As a business owner there are many obligations that you need to consider and action after 30 June. We have outlined these key areas for this financial year below to assist you:
- Brief summary of key dates and actions
- Key changes you need to be aware of
Please carefully consider this information and contact us if you have any questions we can answer or if there is anything we can assist you with.
Brief summary of key dates and actions
| 1 July 2023 | Employee Superannuation Rate: Super guarantee (SG) rate increases from 10.5% to 11%. Small Business Instant Asset Write-Off: This commences for asset purchases of less than $20,000. Minimum Wage Increases for 2023/24 announced |
| 14 July 2023 (on or before) | Single Touch Payroll Finalisation Declarations need to be made by 14 July 2023. Fringe benefits of more than $2,000 provided to employees need to be included in the STP Finalisation Report. |
| 28 July 2023 | Quarterly super guarantee payment due (1 April – 30 June 2023). |
| 28 August 2023 | Taxable payments annual report (TPAR) due for payments to Contractors. |
Key Changes to be Aware of
Superannuation Guarantee Increases to 11%
From 1 July 2023, the Superannuation Guarantee rate will increase from 10.5% to 11%. It is planned to increase by 0.5% each year until it reaches 12% on 1 July 2025.
If any employees are paid on a “total remuneration” basis (a package inclusive of superannuation), this will mean that their take home pay will reduce by 0.5% unless the employer decides to increase their total remuneration by 0.5%.
For employees who are paid wages or salary plus superannuation, then their take home pay will remain the same and the 0.5% increase will be added to their superannuation payments.
Minimum Wage Increases for 2023/24 Announced
The Fair Work Commission has handed down their decision in relation to minimum wage increases.
From 1 July 2023, wages will increase as follows:
- Minimum wage for award-free employees will be $23.23 per hour or $882.80 per week (an increase of $70.20 or 5.75%).
- Minimum award rates for award-covered employees will also increase by 5.75%.
The new National Minimum Wage will apply from the first full pay period starting on or after 1 July 2023. This means if your weekly pay period starts on Monday, the new rates will apply from Monday, 3 July 2023.
It is time to update your pay practices – and don’t forget to check employees on annualised salaries. With such a large award increase, annualised salaries may no longer cover award entitlements.
Also, when considering salary reviews for your employees, you will need to consider the employee super payments increasing from 10.5% to 11% from 1 July 2023.
Cryptocurrency
The Australian Taxation Office (ATO) is concerned that many taxpayers believe their cryptocurrency gains are tax free or only taxable when the holdings are cashed back into Australian dollars.
Gains from cryptocurrency are similar to gains from other investments, such as shares. Generally, as an investor, if you buy, sell, swap for dollar currency, or exchange one cryptocurrency for another, it will be subject to capital gains tax (CGT) and must be reported. CGT also applies to the disposal of non-fungible tokens (NFTs).
It is vital that you keep good records of your cryptocurrency exchanges. The ATO has access to the data from crypto platforms and banks and is running data matching to ensure tax is paid on all crypto gains.
The tax laws are complex on this area – so please contact us to ensure you receive the right advice.
Temporary Full Expensing Replaced with $20,000 Instant Asset Write-Off
The unlimited tax deduction for purchases of business assets known as Temporary Full expensing finishes on 30 June 2023.
From 1 July 2023, assets costing less than $20,000 can be instantly written off. Assets costing more than $20,000 will need to be depreciated.
Important: If you have claimed the full cost of an asset – for example a motor vehicle – in a prior year using temporary full expensing, when you sell it in the future you will have the full value of its sale price included in your taxable income for the year.
This content has been prepared by Wilson Pateras to further our commitment to proactive services and advice for our clients, by providing current information and events. Any advice is of a general nature only and does not take into account your personal objectives or financial situation. Before making any decision, you should consider your particular circumstances and whether the information is suitable to your needs including by seeking professional advice. You should also read any relevant disclosure documents. Whilst every effort has been made to verify the accuracy of this information, Wilson Pateras, its officers, employees and agents disclaim all liability, to the extent permissible by law, for any error, inaccuracy in, or omission from, the information contained above including any loss or damage suffered by any person directly or indirectly through relying on this information. Liability limited by a scheme approved under Professional Standards Legislation.
