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June 2024 Newsletter

SuperannuationEnd of Financial Year The New "Financial" Year

Superannuation

1. April to June 2024 Quarter Superannuation

  • Technically or legally it is due 28.07.24. If however you want to claim it as a Tax Deduction in this Financial Year, it must have been paid through your bank account before the 30th of June and received by the actual fund by the 30th of June. 
  • If we process your super, we will be triggering the April - June Quarter on if not before the 18th of June. Xero suggests(strongly) if you want to claim it as a Tax Deduction in the FY2024 then you also authorise it by the 18th of June. If you are happy for it to fall into next Financial Year, then we suggest saving the authority code (you will recieve via text) and diarising to authorise it by the 20th of July to make the 28th of July deadine. 

2. WARNING - Don't be late with your super payments.

  • We are strongly recommending from now on you make sure your super payments are made on time and NOT a day late. 
    • If your payments are late, even a day, you are required to lodge a Super Guarantee Statement and pay the following; 
      • SG shortfall amounts (the value of super you didn’t pay – including any choice liability calculated on your employee’s salary or wages)
      • Interest on those amounts (currently 10%)
      • An administration fee of $20 per employee, per quarter.
      • & the above is not tax-deductbile.
    • The ATO with STP (Single Touch Payroll) process is connecting dots and data matching so they will know if it is a day late and you can be fined for not lodging Super Guarantee Statement - don't believe me, read all about it and watch this video >  https://www.ato.gov.au/businesses-and-organisations/super-for-employers/missed-and-late-super-guarantee-payments/the-super-guarantee-charge
    • Should you need to lodge a Super Guarantee Statement, we recommend getting your accountant to do it as they have electronic access or yourself via the Online Services for Business - we can assist with that. The fees and penalties are one thing, the fiddliness of filling out the form even more frustrating so again we strongly recommend your are NOT late with paying super.
  • The director of a company that fails to meet an SGC liability in full by the due date automatically becomes personally liable for a penalty equal to the unpaid amount.

3. Superannuation Increases to 11.5% from 01.07.24 

  • This will happen automatically in Xero from the first payrun in the new financial year and or if a payrun from FY2024 is not paid until post 01.07.24. The 11.5% is applied to the OTE amount paid on or from 1st July, irrespective of when those amounts accrued. It is about the date of payment for SG, not when it was earned.
  • This is an increased cost to business that must be considered for cashflow and budgeting purposes as such, we do recommend revisiting and updating your costings and budget to ensure you have catered for the increase.

End of Financial Year 

1. In the lead up to EOFY2024 ie. 30.06.24 

We want to make sure we have all your ducks lined up and optimised..... and so in the next week or so, we'll be sending you out your End of Month Snapshot for May that will include;

  • Aged Receivables - if applicable, a list for your review any bad debts or write offs?
  • Aged Payables - if applicable, a list for your review to confirm accuracy
  • A list of Fixed Assets - so you can review and confirm we have everything you have bought in the last year and or if you have sold any Assets in this last year too.
  • Stock Take - if applicable diarise to do this 30.06.24 or as close to it as possible
  • Diarise to Take a pic/record your speedo reading 30.06.24


2. Reach out to your Accountant in the next week or so... 

If you haven't already and get their direction on;

  • Tax Planning & Optimsing - do they have any recommendation for your prior to 30.06.24

  • Directors Loan(s)
    • Do you need to do anything with the balance?
    • Is it applicable/worthwhile to potentially Pay Down any Leave Entitlements you have accured as a director against your director loan(s).

  • Fixed Assets - have your bought or sold any  Assets in this last year. Very worth mentioning to your Accountant. If we have the details it will be in Xero should they need to access details and b) we will include it in the End of Year accounts we forward to your accountant post 30.06.24
    .
  • Wages and Superannuation for the FY2024 - Do they recommend you pay (& we process) any additional wages & or super for you and or any of your staff prior to 30.06.24? 

​ ​FYI - Superannuation Concessional Cap(s);

      1. 2024 Superannuation Concessional Cap - $27,500 (talk to your accountant)
      2. 2025 Superannuation Concessional Cap - $30,000 (talk to your accountant)

& whatever else they  know that we/I/you don’t know about your Tax and things you need know or do before End of Financial Year :-)

The New "Financial" Year

  • Xero Subscription Fees are going up 01.07.24 - Read all about it Xero Pricing Plans Update and  the new Plans Xero AU. You subscription invoices will be updated accordingly for 01.07.24

  • Tax Debts  - Not to put the fear in you but maybe a little. The ATO have advised as of 01.07.25, they will not be being as ‘kind’ not sure that is the correct word. Lets say as obliging with regard to Payment Plans, Fines and Penalities and or Interest for late lodgement, payment and debts. In fact I can tell you, they are already making it harder. I had to put a payment plan in place the other day for someone and there is new criteria people are now needing to meet - they already are tightening up. 
  • Having trouble paying - we definately recommend getting on the front foot, lodge and then negotiate. The ATO are or have been more supporting/open if you have everything lodged. 
    • Starting July 1st, 2025, small businesses in Australia will face a significant increase in costs for tax debt. 
    • This is due to the fact that interest charges on overdue payments, which were previously tax-deductible, will no longer be so. 
    • This change means that if a business fails to pay its taxes on time, it will be hit with additional charges known as the general interest charge (GIC) and shortfall interest charge (SIC), both of which are currently tax-deductible. 
    • Over 42,000 small businesses are currently ‘disengaged’ from ATO and are at risk of facing severe consequences when overdue payment rules change in 2025. 
    • Australia’s top corporate authorities and regulators, including the ATO itself, have issued a stern warning, urging small businesses to step forward before they are hit with these severe penalties. 
  • The other thing we are strongly recommending is if you haven't already, set up a second bank account and get disciplined in putting at least 20% if not 30% of your income aside each month (if not weekly or fortnightly) so you are all set to go go (yes I meant to say that twice) come BAS, Super and Tax time and there are no surprises or you'll have some $$ put aside.

For Employers

  • Miniumum Wage Increase from 01.07.24 - National and Award
    • Check your Awards to confirm if the increase applies to any of your employees and 
    • Did you know that FWO(Fair Work Ombudsman) provides Free, Tailored Written Advice for Small Business? The FWO Employer Advisory Service (EAS) is there to help small businesses meet their obligations under the Fair Work Act and can help with questions about: 
      • Pay and conditions under awards and enterprise agreements. 
      • The application of the National Employment Standards. 
      • Record keeping and payslip obligations
      • It is a good idea to subscribe to email updates from the Fairwork Ombudsman - and will send you an email reminding you to check your new rates on 1 July 2024
  • STP Finalisation is due 14.07.24 - essentially the old 'Payment Summaries' we used to publish and provide your employees with. Now days, we just click a button and all that information goes straight in to their MyGov where they can access it as their leisure or not. We'll be reconciling and sending out finalisation confirmation for your review and authorisation in the first 2 weeks of July (unless you are closely held employees) so we can click the button and finalise your FY2024 Payroll by 14.07.24

  • An updated version of the 'Fair Work Information Statement' will also be available from 01.07.24.
      • Employers must give every new (full or part-time) employee a copy of the Fair Work Information Statement (FWIS) and every new casual employee a copy of the Casual Employment Information Statement (CEIS) before, or as soon as possible after, they start their new job. 
        ***Copies of these are included in the "New Employee Kit" we send out to any new employees on your behalf when we are getting them set up on Xero.
      • When an employee enters a new fixed term contract, they must also be given a copy of the Fixed Term Contract Information Statement (FTCIS).

  • Other upcoming changes - From 1 July 2024, employers and employees should know about:
      • Workplace delegates’ rights in awards
      • New rights for workplace delegates will be added to awards from 1 July 2024. These rights will expand on existing rules in the Fair Work Act for workplace delegates. The Fairwork Ombudsman, will update their information once the rules are finalised by the Commission. In the meantime, learn more at Variation of modern awards to include a delegates’ rights term.
      • Right of entry changes - There are upcoming changes around right of entry notice requirements to investigate underpayments. Find out more at Right of entry exemption certificates and permit conditions.


Other that all that Happy nearly New 'Financial' Year.

Annie and the team at Admin Happy