Important information for Employers: EOFY 2024 Payroll Processing & Finalisation

It’s time to process your EOFY Payroll using Single Touch Payroll (STP).

Employees now access their Income Statements (previously known as Payment Summary or Group Certificate) through their personal MyGov account.  This happens after you have completed your Single Touch Payroll processing.

Single Touch Payroll finalisation must be completed by 14 July 2024.

To finalise your Single Touch Payroll in Xero you need to complete your End of year Employer Reporting.  There are two ways you can do this:
Option 1: The Easy Way
Let Suntax complete your Employer Reporting for you.  

The cost to prepare Employer Reporting will be as follows:

  • STP Finalisation – $150 + GST and $20 + GST per employee
  • Annual Workers Compensation – Declaration of Rateable Remuneration
    • $90 + GST if we are completing STP Finalisation
    • $190 + GST  if we are not completing STP Finalisation
  • Payroll Tax Annual Reconciliation – $250 + GST per state reconciliation

 If you choose this option, you do not need to read this newsletter any further.


   Request Suntax to complete STP Finalisation   

 

Option 2: Complete the Employer STP Finalisation Yourself

Step 1 – Complete the Instructions on the Xero Payroll Checklist 

Step 2 – Workers Compensation Annual Declaration of Rateable Remuneration

At the end of each financial year, employers are required to declare their total rateable remuneration to their Workers Compensation insurer and an estimation of the following year’s remuneration.  If you employ staff in various states, you may be required to hold a workers compensation policy for each state.  Please let us know if you would like assistance with this.

If you are registered for Workers Compensation, your insurer will issue a Tax Invoice shortly after the end of the financial year.  This tax invoice will provide details on how to access your online account if you haven’t done so already.  By logging onto your online account, you can make the declaration online.

If you only employ staff in Victoria, here is a link to assist you in calculating your remuneration:   Remuneration inclusions and exclusions

Or, if you would like further information about Workers Compensation Insurance in Victoria, click on this link:  More Information about Victorian Workers Compensation Insurance

Step 3 – Payroll Tax Annual Reconciliation (if applicable)

Payroll tax is a state government imposed tax with varying thresholds and rates for each state.  If you employ staff in multiple states and you need advice on your payroll tax status, please contact us.  If you only employ staff in Victoria and your total wages plus superannuation exceeds $700,000 for the 2024 FY, then you will be required to register for Payroll Tax.

At the end of each financial year, if you are registered for Payroll Tax, you are required to submit an Annual Reconciliation.

We know it has been another year of challenges and EOFY can be a particularly hectic time, so if these steps seem too onerous or time consuming please remember we have a team at the ready to process your EOFY Employer Reporting. Just click the button above.

Regards,
Your Suntax Team

 

The promise of cost-of-living relief has been delivered via the budget on Tuesday as Treasurer Jim Chalmers announced a second consecutive surplus with this years expected $9.3 billion. This is the first time in almost 2 decades two consecutive surplus budgets have been delivered.

Starting July 1, 2024, the Victorian Government has implemented a set of substantial tax cuts with the objective of strengthening economic growth, influencing investments, and easing financial burdens for both individuals and business.

The focus of our summary is on the key tax related announcements of the budget.

The Federal Budget update included changes to several tax measures that had previously been announced and implemented, including:

Stage 3 Tax Cuts 

Under the Changes: 

  • A reduction to the 19% tax rate to 16% for incomes between $18,201 – $45,000.
  • A reduction to the 32.5% rate to 30% for incomes between $45,001 and $135,000.
  • An increase in the upper threshold for taxpayers in the 30% bracket from $120,000 to $135,000.
  • For taxpayers in the 45% tax bracket an increase to the threshold to $190,001.

Please refer to the below table summary of changes

Table Source: taxcuts.gov.au

What does this mean for you? 
All Australians will get a tax cut, but for many on higher incomes (>$160,000) this will be a smaller tax cut than they were expecting, based on the original proposed tax cuts. With the implemented changes you will see an increase in your take home pay each pay cycle from 01 July 2024.

By way of example of the reduction in tax you will pay, if you earn $73,000 annually you will receive a tax cut of $1,504.

Increased Medicare levy low income thresholds
Singles, families, seniors and pensioners benefited from an increase in the Medicare levy low-income threshold amounts that were announced on January 25, 2024.

The new thresholds to provide cost-of-living relief were enacted by the Treasury Laws Amendment (Cost of Living – Medicare Levy) Act 2024.

Changes to the Medicare levy Threshold include:

  • The Medicare levy low-income threshold for singles has been increased to $26,000 for 2023-24 (up from $24,276 for 2022-23) from 2023-24 income year,
  • For couples with no children, the family income threshold is $43,846 (up from $40,939 for 2022-23)
  • The additional amount of threshold is $4,027 for each dependent child or student (up from $3,760)
  • For single seniors and pensioners eligible for the Seniors and Pensioners Tax Offset (SAPTO), the Medicare levy low-income threshold is $41,089 (up from $38,365).

Other Key Measures announced on Tuesday, in the 2024-2025 budget

Amended Tax Law – Tax refunds to offset old debt
In the recent federal budget update, where the commissioner had put on hold an old tax debt released prior to 1st January 2017, the Government has proposed to amend the tax law to essentially quarantine any debt prior to that taken from being offset by future refunds.
It will continue to maintain the Commissioner’s current approach and will apply to individuals, small businesses and not for profit organisations.

HECS-HELP Debt Reduction Changes 
To implement the first stage of reforms to Australia’s tertiary education system. The Government announced funding by:

  1. Limiting the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index.
  2. Introducing a ‘Commonwealth Prac Payment of $319.50 per week, for tertiary students undertaking supervised mandatory placements – for example nurses or teachers. The aim of this additional payment is to reduce the financial burden on those students that are ‘required’ to take up these placements and to encourage and retain more enrolments in such courses.

Support for Small Businesses – Extension to the temporary increase to the instant asset write off
The Government has announced a temporary extension of the instant asset write off by an additional 12 months to June 30, 2025 for Small business with an annual turnover of less than $10 million. Under this scheme, the $20,000 threshold is applicable to each individual asset, enabling small businesses to instantly write off multiple assets. This is yet to be passed as law. It is anticipated that the threshold will reduce back to $1,000 from the 1st July, 2025.

Paid Parental Leave PLUS Superannuation
Currently, the Government funds a Paid Parental Leave (PPL) scheme that is not subject to super contributions. In the update it was announced that eligible parents on Commonwealth- government Paid Parental Leave will be subject to superannuation guarantee contributions of up to 12%. This will be for babies born, or adopted on or after July 1, 2025.

Unpaid Super Entitlements
From 1 July 2024, The Fair Entitlements Guarantee Recovery Program will actively pursue unpaid superannuation entitlements owed by employers who have entered or currently in liquidation or bankruptcy.

This is a very aggressive undertaking by the Government but we feel is justified.

Business Activity Statement ‘BAS’ refunds
Aimed at bolstering the Australian Taxation Office’s (ATO) capacity to combat fraud, the notification period for taxpayers regarding the retention of BAS refunds, Which is currently set at 14 days, will be prolonged to 30 days to match the time limits for non-BAS refunds. These changes will be implemented at the onset of the first financial year following the Royal Assent of the enabling legislation.

Building Cyber Resilience
With the ever increasing instances of cyber attacks and digital fraud, the Government will provide aid to every small business to enhance their cyber resilience, offering guidance on preparation, response, and recovery through initiatives that will include
– Cyber Warden programs,
– Resilience Services, and
– Cyber Health Checks.

Foreign resident CGT Regime

The foreign resident CGT regime will be tightened for CGT events commencing on or after 1 July 2025. This move aims to ensure that foreign residents fulfil their tax obligations in Australia fairly while providing clearer guidelines on how the rules operate.
The proposed amendments will come into effect for CGT events occurring on or after 1 July 2025. These amendments will:
  • Expand and clarify the range of types of assets subject to CGT for foreign residents.
  • Replace the point-in-time principal asset test with a 365-day testing period.
  • Mandate that foreign residents notify the ATO before executing transactions involving shares and other membership interests exceeding $20 million in value
Your Suntax Team

FREE DOWNLOAD!

Self Managed Superannuation Funds Corporate VS Individual Trustee

Do you want to choose how you invest and strategically manage your retirement funds?

There are a number of benefits of owning a Self-Managed Superannuation Fund (SMSF). This all begins with selecting the right type of trustee to fit your circumstances. When you establish a Self-Managed Superannuation Fund(SMSF), a trustee is required to be appointed and can either be an Individual Trustee or a Corporate Trustee.

We hope you find our guide on Corporate VS Individual Trustees valuable in assisting you with your decision on owing a SMSF.

If you have any questions, please do not hesitate to give our office a call on 03 8746 7700.

 


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Xero announces Beautiful Business Fund to boost future aspirations of small business


Designed to celebrate small businesses, empower success and accelerate their growth. The Xero Beautiful Business Fund is offering NZ$750,000 in funding to Xero small business customers in Australia, New Zealand, Singapore, South Africa, the United States, Canada and the United Kingdom.

There are 4 categories in seven countries and no limit on how many you can enter.
Think you qualify for all categories? Apply for all four!

  • Innovating for sustainability: How is your business taking the next step on your sustainability journey?
  • Trailblazing with technology:  How is your business seeking to innovate and set pace with technological advancements?
  • Strengthening community connection: How is your business striving to give back to your community?
  • Upskilling for the future: How is your business thinking ahead and preparing for the future?
Click here to view everything you need to know about the Xero Beautiful Business Fund
 

For each category, there will be seven regional winners identified by a regional judging panel. The pool of regional winners in each category will then be evaluated by a global judging panel and the winner of each category will receive an additional global prize.

Xero has made applying for the Xero Beautiful Business Fund easy! Follow the below simple steps for each category you’d like to apply for:

  1. Shoot a 90 second pitch video for your organisation (Xero even has a application video filming guide!)
  2. Upload the video to the dedicated Xero website
  3. Fill out the short application form
Applications close on 6 October 2023.

Good luck! We would love for one of our amazing Suntax small business clients to win funding from Xero.

Regards,
Your Suntax Team


It’s time to process your Taxable Payment Annual Report (TPAR)

If your Business employs contractors and is in the below list of industries, you must lodge your Taxable Payment Annual Report (TPAR) by the 28th of August 2023.
Businesses directly involved in the following services need to lodge TPARs:

  • Building and Construction Services
  • Cleaning Services
  • Courier or Road Freight Services
  • Information Technology Services
  • Security, Investigation and Surveillance Services

There are two ways you can finalise your Taxable Payment Annual Report.

Option 1: The Easy Way
Let Suntax complete your Taxable Payment Annual Report for you

The cost to prepare your Taxable Payment Annual Report is $220 plus GST.  If you choose this option, you do not need to read this newsletter any further.

Click here for Suntax to prepare your Taxable Payment Annual Report 

Option 2: Complete the Taxable Payment Annual Report yourself using the ATO supplied instructions below

By using the instructions below as supplied by the ATO you can complete your Taxable Payment Annual Report yourself.

ATO Instructions on how to complete independently

IMPORTANT NOTE: The processing of your Taxable Payment Annual Report is something the ATO will pursue if not lodged by the due date of August 28th.

Regards,
Your Suntax Team


Xero has two versions of their reports an old and a new version. On 31st July 2023 Xero are switching to the new reports only. Please note NO data will be lost!

Reporting is one of Xero’s most loved products and a core part of the Xero platform. All software has a lifecycle, the older it becomes the more challenging it gets to maintain it. For Xero reporting it was time for an upgrade.

If you are currently using the old version of reports Xero are encouraging you to switch to the new ones so you get familiar with them before the old versions are retired on the 31st July 2023.

If you are using an old report and the newer version is available you will see a message prompting you to switch to the new report.

What is going to happen from the 31st of July 2023? 
  • You won’t be able to run Xero old reports
  • Any saved drafts of old reports will be removed from Xero
  • You’ll have read-only access to old published and archived reports

There are some reports and features Xero won’t retire on 31 July 2023 as they are upgrading them in a different way or at a later date. These include:

  • GST Return
  • GST Reconciliation report
  • Budget Manager
  • Budget Summary report
  • Expense Claim Summary report
  • Foreign Currency Gains and Losses report
  • Inventory Item Summary report
  • Sales by Item report
  • Tracking Summary report
  • Unrealised Gains and Losses report
  • Reporting API (please note this is not a report)
Be prepared before the end of July

If you wish to use the new reports as they are you simply just need to open the report and get started. If the report is more complex you can check our Xero’s steps for getting started with new reports.

For July’s reporting you will be required to do your end of month reporting in the new reports as the old version will not be available.

Click here to watch Xero’s YouTube Video on how easy it is to move your work across.

How do I use the new reports?

On the right hand side of your screen panel you will see Xero’s Tips and Tricks. Here you will find links to support articles, how-to videos and a feedback button on the new reports.

Xero Central contains an abundance of helpful information, search for a particular report here or you can check our Xero’s YouTube for the playlist of reporting videos.

Lastly you can register for a live webinar on reports.

As always, we are here to help if you need any assistance.

Regards,
Your Suntax Team

 

Source – Xero Central. 

It’s time to process your EOFY Payroll using Single Touch Payroll (STP).

Employees now access their Income Statements (previously known as Payment Summary or Group Certificate) through their personal MyGov account.  This happens after you have completed your Single Touch Payroll processing.To finalise your Single Touch Payroll in Xero you need to complete your End of year Employer Reporting.  There are two ways you can do this:

Option 1: The Easy Way
Let Suntax complete your Employer Reporting for you.  

The cost to prepare Employer Reporting will be as follows:

  • STP Finalisation – $125 + GST and $21 + GST per employee
  • Annual Workers Compensation – Declaration of Rateable Remuneration
    • $85 + GST if we are completing STP Finalisation
    • $190 + GST  if we are not completing STP Finalisation
  • Payroll Tax Annual Reconciliation – $250 + GST per state reconciliation
If you choose this option, you do not need to read this post any further.

Request Suntax to complete STP Finalisation

 Option 2: Complete the Employer STP Finalisation Yourself

 

Step 1 – Complete the Instructions on the Xero Payroll Checklist 

Step 2 – Workers Compensation Annual Declaration of Rateable Remuneration

At the end of each financial year, employers are required to declare their total rateable remuneration to their Workers Compensation insurer and an estimation of the following year’s remuneration.  If you employ staff in various states, you may be required to hold a workers compensation policy for each state.  Please let us know if you would like assistance with this.

If you are registered for Workers Compensation, your insurer will issue a Tax Invoice shortly after the end of the financial year.  This tax invoice will provide details on how to access your online account if you haven’t done so already.  By logging onto your online account, you can make the declaration online.

If you only employ staff in Victoria, here is a link to assist you in calculating your remuneration:   Remuneration inclusions and exclusions

Or, if you would like further information about Workers Compensation Insurance in Victoria, click on this link:  More Information about Victorian Workers Compensation Insurance

Step 3 – Payroll Tax Annual Reconciliation (if applicable)

Payroll tax is a state government imposed tax with varying thresholds and rates for each state.  If you employ staff in multiple states and you need advice on your payroll tax status, please contact us.  If you only employ staff in Victoria and your total wages plus superannuation exceeds $900,000, then you will be required to register for Payroll Tax.

At the end of each financial year, if you are registered for Payroll Tax, you are required to submit an Annual Reconciliation.

What’s changing in FY2023/24

The Fair Work Commission (the Commission) has announced:

  • The National Minimum Wage will be increased to $882.80 per week or $23.23 per hour
  • a 5.75% increase to minimum award wages.

The increase applies from the first full pay period starting on or after 1 July 2023.

These changes will apply to pay runs with a payment date of 1 July 2023 onwards.

We know it has been another year of challenges and EOFY can be a particularly hectic time, so if these steps seem too onerous or time consuming please remember we have a team at the ready to process your EOFY Employer Reporting. Just click the button above.

Regards,
Your Suntax Team

 

If you have worked from home in the last financial year, there have been changes to the way you can claim your Working From Home (WFH) tax deductions.

  • From 01 July 2022 – 28 February 2023 – The ATO will accept a record of the number of hours worked from home through a representative 4 week period to estimate the total of hours worked.
  • From 01 March 2023 – you are required to have recorded every hour you have worked from home by keeping a WFH diary.

The ATO has changed the way WFH deductions can be claimed. They now fall under two categories.

  1. The Fixed Rate (67c per hour) Method, this is likely to result in lower tax refunds as this method does not allow  you to also claim internet, mobile, stationery and computer consumables 
  2. The Actual Cost Method, requires a calculation of your WFH deduction based on your actual electricity, gas, mobile phone, internet and other work related expenses.

To ensure we can calculate the most tax effective result for you, we will need you to add up your gas, electricity, phone and internet bills for the year and provide the hours you have worked from home.

We look forward to seeing you soon,

Your Suntax Team

 

Sunbury Essendon