Is this the end of Cash being King?
One of the ATO and Commonwealth’s key focuses in recent times has been the cash and hidden economy.
Particularly, the ATO is concerned about businesses who advertise ‘cash-only’ or deal mainly in cash. We can see that the ATO and the Commonwealth are both pushing for more transactions to be electronic – by regulating merchant fees to be capped; RBA’s Fast Settlement Service to clear funds between institutions nearly instantly; Single Touch Payroll for all wages and a framework supporting businesses migrating to electronic commerce. The private sector is also joining the rush to assist businesses in transacting online for quicker, safer and easier to manage sales.
The ATO is working collaboratively with business operators, business chambers and industry associations to highlight the following key messages:
• the benefits of electronic payment and record keeping facilities
• community expectations of paying by card
• making sure businesses are registered correctly
• ensuring all businesses pay the correct amount of tax and super by declaring all their income and knowing what expenses they can claim
• lodging their tax returns and activity statements
• meeting their obligations and if they are struggling, taking into account specific circumstances, and helping them get back on track
• any other help they may need.
The ATO regularly undertakes data matching to identify businesses that don’t take electronic payments from customers. These businesses will be contacted by the ATO via email or letter highlighting the benefits of investing in an electronic payment facility. Some of the benefits of electronic payment options are as follows:
• easy to set up including EFTPOS, smartphone and tablet card processing
• consumers are going cashless and expect to have a choice
• fewer mistakes – so less contact from the ATO
• quicker reconciling at the end of the day – less time in queue at the bank
• less chance of being presented counterfeit notes
• reduces the risk of theft or break-ins.
EFTPOS/Paywave machines are now evolving:
CBA's Albert integrating into many POS like Kounta to eliminate staff fraud.
ANZ's BladePay can integrate with Kitchen docket printers...
and phone intregated solutions like Square for Tradies on the go.
Most solutions integrate reliably with Xero or Intuit QuickBooks
If your business operates mainly in cash or is not currently using electronic payment systems, we can assist you in sourcing, implementing and maintaining the appropriate electronic payment and record keeping systems to keep the ATO at bay.