It’s that time again! Time to examine updates in the Australian accounting spheres.
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.
Update on the gig economy reporting regime
The gig economy refers to short-term contracts and freelance work as opposed to the traditional, permanent jobs. Think food delivery and rideshare drivers, creative workers like graphic designers, web developers and freelance writers, and even pet sitters.
Participants within the gig economy will no longer be able to dodge their tax obligations, as the Australian government looks to legislate a new, compulsory reporting system.
What does this mean?
- Reporting all transactions to the ATO, likely on a biannual basis.
- The first target is ride-sourcing and short-term accommodation services, which will be required to report from the 1st of July 2022. From there, all other share economy transactions will need to do the same from 1st of July 2023.
- It’s inclusive of those who use electronic platforms that make supplies available to an end-user consumer through websites, internet portals, app, gateway, store or marketplace.
According to Tony Greco of The Institute of Public Accountants:
“Participants will have nowhere to hide once the reporting regime takes hold which will lead to a level playing field with other sources of income such as wages.”
Reminders for employers: Super Guarantee contributions & STP reporting
The Super Guarantee contribution (SG) refers to compulsory superannuation contributions made by employers on behalf of their employees. The rate is currently 10% of your agreed base salary.
If you’re an employer, these contributions where due on the 28th July. If these have not been logged, you will need to lodge a super guarantee charge form.
If you’re in business, you know time wasted also equates to money wasted. Many employers hate the thought of payroll reporting, but luckily there’s an easier way.
Single Touch Payroll (STP) to the rescue:
- STP started on 1 July 2018 for employers with 20 or more employees and 1 July 2019 for employers with 19 or fewer employees and is a mandatory obligation.
- When you switch to STP, you can automatically submit all of your employee payroll information as it’s filed.
- STP automatically reports everything from salaries and wages, to tax, PAYG withholding, superannuation and super liability information.
Haven’t made the switch yet? You need to. Talk to your Gold Coast Accountant about doing so.
Reminder of superannuation caps indexation for 2022
From 1 July 2021, the superannuation contributions caps have been indexed for the 2022 income year.
The new concessional contributions cap for the 2022 financial year is now $27,500 (increased from $25,000).
The new non-concessional (i.e., non-deductible) contributions cap for the 2022 financial year is now $110,000 or (where the ‘bring forward’ rules are applicable) $330,000 over three years (increased from $100,000 or $300,000 respectively).
The CGT cap amount for the 2022 financial year is now $1,615,000 (increased from $1,565,000).
What’s new in insurance?
Before, employers could log into their WorkCover Connect accounts simply with their policy number. This feature has recently been removed, which means employers are required to register for a WorkCover Connect account if not done already.
Talk to your Gold Coast insurance specialist about renewing your policy and the key dates for policy renewal and declaring wages.
Tax on JobKeeper
A reminder for employees – JobKeeper shows under the Allowance section on your payment summary. As such, your JobKeeper payments will be taxed.
Help for Queensland businesses
2021 COVID-19 Business Support Grants for lockdown-impacted businesses in Queensland
$5,000 grants will be made available to small and medium businesses across Queensland affected by the COVID-19 lockdown that commenced on Saturday 31 July 2021 and lockdowns in other states.
To find out more information about this grant see our latest blog – click here.
The Business Boost Grant – apply now
The Queensland government launched The Business Boost grants program to provide support to businesses with the aim to advance improvements in their operational efficiency and productivity.
Funded activities are split into 3 project areas:
- Future planning
- Specialised and automated software
- Staff management, development and planning.
As a small business, you may be eligible to receive a grant payment of $15,000 (excluding GST).
Find out more information and ask for assistance with your application with your Gold Coast business accountant.
Support for New South Wales businesses
There’s some good news for our southern neighbours, with Prime Minister Scott Morrison announcing NSW businesses to receive up to $10,000 per week. This support measure is modelled on 2020’s cash flow boost payment and will go for as long as Greater Sydney’s lockdown requires. The disaster payments for workers have been increased, too.
To find out about all of NSW grants, loans and financial assistance – click here.
Need help with your examining, keeping compliant and understanding your personal or business accounting requirements?
Contact Crest Accountants today for a team of local Gold Coast accountants who are dedicated to helping you.
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.