The end of the financial year could be a compliance headache for retailers as they come to grips with the Federal flood levy when it comes into force in July, according to business software company MYOB.
Employers will also have to work with the 24 new payroll schedules for the levy over the next 12 months, calculate indexation changes to the Higher Education Loan Program (HELP), Student Financial Supplement Scheme (SFSS) and the Medicare levy as well as low income tax offset changes.
MYOB CEO Tim Reed says the extra paperwork is a burden for businesses.
“The Federal Government is making life harder for the majority of business owners in Australia,” he says. “Aussie business owners don’t go into business to do administrative reports for the government. If they thought the carbon tax was going to lose votes, try explaining to more than two million business owners why their paperwork will increase substantially from July 1.
“The ATO has effectively outsourced the Flood Levy administration and compliance burden to family businesses, while at the same time the Federal Treasurer is increasing interest rate pressure by not lowering sovereign debt this year. While the Flood Levy will greatly assist the rebuilding effort in Queensland and other communities affected by natural disasters around Australia, adding multiple new payroll scales will not win the ATO or the Federal Government any friends in the business community.”
The company has prepared a guide to help retailers understand the changes and encourages business owners to talk to their accountants to find out how they’ll be affected.
Reed has urged the Federal Government to make tax simpler for employees which he says will help improve the economy.
“We call on the Federal Government to… ease the burden and complexity of financial reporting for businesses. If the government provides legislative certainty the business community will reward them with a solution to the two speed economy.”