As part of the 2022-23 Budget, the Morrison government announced more support for small and medium Australian businesses, including GST instalments being reduced to 2 per cent for the 2022-23 financial year and aligning instalment payments with financial performance.
“This measure would free up some cash flow for the collective kitty of small and family businesses, by reducing the tax burden on them,” Ombudsman Bruce Billson said.
“Small and family businesses are however advised to keep abreast of their tax obligations as they would need to pay any extra tax owed at the end of the financial year, if their business earnings exceed what is calculated quarterly.
Businesses will also be able to calculate pay-as-you-go (PAYG) instalments based on financial performance and be given the option to report taxable payments reporting system data through software at the same time as activity statements.
“We welcome the government’s proposed update of the PAYG system from early 2024 to allow for PAYG to be calculated in real time, based on the how the business is tracking financially,” Mr Billson said.
“Reducing red tape allows small and family businesses to get on with what they do best – growing their business.”
