THE House Standing Committee on Economics will next focus on the aviation industry as part of its inquiry into promoting economic dynamism, competition and business formation.

Greg Medcraft, former Australian Securities and Investments Commission (ASIC) chair, will also discuss dynamism in the financial industry.

At the next public hearing in Sydney on August 23, the committee will hear from Rex Airlines, the Australian Airports Association, and the Sydney Airport Corporation.  

The committee will also hear from Greg Medcraft, chair of the Australian Finance Group and former chair of ASIC, to better understand competition and economic dynamism in the financial industry.

Committee Chair Daniel Mulino said, "Mr Medcraft also has extensive experience with the OECD in Paris and he has spoken regularly about how the dominance of Australia’s major banks has eroded competition in the banking sector.

"Mr Medcraft has also discussed ways to improve competition in the residential mortgage market and the role that digital disruption, particularly blockchain, will have in improving the efficiency of global capital markets, so the committee looks forward to hearing from him," Dr Mulino said.

More details about the inquiry, including the full terms of reference, are available on the committee’s website.

Public hearing details

Date: Wednesday 23 August 2023
Time: 10am to 1.45pm AEST
Location: Corinthian Room, Sydney Masonic Centre

The public hearing will be broadcast live at https://www.aph.gov.au/live.

ends

THE Australian Taxation Office (ATO) is reminding businesses who are required to lodge a taxable payments annual report (TPAR) to do so by  August 28.

ATO Assistant Commissioner Tony Goding said the taxable payment reporting system helps maintain a level playing field "by ensuring all businesses pay their fair share of tax".

"While most businesses do the right thing, not reporting payments to contractors and deliberately under reporting income makes it unfair for honest businesses,” Mr Goding said.

"It may also be seen as a red flag and could prompt closer scrutiny from the ATO."

Around $400 billion in payments made to almost 1.1 million contractors were reported in the taxable payment reporting system in the last financial year.

"The taxable payments reporting system is just one tool in the ATO’s toolbelt helping expose missing income and keeping things fair for businesses doing the right thing," Mr Goding said.

"We use a range of information in the TPAR to check for red flags, like not including income, not lodging tax returns or activity statements, overclaiming GST credits or mis-using Australian business numbers," Mr Goding said.

Businesses in the building and construction industry, as well as businesses that provide cleaning, courier and road freight, information technology and security, investigation or surveillance services and have paid contractors in relation to these services need to lodge a TPAR.

The ATO recently issued more than 16,000 penalties for businesses who didn’t lodge their TPARs for previous years, despite receiving multiple reminders. The average penalty for not lodging was about $1,110.

"It is getting harder for businesses to hide from the ATO, like using cash payments to avoid tax, as the TPAR data gives the ATO the extra puzzle pieces it needs to catch-out dodgy behaviour," Mr Goding said.

"We know there are some who deliberately don’t report or under-report their income, making it unfair for honest businesses.

"Dodgy businesses doing 'cashies' are being put on notice as the ATO continues to crack down on shadow economy behaviour."

Mr Goding said the shadow economy was estimated to cost the Australian economy $12.4 billion every year in unpaid taxes.

"If you are asking for cash and not declaring it to the ATO, you will receive a 'please explain’ from the ATO and you will be penalised. It’s not a matter of ‘if’, it’s a matter of when," Mr Goding said.

He gave as an axample how TPAR data recently enabled the ATO to investigate a cleaning company which chose not to be ‘squeaky clean’ in their tax return.

A sole trader providing cleaning services reported $6,892 of income from government allowances, but no business income or expenses. The data showed they received payments of more than $80,000 from three different companies. An audit confirmed no activity statements had been lodged and the payments were never reported. As a result, their tax return was adjusted for the omitted income, and penalties were applied.

"Every dollar of tax dodged is a dollar that can’t be used for vital services like health and aged care. The TPAR program helps to prevent billions of dollars being lost to the shadow economy," Mr Goding said.

ends

THE Australian Taxation Office (ATO) is reminding businesses who are required to lodge a taxable payments annual report (TPAR) to do so by  August 28.

ATO Assistant Commissioner Tony Goding said the taxable payment reporting system helps maintain a level playing field "by ensuring all businesses pay their fair share of tax".

"While most businesses do the right thing, not reporting payments to contractors and deliberately under reporting income makes it unfair for honest businesses,” Mr Goding said.

"It may also be seen as a red flag and could prompt closer scrutiny from the ATO."

Around $400 billion in payments made to almost 1.1 million contractors were reported in the taxable payment reporting system in the last financial year.

"The taxable payments reporting system is just one tool in the ATO’s toolbelt helping expose missing income and keeping things fair for businesses doing the right thing," Mr Goding said.

"We use a range of information in the TPAR to check for red flags, like not including income, not lodging tax returns or activity statements, overclaiming GST credits or mis-using Australian business numbers," Mr Goding said.

Businesses in the building and construction industry, as well as businesses that provide cleaning, courier and road freight, information technology and security, investigation or surveillance services and have paid contractors in relation to these services need to lodge a TPAR.

The ATO recently issued more than 16,000 penalties for businesses who didn’t lodge their TPARs for previous years, despite receiving multiple reminders. The average penalty for not lodging was about $1,110.

"It is getting harder for businesses to hide from the ATO, like using cash payments to avoid tax, as the TPAR data gives the ATO the extra puzzle pieces it needs to catch-out dodgy behaviour," Mr Goding said.

"We know there are some who deliberately don’t report or under-report their income, making it unfair for honest businesses.

"Dodgy businesses doing 'cashies' are being put on notice as the ATO continues to crack down on shadow economy behaviour."

Mr Goding said the shadow economy was estimated to cost the Australian economy $12.4 billion every year in unpaid taxes.

"If you are asking for cash and not declaring it to the ATO, you will receive a 'please explain’ from the ATO and you will be penalised. It’s not a matter of ‘if’, it’s a matter of when," Mr Goding said.

He gave as an axample how TPAR data recently enabled the ATO to investigate a cleaning company which chose not to be ‘squeaky clean’ in their tax return.

A sole trader providing cleaning services reported $6,892 of income from government allowances, but no business income or expenses. The data showed they received payments of more than $80,000 from three different companies. An audit confirmed no activity statements had been lodged and the payments were never reported. As a result, their tax return was adjusted for the omitted income, and penalties were applied.

"Every dollar of tax dodged is a dollar that can’t be used for vital services like health and aged care. The TPAR program helps to prevent billions of dollars being lost to the shadow economy," Mr Goding said.

ends

THE Australian Taxation Office (ATO) is reminding businesses who are required to lodge a taxable payments annual report (TPAR) to do so by  August 28.

ATO Assistant Commissioner Tony Goding said the taxable payment reporting system helps maintain a level playing field "by ensuring all businesses pay their fair share of tax".

"While most businesses do the right thing, not reporting payments to contractors and deliberately under reporting income makes it unfair for honest businesses,” Mr Goding said.

"It may also be seen as a red flag and could prompt closer scrutiny from the ATO."

Around $400 billion in payments made to almost 1.1 million contractors were reported in the taxable payment reporting system in the last financial year.

"The taxable payments reporting system is just one tool in the ATO’s toolbelt helping expose missing income and keeping things fair for businesses doing the right thing," Mr Goding said.

"We use a range of information in the TPAR to check for red flags, like not including income, not lodging tax returns or activity statements, overclaiming GST credits or mis-using Australian business numbers," Mr Goding said.

Businesses in the building and construction industry, as well as businesses that provide cleaning, courier and road freight, information technology and security, investigation or surveillance services and have paid contractors in relation to these services need to lodge a TPAR.

The ATO recently issued more than 16,000 penalties for businesses who didn’t lodge their TPARs for previous years, despite receiving multiple reminders. The average penalty for not lodging was about $1,110.

"It is getting harder for businesses to hide from the ATO, like using cash payments to avoid tax, as the TPAR data gives the ATO the extra puzzle pieces it needs to catch-out dodgy behaviour," Mr Goding said.

"We know there are some who deliberately don’t report or under-report their income, making it unfair for honest businesses.

"Dodgy businesses doing 'cashies' are being put on notice as the ATO continues to crack down on shadow economy behaviour."

Mr Goding said the shadow economy was estimated to cost the Australian economy $12.4 billion every year in unpaid taxes.

"If you are asking for cash and not declaring it to the ATO, you will receive a 'please explain’ from the ATO and you will be penalised. It’s not a matter of ‘if’, it’s a matter of when," Mr Goding said.

He gave as an axample how TPAR data recently enabled the ATO to investigate a cleaning company which chose not to be ‘squeaky clean’ in their tax return.

A sole trader providing cleaning services reported $6,892 of income from government allowances, but no business income or expenses. The data showed they received payments of more than $80,000 from three different companies. An audit confirmed no activity statements had been lodged and the payments were never reported. As a result, their tax return was adjusted for the omitted income, and penalties were applied.

"Every dollar of tax dodged is a dollar that can’t be used for vital services like health and aged care. The TPAR program helps to prevent billions of dollars being lost to the shadow economy," Mr Goding said.

ends