xero user

Super payment due dates

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You must pay super for eligible employees

An employee’s fund must receive their super payments on or before the quarterly super due dates.

To avoid the super guarantee charge (SGC), payments must be received by the employee’s fund on or before the quarterly super due dates.

Payments can be made at least 4 times a year. This applies from the day employees start working for you. Payment due dates occur quarterly.

Quarterly super payment due dates

 
Quarter Period Payment due date
1 1 July – 30 September 28 October
2 1 October – 31 December 28 January
3 1 January – 31 March 28 April
4 1 April – 30 June 28 July

When a super due date falls on a weekend or public holiday, your contribution must be received by the fund on or before the next business day.

You can also make payments more frequently than quarterly, for example fortnightly or monthly. If you do, ensure you pay your total super guarantee (SG) contribution for the quarter by the due date.

If you have missed the quarterly payment due date or made late super payments, you will need to lodge a SGC statement and pay the SGC to us. The missed or late super payments are no longer tax deductible.

Clearing houses

A clearing house distributes super contributions to your employees’ funds on your behalf.

SG payments made to a commercial clearing house before the SG due date may not reach the super fund until after the due date.

Your employee’s super contribution is only considered ‘paid’ on the date it’s received by the super fund. Not the date it’s received by the clearing house.

Note: It’s important that you leave enough time for your SG payments to reach the super fund and allow for their processing timeframes.

However, if you use the ATO’s Small Business Superannuation Clearing House, payments may be considered ‘paid’ on the date they’re received.

Check the processing timeframes required by your clearing house to ensure your payments will be processed before the payment due dates.

Related reading

Changes in the Small Business Super Clearing House

Due date considerations

Some super funds, awards and contracts require you to pay super more regularly than quarterly.

Meeting the SG contribution payment dates does not ensure compliance with other super funds, awards and contracts.

You should check the contractual obligations you have with your super fund, award or contract to ensure super contributions are paid on time.

Need payroll help for your business?

Notch Above Bookkeeping are Certified Xero bookkeepers offering agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero payroll services and get in touch on 1300 015 130 to discuss the plan which best suits the needs of your business.

Source: ATO

july written in sand

Changes to your pay as you go withholding cycle

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Your pay as you go (PAYG) withholding cycle may change from 1 July

The ATO reviews PAYG withholding cycles every year, basing reviews on a business’s annual withholding amount.

The ATO writes to employers and tax agents in April to advise if a PAYG withholding cycle is changing. If affected, your reporting and paying obligations will change from 1 July.

Your new withholding reporting and payment cycle will be based on the amount you withheld and reported under your Australian Business Number (ABN) in all branches in 2022-23.

Medium withholders

You’re classified as a medium withholder if you withheld from $25,001 up to $1 million.

You’ll need to:

  • report your PAYG withholding amounts on your activity statement monthly
  • pay by the monthly due date
  • check that your stated withholding matches the amounts you reported using Single Touch Payroll (STP).

Large withholders

You’re classified as a large withholder if you withheld more than $1 million. You’ll get a new Payment Reference Number (PRN) to quote when you pay on the set payment dates.

You’re not required to report PAYG withholding on your activity statement. You should still reconcile your reported STP and paid amounts.

Changing your withholding reporting and payment cycle

You’ll need to make the changes to your payroll software before 1 July, to align your withholding reporting payments with the new due dates.

You can ask to stay on your existing cycle if you estimate your 2024-25 PAYG withholding amount will be less than the relevant threshold.

To do this, submit a completed Request to review ATO initiated PAYG withholding cycle change form within 21 days of receiving an ATO letter. Provide the reason for your request. This should include your change in circumstances and the estimated amount you expect to withhold in 2024-25.

Need payroll help for your business?

Notch Above Bookkeeping are Certified Xero bookkeepers offering agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero payroll services and get in touch on 1300 015 130 to discuss the plan which best suits the needs of your business.

For more information, visit ATO annual review of PAYG withholding cycles and review your record-keeping practices.

Source: ATO

A Look into Xero Invoicing Updates

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Unlocking Enhanced Flexibility and Functionality

Xero has announced that they will be retiring the older version of their invoicing product ‘classic invoicing’ on 2 September 2024.

Xero teams are busy building a new invoicing product that is going to give users more flexibility and customisation in the future, with better checkout experiences and unlimited payment methods.

Building new features you love

There are so many great ideas about what invoicing features we’d like to see in Xero. Unfortunately, they can’t be rolled out in classic invoicing because of the limitations faced with the older technology (think of it like trying to plug an electric charger into a classic car).

The new invoicing solution is a flexible and scalable solution that’s built on the latest technology, so Xero can build the features you need now and in the future.  Some of the features being worked on at the moment include:

  • adding multiple delivery addresses on an invoice
  • requesting partial payments and deposits via invoicing
  • more customisation of invoicing templates and on repeating invoices
  • improved control and smarter scheduling of reminders
  • easier statement creation and statement payment capability.

The changes made so far (and what’s next)

In addition to this list of features exclusive to new invoicing, there are a number of features from classic invoicing that Xero is planning to bring across to the new version, many of which will be available before September.

So far, they have already introduced the following improvements to new invoicing:

  • Copy information from invoices to quotes
  • Option to ‘Create another invoice’ once an invoice is approved
  • Add ‘Reference’ when adding a payment without an extra click
  • Option to ‘Send receipt’ after a payment is added to an invoice
  • Quickly create and save a contact on the fly without extra clicks
  • View item code on the ‘View invoice’ page
  • Paste numbers with commas or dollar signs into line items
  • Delete line items in just one click.

Many of these changes are in response to feedback about the design and usability of new invoicing, and development teams are working hard to make sure these will improve processes and workflows.

There is plenty of time to keep exploring new invoicing, as new functionality is rolled out. Remember, you can keep switching between the two versions until classic invoicing is retired on 2 September 2024.

XERO TRAINING

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manufacturing

CSIRO ‘Innovate to Grow’ program

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Australia’s national science agency, CSIRO, is inviting small to medium enterprises (SMEs) working on advanced manufacturing solutions to apply for a self-paced, 10-week, online program that can help them turn an idea into an R&D opportunity.
Innovate to Grow: Advanced Manufacturing is open to SMEs working in the following sub-sectors:

  • Robotics
  • Additive manufacturing
  • Advanced materials and processes
  • Mechatronics design and engineering
  • Energy storage and battery technology
  • Sensing and detecting technologies
  • Natural products manufacturing
  • Biomedical manufacturing

Learn more and apply for the Innovate to Grow: Advanced Manufacturing program or discover more programs for SMEs.

Applications close on 12 May 2024.

‘Innovate to Grow’ was launched in 2020, and in just four years the free program has equipped over 500 SMEs with the knowledge and tools required to progress their research.

CSIRO recently announced a $20 million investment to provide SMEs with greater access to vital research and development (R&D) opportunities to accelerate their growth.

The funding will support an additional 600 SMEs through its Innovate to Grow program, kicking off with its Advanced Manufacturing cohort.

Source: CSIRO News

hiring

New rules for fixed term contracts

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Changes to fixed term contracts apply from 6 December 2023

Key points

  • From 6 December 2023, new rules apply when engaging employees on fixed term contracts
  • A fixed term contract terminates at the end of a set period (for example, the contract ends after a set date or period of time or a season). This includes contracts where the employee is employed for a specific period
  • The new rules include a requirement for employers to give any employees they’re engaging on a new fixed term contract a Fixed Term Contract Information Statement (FTCIS)
  • There are limitations on how fixed term contracts can be used
  • There are some exceptions to whom these limitations apply.

Other upcoming workplace law changes

There are other upcoming changes to the Fair Work Act, including:

  • changes to authorised employee deductions
  • the right to superannuation in the National Employment Standards.

Need payroll help for your business?

Notch Above Bookkeeping are Certified Xero bookkeepers offering agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero payroll services and get in touch on 1300 015 130 to discuss the plan which best suits the needs of your business.

Find out more at Fair Work Act changes: Protecting Worker Entitlements.

advice

Employer gender pay gaps published

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Improving workplace gender equality

Gender pay gaps for nearly 5,000 Australian private sector employers have been published for the first time.

The results show that:

  • 30% of employers have a median gender pay gap between the target range of -5% and +5%
  • 62% of median employer gender pay gaps are over 5% and in favour of men
  • The rest (8%) are less than -5% and in favour of women
  • Across all employers, 50% have a gender pay gap of over 9.1%.

It comes after Labor’s reforms passed the Parliament last year, a key driver for employer action to speed up progress to close the gender pay gap in the workplace.

The Minister for Women, Senator Katy Gallagher, said the publication of employer gender pay gaps is a pivotal moment for gender equality in Australia.

For all employers, the publication of their gender pay gaps and workforce composition is an opportunity to assess their performance on gender equality and take action to improve it.

There is significant variation in the gender pay gap across different industries, ranging from the Construction Industry where the mid-point employer gender pay gap is 31.8% to the Accommodation and Food Services Industry with a mid-point employer gender pay gap of 1.9%.

Who needs to complete an annual WGEA report?

All private sector businesses with 100 or more employees are required to complete their WGEA report between 1 April and 31 May of each year. The report must provide data from the previous year for the date ranges of 1 April through to 31 March.

For more information about who needs to report and how to complete the WGEA report, please click:

Even if your company has fewer than 100 employees, it is important to be proactive in identifying potential inequalities within the workplace. Conducting a payroll audit and internal salary benchmarking are important steps to take.

Need payroll help for your business?

Notch Above Bookkeeping are Certified Xero bookkeepers offering agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero payroll services and get in touch on 1300 015 130 to discuss the plan which best suits the needs of your business.

Companies’ gender pay gaps are available on the Workplace Gender Equality Agency website: WGEA Data Explorer | WGEA

australian flag

Get Set for Significant Changes from January 2024

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Australia’s Nationwide Changes in 2024

A Comprehensive Overview of Reforms and Impacts

From 1 January 2024, several changes have been implemented across the nation, bringing a mix of positive and negative impacts for various segments of the population.

New ‘Global Minimum Tax’

Australian-based subsidiaries of major multinational corporations are now subject to a minimum tax rate of 15%, marking a significant development in the ongoing efforts of the OECD to modernise the global business taxation framework.

$60 Toll Cap in NSW

NSW motorists using toll roads will face a weekly toll cap of $400, with a $60 maximum spend on tolls. The two-year trial, a key election promise of the Labor government, began on 1 January 2024, with rebates issued through Service NSW from April 2024.

Second Home Tax Hike Victoria

Victorians owning more than one home will experience a 10-year increase in taxes, introduced as a “temporary” measure to aid the state in paying down its Covid debt. Land tax changes, announced in May 2023, will impact roughly 860,000 landowners, with increased taxes based on land values.

Welfare Payments Increase

More than 936,000 Australians receiving youth, student or carer support will now experience a 6% boost in their payments due to indexation. This increase will positively impact various categories, including Youth Allowance, Austudy, Disability Support Pension for those under 21, and Carer Allowance, providing additional financial support to over 600,000 carers.

Easier for Seniors to Work

Seniors and veterans looking to work will experience a permanent increase in the Work Bonus limit by $4,000, from $7,800 to $11,800. This change allows pensioners to earn more income before their pension payments are affected.

Free Kindy in Queensland

Parents in Queensland have access to free kindergarten, providing cost-of-living relief for an estimated 50,000 additional families. This initiative, announced under former QLD Premier in June’s state budget, is set to cost the state $645 million over four years.

Disposable Vape Crackdown

In what is deemed the “toughest laws” globally, the importation of all disposable vapes containing nicotine was prohibited from 1 January 2024. The initiative aims to address the smoking and vaping habits of over 3.5 million Australians aged 14 and older, according to research released by Cancer Victoria in June.

This move, part of the most significant smoking reforms in a decade, restricts non-prescription vaping products. Only pharmaceutical vapes prescribed by a doctor and dispensed through a pharmacy will be legally permitted, with stringent limitations on packaging, flavours and potential extensions of workplace smoking bans to vaping.

$200 Help to Beat ‘Bin Tax’ Brisbane

Brisbane households can access a $200 rebate for installing insinkerators and waste dehydrators as part of the council’s Towards Zero Waste strategy. The initiative aims to help residents avoid the state government’s increased “bin tax” waste levy.

New Home Gas Ban Victoria

From 1 January 2024, new homes built in Victoria are prohibited from connecting to natural gas. This measure, introduced by former Victorian Premier Daniel Andrews, aims to lower annual energy bills by up to $1,000 while reducing household emissions. Incentives, such as solar panel rebates and interest-free loans for household batteries, will be provided to encourage the adoption of all-electric solutions.

Plastic Bags Banned, Again

Heavyweight plastic bags greater than 35 microns in thickness are banned in the ACT. This marks the next phase of the territory’s crackdown on single-use plastics, following the banning of various other plastic items.

All measures commenced from 1 January 2024. Looking for a Xero Certified Bookkeeper in Brisbane? Are you drowning in paperwork? Cash flow problems keeping you awake at night? Learn how Notch Above Bookkeeping can solve all these problems here or call us on 1300 015 130.

cryptocurrency

GST and using or receiving digital currency

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What to do when you receive and use digital currency as payment for goods and services

Digital currency as payment for goods and services

Receiving or using digital currency to pay for goods and services in your GST-registered enterprise is the same as using money, but it is different to trading digital currency.

Receiving digital currency

If you make a taxable supply and you receive digital currency as payment, the GST amount for that payment included in your business activity statement must be in Australian dollars.

Your tax invoice must meet the normal tax invoice requirements and include either:

  • the GST payable in Australian dollars
  • sufficient information to work out the GST payable in Australian dollars.

Examples of sufficient information includes the:

  • price expressed in Australian dollars
  • value expressed in Australian dollars, or
  • conversion rate used by the supplier, or a statement, to work out the GST payable if it is not in Australian dollars.

Using digital currency

If you use digital currency to make a purchase for your GST-registered enterprise and claim a GST credit, the GST amount of the credit in your business activity statement must be in Australian dollars.

To work out your GST credits, your tax invoice will include either:

  • the GST amount in Australian dollars
  • sufficient information to determine the GST amount in Australian dollars.

How to convert digital currency

To work out the value of your digital currency for your business activity statement, you must use the exchange rate on the conversion day that applies to you.

Exchange rate

If the exchange rate is in Australian dollars, you may choose to use the exchange rate:

  • from a digital currency exchange or website, or
  • agreed on between the supplier and the recipient.

If the exchange rate is in a foreign currency, you must convert the amount expressed in foreign currency to Australian dollars.

Conversion day

The conversion day is the date you use to convert your digital currency into Australian dollars.

If you account for GST on a non-cash basis, your conversion day is determined by whichever happens first of either the:

  • day you receive any of the payment
  • transaction date or invoice date.

If you account for GST on a cash basis, your conversion day can be the transaction date, invoice date or the day you receive any of the payment.

Looking for a Xero Certified Bookkeeper in Brisbane? Are you drowning in paperwork? Cash flow problems keeping you awake at night? Learn how Notch Above Bookkeeping can solve all these problems here or call us on 1300 015 130.