Engage sub contractors in your business?
The federal government needs to somehow recover all the tax incentives (joke here) so the ATO has been given extra funding to scrutinise all tax returns from individuals especially in the deductions area. They will be fining for mistakes too to recover 138million. In addition, the annual taxable payments report (currently only applying to building industry) has now been extended to a few other industries. Hairdressing is one of them. This means that if you claim sub-contractors as an expense in your business, you will need to provide a report on who you paid, their abn and the amount to the ATO every year.