Audit - Are you prepared?

Is your business prepared?

Each year the Australian Taxation Office (ATO) and other Australian government agencies conduct audits, enquiries, investigations and reviews on businesses.

The ATO (and other relevant government bodies) focus can change from year to year, and the team at Accountancy Insurance (who are providers of our ‘Audit Shield’ service’) have shared some insights into what areas may be on the radar, based on claims information from the current financial year.

Compared to the previous financial year (2014/2015), a notable increase has occurred in regards to the relevant state based revenue office’s audit activity. In the states of WA, NSW and QLD, Payroll Tax audits are certainly on the rise and in VIC there has been a campaign aimed at collecting additional Land Tax in respect of land held in trusts which have been incorrectly registered as being held in a company.

The incidence of ATO Superannuation Guarantee reviews and audits continues to increase with a common theme in these claims being that they are instigated by disgruntled employees and contractors ‘dobbing in’ the employer to the ATO for unpaid superannuation entitlements. The Fair Work Ombudsman continues to ramp up their audit campaigns against employers not paying the correct wages and entitlements to employees in a number of industries and locations across Australia translating to an increase in these claims.

The media hype surrounding audit activity on Self Managed Superannuation Funds is prolific. In conjunction with the ATO’s strategic shift to early engagement strategies and dispute resolution, these factors position the ATO for an increased focus on compliance activities.

If you are not already protected by our Audit Shield service, please talk to your accountant about your opportunity to participate in this optional service which covers you against the ramifications of potential audit activity.

 

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