Employer Obligations Audit Plan

Dated: October 2006

The ATO has recently issued the following notice on their web site:

"We will undertake audits and reviews to ensure employers are complying with their pay as you go (PAYG) withholding, fringe benefits tax (FBT), superannuation guarantee (SG) and choice of superannuation fund obligations."

They intend to conduct both field visits and phone reviews by identifying potential inconsistencies in employer reporting obligations.

The ATO will also be looking into labour market arrangements including contracting and labour hire services.

7,743 phone enquiries, client profiling reviews and field visits are planned for 2006/07.

This process of enquiries and reviews raised $182.5 million in extra revenue as a result of the ATO's 2005/06 compliance activities.

The major issues noted by the ATO were:

  • poor record keeping
  • poor cashflow management
  • lack of understanding of the less common issues, such as termination payments
  • not lodging activity statements when they are unable to pay the full amount owing
  • wrong Australian Business Number (ABN) on payment summaries
  • poor communication between bookkeepers, business owners and agents
  • business that have incorporated and have not realised that they need to withhold payments to directors.

Should you have any questions in relation to this matter or feel we could be of assistance to you in reviewing your employer obligations, please contact us immediately.
Important Disclaimer - Liability limited by a scheme approved under Professional Standards Legislation.
The information contained on this Web Site may be out of date or include omissions, inaccuracies or other errors. Except as otherwise expressly provided in an agreement between you and Patison Partners, all information provided cannot be regarded as advice. You should not act solely on the basis of the material contained in this Web Site.
In no event shall Patison Partners be liable for any direct, indirect, incidental, punitive, special or consequential damages, or damages for loss of profits, revenue, data or use, incurred by you or any third party, whether in an action in contract or tort, arising from your access to, or use of, this Web Site or any other hyperlinked Web Site.