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 in finding out about any new industry updates that may affect you?
Read more from the Gold Coast accountants at Crest to find out what’s new.
What’s new for the Director Identification Number legislation
The new Director Identification Number (DIN) system is almost ready to be rolled out across the board. The DIN system will see all directors confirming their identity, with a unique identifier for each person who consents to being a director.
This legislation, passed without amendment in June 2020, will be operated by the ATO, in a bid to improve transactional activity between businesses and the government, and increase the accountability of corporations.
So, let’s take a look at what it’s all about and how it may affect you:
- The Director Identification Number system will be rolled out with a vision to create a central Commonwealth Business Registry.
- The legislation aims to combat ‘phoenixing’, where companies are liquidated or abandoned to deliberately dodge debts and/or liabilities.
A Director Identification Number will stay with a director throughout their lifetime, even if they cease to be a director in the future.
Want to find out more? Consult with your business accountant to clarify your obligations.
The ATO is targeting late paid super and other super updates
Take note: The ATO is targeting late paid super.
Think you’re safe? Think again:
- Historically unpaid super reviews and audits have typically been triggered by employees making complaints to the ATO.
- With the introduction of superannuation clearing houses and Single Touch Payroll (STP), the ATO has increased data matching capabilities and we are seeing the ATO being more pro-active in contacting employers about unpaid super rather than reactive.
- Unless you are using the ATO Small Business Clearing House, super is deemed to be paid when the superannuation clearing house allocates the payment to the employees’ fund NOT when the funds have left your bank account.
- Some clearing houses take up to 14 days to allocate the payment to the employee’s member account.
- If the super clearing house has not disbursed the payment to the employee’s member account by the 28th day following the end of the quarter, you are required to lodge a superannuation guarantee charge (SGC) statement by the 28th day of the following month.
What happens if super remains unpaid or you don’t pay super or lodge a SGC statement on time:
- Previously exempt earnings (like overtime) may become subject to SGC.
- Interest accrues until the SGC statement is lodged!
- Part 7 penalty can be as high as 200% of the SGC payable.
- SGC is not tax-deductible.
- Super paid late is not tax-deductible.
- You may be held personally liable for unpaid super & SGC.
- This is a significant risk for employers and for some employers this could possibly result in bankruptcy. Take action now and make sure you are complying with your superannuation obligations.
What else is new with super?
Let’s take a look:
- From the 1st of July 2021, the super guarantee rate will rise from 9.5% to 10%.
- This means businesses with employees will need to ensure their payroll and accounting systems are updated to incorporate the correct super guarantee increase.
- As part of the 2021–22 federal Budget, the Australian Government announced it will remove the $450 per month threshold to expand coverage of super guarantee to eligible employees regardless of their monthly pay (this measure is not yet law).
As always, talk to your Gold Coast accountant about meeting your superannuation obligations as an employer, or your super contributions and options as an employee.
Time is running out to confirm your 2019-20 income
If you received Family Tax Benefit (FTB) in the 2019-20 financial year, the deadline to confirm your income is 30th June 2021:
- Any top ups and supplements may be missed out on if your family income isn’t confirmed by 30th June 2021. Fortnightly payments may be stopped and/or you may receive a debt from Services Australia.
- Even if you received FTB for part of the 2019-20 financial year, it still needs to be confirmed, including your partner’s income.
- Lodgement deferrals do not alter this requirement.
Already lodged your 2019-20 tax return with the ATO? The details would have been sent automatically, so there’s nothing more you need to do.
Are you currently receiving Child Care Subsidy? You and your partner must lodge your 2019/20 individual tax returns by 30th June 2021, too.
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.