A new financial year is almost upon us and naturally, this is the time where new regulations, legislations and changes are introduced by the government that involve the business realm.
Interested to see what’s new, what’s changed and how these accounting updates may affect you?
Find out with the Gold Coast Accounting team at Crest below.
Get ready for super changes from 1 July 2022
As the new financial year approaches, employers need to be aware of two important super changes.
From 1 July 2022, employees can be eligible for super guarantee (‘SG’), regardless of how much they earn, because the $450 per month eligibility threshold for when SG is paid has been removed.
Employers only need to pay super for workers under 18, when they work more than 30 hours in a week.
Furthermore, the SG rate will increase from 10% to 10.5% on 1 July 2022. Employers will need to use the new rate to calculate super on payments made to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July. Employers should update their payroll and accounting systems to ensure they continue to pay the right amount of super for their employees.
Employers need to prepare for changes under STP expansion
Single Touch Payroll (‘STP’) reporting has been expanded.
This expansion, known as ‘STP Phase 2’, means that employers will need to start reporting extra information to the ATO each time they run their payroll.
Some digital service providers (‘DSPs’) needed more time to update their products and applied for deferrals, which cover their customers – therefore, when an employer can start Phase 2 reporting depends on when their payroll product is ready.
Employers that have not already started Phase 2 reporting should ask their DSP when their product will be ready (if they don’t already know).
Employers need to be across the changes and get ready to start Phase 2 reporting. This includes:
- checking if changes need to be made to payroll pay codes/categories so they align with Phase 2 requirements;
- reviewing allowances employers pay and how they need to be reported in Phase 2;
- understanding changes to salary sacrifice reporting; and
- understanding how to assign an income type to each payment.
The ATO is also reminding employers that amounts paid to ‘closely held payees’ should now be reported through STP. A ‘closely held payee’ is an individual directly related to the entity they receive payments from. For example, family members of a family business, directors or shareholders of a company and beneficiaries of a trust.
There are concessional reporting options for closely held payees reporting which include the following:
- Reporting actual payments on or before the date of payment (along with arm’s length employees).
- Reporting actual payments quarterly.
- Reporting a reasonable estimate quarterly
ATO warns about GST fraud
Taxpayers are being warned to be on the lookout for dodgy online ads, often on social media platforms, promising easy GST refunds.
The ATO recently issued a media release about large-scale GST fraud attempts exceeding $850 million, that involve customers setting up an ABN without operating a business, and then submitting fictitious BAS statements to get a GST refund.
The ATO said it has already successfully stopped $770 million in attempted fraud before payment.
“The people who are involved in these activities aren’t accidentally ticking a box on an online form. They’re signing to say that they’ve set up an ABN for a business that doesn’t exist, then lodging a BAS with false information on it, to receive GST refunds that they are not entitled to,” the ATO said.
Crest Accountants are here for you
Are you confused or concerned about any of the above or other industry updates that might affect you and your business?
Don’t worry, because the team at Crest Accountants are here to help and guide you along the way.
Contact Crest Accountants today for personal and business accounting advice and services made simple.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.