The Albanese Government is delivering on its commitment to reduce paperwork and streamline tax processes for small businesses with new legislation introduced today.
The Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Bill 2024 contains new measures which will make it simpler for small businesses to comply with their tax obligations.
Currently, businesses need to make a declaration each time their tax agent lodges their Single Touch Payroll (STP) data on their behalf.
This legislation will allow a business to make a standing declaration to their agent that covers multiple STP lodgements, for up to 12 months, on the employer’s behalf.
This change simplifies the process, saving time and cutting unnecessary red tape.
The Albanese Labor Government is also extending the time small and medium businesses have to self‑amend their tax assessments from two to four years.
Currently, if a business realises they’ve made a mistake in their tax return after the two‑year window has closed, they are required to go through the formal objections process that is time‑consuming, complex, and often costly.
By extending the self‑amendment window, this legislation will give businesses the flexibility to fix errors quickly, helping them stay compliant with their tax obligations.
This legislation will also allow the ATO up to 90 days to gain valid bank account details before processing certain tax refunds.
The law currently requires the ATO to process certain refunds as soon as practicable, even when valid bank account details aren’t available. This often results in the ATO sending refunds via cheques.
Cheques can be delayed or lost, and may impose a cost on businesses to process.
The greater use of electronic funds transfers to bank accounts will facilitate faster, safer and cheaper payment of refunds.
These measures build on the Albanese Labor Government’s support for small businesses in meeting their tax obligations, including through the expansion of the National Tax Clinic Program, with funding for an additional five clinics across the country to provide small businesses and individuals better tax advice and help.
Quotes attributable to Minister for Small Business, Julie Collins MP:
“Small businesses are the heart of our economy. They’re run by hardworking Australians and our Government is working hard to back them.
“Simplifying the tax return process is another way we are helping to back Australia’s small businesses.
“The changes in this Bill will help streamline small businesses’ paperwork, so they can get back to their businesses and their families.
“These are sensible changes to improve the integrity of our tax system, cut red tape, and make our tax system more accessible for Australian businesses.”