Christmas has always been my favourite time of year. The rush to squeeze everything in before everyone shuts down, then a week or two of lazing around doing nothing at all but reflecting on the year that’s been and the year to come, before life starts to wind up again in January.
Things are, of course, a little different this year. Spending a week or so at home on holidays doesn’t seem to have the same appeal since we’ve been working from home since March.
As for reflections…… All I’m going to say about this year is that it was interesting. Launching our new business in March, just as fear of the global pandemic reached fever pitch, was a challenge, but a challenge that I’ve loved none the less. I certainly wouldn’t have swapped this challenge for anything else.
This year has seen unprecedented actions by Treasury and the ATO to help stimulate the economy. While there may have been a few early hiccups, the speed at whcih CashBoost, JobKeeper and JobMaker schemes were rolled out should not be under estimated.
Looking forward, I suspect 2021 will be a year of rebound and growth. As any history buff will tell you, after the Spanish flu pandemic of 1918-1919 came the roaring 20’s, which saw explosive economic growth across the world. I suspect once we get past this pandemic, coupled with the massive government stimulus that has pumped the economy, that the growth pattern will be the same. There will be only one way for the economy – and it’s not down!
2021 will also be an interesting year for tax. Thinking back to a year ago, the ATO was preparing compliance activities aimed at the SME and individual tax payers. As the data from the tax gap analysis shows, these two sectors account for over half of all missing tax revenue. While the big end of town makes the headlines, non-compliance by the small tax payer accounts for most of the missing money. Then in 2020, the various government support schemes diverted the ATOs attention away. Expect a renewed focus on the SME tax payer for 2021.
Finally, I wanted to thank all our friends and clients of the firm. We are here to serve you and to make your business a success and I hope that we have helped you in the journey this year.
Wishing everyone a Merry Christmas and a Happy New Year.