top of page
Folded Newspapers
Search

Navigating Tax Compliance: Key Changes for Australian SMEs

Updated: Feb 16

In 2019, Australian small to medium-sized enterprises (SMEs) faced significant tax compliance changes. Understanding these modifications is crucial for minimizing risks and maximizing tax benefits.


Staying updated on tax law changes is vital for SMEs to ensure compliance and optimize financial outcomes. Several key changes in 2019 impacted SMEs in Australia, requiring businesses to adjust their approach to tax planning and compliance.

Key Tax Compliance Changes for SMEs in 2019

  1. Company Tax Rate Adjustments: The Australian Taxation Office (ATO) implemented changes to company tax rates, introducing lower rates for eligible entities. This change aims to reduce the tax burden on smaller businesses, enabling them to reinvest in growth and expansion. Businesses need to be aware of these adjustments to ensure accurate tax planning. (ATO, 2019)

  2. Increased Focus on Compliance: The ATO intensified its focus on stricter compliance, particularly targeting outstanding tax debts and scrutinizing property transactions. With this shift, SMEs are expected to maintain more rigorous tax practices and adhere to filing and payment deadlines to avoid penalties. (William Buck, 2019)

  3. Superannuation Guarantee Increase: The Superannuation Guarantee rate was set to increase to 11% in 2022, with annual increments of 0.5% until it reaches 12% by 2025. SMEs must ensure they adjust payroll systems accordingly to meet these new requirements, as failure to comply could lead to penalties. (AGI Bookkeeping, 2019)

  4. Remote Work Expenses Deduction Revision: A revision of the fixed-rate method for claiming home-based business expenses took effect, raising the deduction to 67 cents per work hour from July 2022 (up from 52 cents per hour). This change primarily affects SMEs with home-based operations or employees working remotely. (AGI Bookkeeping, 2019)

Strategies for SMEs to Navigate Tax Compliance

  • Stay Informed: Regularly consult the ATO's updates and other tax-related resources to stay aware of tax law changes.

  • Implement Robust Record-Keeping: Accurate, up-to-date financial records are essential for smooth tax compliance and support in case of audits.

  • Seek Professional Advice: Engaging with tax professionals or corporate advisory services will help SMEs navigate the complexities of tax compliance effectively.

  • Utilize Available Resources: Leverage available resources, such as the OECD’s series on "Supporting SMEs to Get Tax Right," to further ensure tax compliance. (OECD, 2020)


Adapting to tax law changes is essential for SMEs to minimize risks and maximize benefits. By staying informed and seeking professional advice, SMEs can navigate the evolving tax landscape effectively.

If you would like to enquire about your GST implications for 2019, book a complimentary consultation with DGMS Group.


  1. Australian Taxation Office (ATO). (2019). Company Tax Rate Changes. Retrieved from https://www.ato.gov.au/tax-rates-and-codes/company-tax-rate-changes

  2. William Buck. (2019). SMEs: Be Aware of the ATO’s Focus on Stricter Compliance. Retrieved from https://williambuck.com/news/business/general/smes-be-aware-of-the-atos-focus-on-stricter-compliance

  3. AGI Bookkeeping. (2019). How Do Latest Australian Tax Law Changes Impact Your Business?. Retrieved from https://www.agibookkeeping.com.au/how-do-latest-australian-tax-law-changes-impact-your-business

  4. OECD. (2020). Supporting SMEs to Get Tax Right: Series. Retrieved from https://www.oecd.org/content/dam/oecd/en/publications/reports/2020/12/supporting-smes-to-get-tax-right-series_839eade6/6bbee510-en.pdf


 
 
bottom of page