The Black Economy Task Force has already had an impact on the business landscape in Australia. Recommendations contained in the task forces interim report have already been implemented and some are on the “to be considered” whiteboard.
Some of these include:
- Taxable Payment Reporting (TPAR) extended beyond Building and Construction to now include:
What's next? Security? Home care?
ICB propose that there is logic behind the TPAR reporting system extending to all business-to-business transactions. This would require full ABN validation before a business makes a payment. One step at a time…
Government should only buy things from business with a good tax record and who do not engage in bribery and corruption. This seems to make sense to us.
TPAR has already extended to Government Grants; in that Government organisations must now report to the ATO who they have given Grants to, so that the ATO checks those grants are reported.
No tax deductions for cash payments!
If a business pays cash then the concept is that the payment must be reported as part of payroll (so you would have a TFN) or as part of TPAR (so you would need to have a valid ABN) or no tax deduction. Ouch! …but we think it has merit.
“Sales suppression technology” outlawed, and so it should be.
For the full report: treasury.gov.au – New Fight Against the Black Economy