The start of the new 2022/23 financial year is just days away. And with the new year comes new changes and obligations. It’s also time to start wrapping up and reporting on what happened in the previous year.
Here’s some of the important things you need to know, and do, in the new financial year.
Changes to Superannuation Guarantee Obligations
There are important changes to Superannuation Guarantee obligations that will take effect from 1 July 2022.
- the rate of compulsory superannuation contributions is increasing from 10% to 10.5%.
This means that from 1 July all super guarantee contributions that you make on behalf of your employees will need to be made at the new rate of 10.5%.2 - the $450 per month eligibility threshold for when superannuation guarantee is paid is being removed.
This means that from 1 July 2022, potentially all your employees can be eligible for superannuation guarantee payments, regardless of how much they earn. As a result, you may have to pay superannuation guarantee for the first time for some, or all, of your employees.
Check out our recent article Are You Ready for the Super Changes on 1 July 2022? for more information about what employers need to know and do to ensure you are ready, and remain compliant with your Superannuation Guarantee obligations, after 1 July 2022.
Single Touch Payroll – Finalisation Declaration and Phase 2
End-of-year finalisation declarations for Single Touch Payroll (STP) are due 14 July each year.
It is important that the finalisation declaration is completed promptly to ensure that your employees can access their information in order to complete their tax returns.
You can finalise your data earlier if it’s ready. If you can’t make a finalisation declaration by the due date, you will need to apply for a deferral.
For large and small employers with closely held payees, the due dates vary to that noted above, so make sure that you speak with your accountant to ensure you are clear on your specific obligation deadlines.
The STP system is currently in the process of expanding to include/report additional information. This transition is known as STP Phase 2. It is important to be aware of the coming changes and what your business needs to do to remain compliant and ensure that it is meeting its STP reporting requirements.
For the most part, the responsibility for the transition lies with the digital service providers (DSP). That is the electronic systems or platforms that are used to record, process and report your payroll.
The start date for STP Phase 2 was 1 January 2022, however many DSPs have requested a deferral for more time to get ready and transition their customers. It is important that you pay attention to any communication from your DSP in regards to the timeline for your transition as once your product is ready for STP Phase 2 you are expected to commence the new reporting requirements and obligations. You can apply for a delayed transition to STP Phase 2 reporting if you feel you need more time.
The ATO has prepared a handy Employer STP Phase 2 checklist to highlight the things you should check and be aware of in order to prepare for the upcoming changes and transition.
One of our tax accountants, in combination with your DSP, can help to ensure that you are ready to meet your new reporting obligations under STP Phase 2. You just have to ask!
NSW Annual Payroll Tax Reconciliation due 28 July
For NSW based businesses, your annual payroll tax reconciliation is due 28 July 2022. It is important to take action to complete your reconciliation before the deadline.
Notably, eligible businesses may be entitled to a 50% reduction on their payroll tax bill for the 2021/22 financial year.
Payroll tax customers who were eligible for a 2021 COVID-19 Business Grant or JobSaver payment and whose total grouped Australian wages for the 2021/22 financial year are $10 million or less, will have their annual tax liability reduced by 50 per cent when they lodge their 2022 Annual Payroll Tax Reconciliation online.
Customers with total grouped wages of $10 million or less, who did not receive a 2021 COVID-19 Business Grant or JobSaver payment, may still be eligible for the 50 per cent reduction if they are able to demonstrate that they have experienced a 30 per cent decline in turnover during a minimum 14-day period during the ‘Greater Sydney lockdown’ (26 June to 30 November 2021) compared to the same period in 2019 or 2020.
Contact the team at The Quinn Group as soon as possible to discuss finalising your payroll tax reconciliation and eligibility for the 50% reduction.
Taxable Payments Annual Report (TPAR) due 28 August
Businesses and government entities who make payments to contractors within a financial year may be required to report these payments and lodge a Taxable Payments Annual Report (TPAR) with the ATO.
Under the TPAR requirements, contractors can include subcontractors, consultants and independent contractors. They can operate as sole traders (individuals), companies, partnerships or trusts.
Businesses providing services such as building and construction, cleaning, road freight and courier, information technology and security and surveillance services may need to lodge a TPAR.
If your business is required to lodge a TPAR for the 2021/22 financial year, it must be lodged by 28 August 2022.
Speak with the team of tax accountants at The Quinn Group for advice and assistance with assessing your TPAR obligation and, if required, preparing the lodgement.
Ask for Help and Stay on Top of Things!
There is definitely plenty to keep us all busy as we dive into the start of the new 2022/23 financial year. Make sure to get in touch with the team at The Quinn Group for any help you might need with changes to superannuation contributions, STP, Payroll Tax, TPAR or any other business accounting and taxation needs. We’re here to guide and advise you through the complex maze of lodgements, payments and obligations when it comes to tax, accounting and running a business. Get in touch by completing an online enquiry or call us on +61 2 9223 9166.
