be operating without the correct license or insurance. Any evidence of building work being carried out without the appropriate license may result in the issuing of an infringement notice or prosecution.

This article only touches on the requirements of the BSA, for more information visit their website or contact UPA on 07 5591 1661.

As you may already know a Self Managed Superannuation Fund (SMSF) is allowed to borrow money in order to purchase assets (e.g. property). When rules first changed two years ago to allow this borrowing, the major banks were not offering competitive finance to SMSFs. However, the banks are now offering products that are much more acceptable.

Perhaps you could use a SMSF to borrow funds and purchase real property e.g. factory, commercial office, industrial shed, residential real estate. You will need to discuss with us the “do’s and don’ts” as borrowing is subject to certain strict rules.

This can be a very effective method of utilizing funds held in an SMSF and taking advantage of concessions applying to superannuation property investment.

UPA has the knowledge and expertise available to provide you with all the necessary information to satisfy the Superannuation Industry Supervision Act 1993 and Lender requirements. Wayne Spelleken would be pleased to take your call should you wish to discuss your particular situation.

It’s always a demanding role keeping up with lodgment and payment due dates for the ATO, especially when you know how strict they are with applying penalties and interest.

Personalise your own tax calendar using the ATO’s Small Business Tax Calendar. You can access this via the Resources page on our website.

The calendar will be created based on the answers you provide about your business and once created can be printed. It will show you the due dates for your obligations and will let you create reminders to alert you when something is due.

The office will be closed for end of year celebrations from Friday 18th December and will reopen again on Monday 4th of January 2010.