eofy 30 june

Review your EOFY employer tax and super obligations

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Are you an employer?

If you’re an employer, it’s time to review your end of financial year (EOFY) employer tax and super obligations.

As an employer, it’s important you keep on top of your payroll governance. This includes:

  • using your tax and super software to record the amounts you pay
  • withholding the right amount of tax
  • calculating super guarantee (SG) correctly.

As 30 June gets closer, check your employer reporting obligations, along with any upcoming key dates, including for:

  • Pay as you go (PAYG) withholding – From 1 July, the individual income tax rate thresholds and tax tables will change, which will impact your PAYG withholding for the 2025 tax year.
  • SG rate change – From 1 July, the SG rate will increase to 11.5%. Make sure you pay your SG contributions by 28 July in full, on time and to the right fund.
  • Single touch payroll (STP) reporting – Remember to make STP finalisation declarations by 14 July for all employees you’ve paid during the financial year. Make sure to:
    • check your employees’ year-to-date amounts are correct
    • ensure your declaration is for the 2023–24 financial year.

If you realise you’ve made a mistake, fix your STP data as soon as possible and re-finalise.

Remember to use good record-keeping practices and review your payroll policies and procedures to account for any changes that could impact your business.

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.

tradie

Changes to workplace laws

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Closing Loopholes

There have been changes to the Fair Work Act as part of the new ‘Closing Loopholes’ laws.

Key points

  • The Australian Government passed new workplace laws as part of its ‘Closing Loopholes’ legislation
  • The changes take effect at different times between December 2023 and August 2025
  • Some changes affect the work the Fair Work Ombudsman does
  • Other changes affect the work of the Fair Work Commission (the Commission). The Commission is the national workplace relations tribunal and registered organisations regulator.

Employers, employees and others should stay across these changes as they may impact their workplace.

Closing Loopholes changes

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Ensure super guarantee payments arrive on time

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Ensure Timely Super Payments by Verifying Clearing House Processing Times

Check your commercial clearing house processing times to ensure your super payments arrive on time.

As an employer, it’s important to check your clearing house processing times to help ensure you meet your super guarantee (SG) payment due dates. Processing times vary and some clearing houses can take up to 10 days to process payments.

The super contributions you make for your employees are only considered ‘paid’ when the super fund receives them, not when your clearing house receives them.

If the super fund receives your payment after the due date, you’ll need to lodge a super guarantee charge (SGC) statement and pay the SGC or penalties may apply.

Find out more information on super payment due dates.

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

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

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

1 July Changes

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Changes business owners need to know about

There are legal, financial, and other changes your business will have to be across very soon. Not sure what they are or what to do? Don’t worry, we have you covered.

It’s been a big year for changes in areas like people management, pay and tax. Here’s a rundown of some key changes that will come into effect 1 July and what they mean for your business and your employees.

1. SUPER GUARANTEE INCREASES

If you haven’t already, then it’s time to get your payroll systems sorted as the superannuation guarantee increases to 11% from 1 July. The super guarantees for the current quarter will stay at 10.5%.

Also, make sure you’re across the gradual increases, which will see the super guarantee reach 12% by July 2025.

To work out how this will impact employees’ pay, have a look at whether their contract states their salary is inclusive of superannuation or not.

2. WAGES GO UP

Employees should also be aware that from 1 July, wage increases will come into effect following a ruling from the Fair Work Commission.

For employees who aren’t covered by an award, the minimum wage will go up from 1 July to $882.80 per week, or $23.23 per hour, and will apply from the first full pay period starting on or after 1 July 2023.

For employees covered by an award, minimum award wages will increase by 5.75%, also applying to the first full pay period starting on or after 1 July 2023.

3. FAIR WORK COMMISSION CHANGES

From 1 July 2023, the application fee will increase to $83.30. The fee applies to dismissal, general protections, bullying, and sexual harassment at work applications made under sections 365, 372, 394, 773, and 789FC of the Fair Work Act 2009.

There is no fee to make an application to deal with a sexual harassment dispute under section 527F of the Fair Work Act.

Also effective from 1 July, the high-income threshold in unfair dismissal cases will increase to $167,500 and the compensation limit will be $83,750 for dismissals occurring on or after 1 July 2023.

4. PAID PARENTAL LEAVE CHANGES

From 1 July, amendments to the Paid Parental Leave Scheme will come into effect.

Notably, the Dad and Partner Pay (DAPP) scheme, which currently provides up to two weeks of paid leave, will now be combined with the 18-week paid parental leave scheme. This means eligible parent couples or single parents can share their 20 weeks of leave – aimed at greater gender equity in parental caring responsibilities.

There are other changes, too, such as the whole 20 weeks of leave of instalments can be received flexibly in multiple blocks within 24 months of the child’s birth or adoption date, removing the previous requirement of 12 weeks in one continuous period.

Also, note that employees now have greater rights to request an additional 12 months of leave (24 in total) – and employers need to show reasonable business grounds on which to refuse.

5. CHILDCARE SUBSIDIES

For those who employ parents with young children, it’s worth noting that childcare rebates will change from 1 July. They should result in any employees with a family income of less than $530,000 getting a higher level of subsidy for the cost of childcare.

For example, families earning up to $80,000 will get an increased maximum Child Care Subsidy (CCS) amount, from 85% to 90%. If they earn over $80,000, they may get a subsidy starting from 90%, but it will go down by 1% for each $5,000 of income the family earns.

While these changes are applied automatically, it is worth being aware that they are coming.

6. DOMESTIC VIOLENCE LEAVE INTRODUCED

From 1 February, employers with 15 or more employees were required to provide their employees with 10 days of paid family and domestic violence leave (FDVL) per year.

For smaller employers who employ less than 15 employees, this entitlement will operate from 1 August 2023.

Paid family and domestic violence leave is quite a sensitive topic, and there need to be procedures in place – on everything from how the HR or manager handles requests to the privacy issues around how it gets recorded on a pay slip.

7. PENSION AGE AND ELIGIBILITY INCREASES

For those businesses employing older Australians, it’s worth noting that from 1 July, the pension age will be raised to 67 for those born on or after 1 January 1957.

Not only that but asset and income eligibility tests will also be revamped, which means singles can earn $204 a fortnight and couples $360 a fortnight, before losing their full pension.

8. ENERGY BILL RELIEF ON ITS WAY

With soaring power bills contributing significantly to business operating costs, $650 in bill relief is on its way from July.

The total amount of bill relief will vary by state. To be eligible, your business must be on a separately metered business tariff with your electricity retailer – so if you run a business from home, you probably won’t qualify.

Certified Xero Bookkeepers

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 bookkeeping services below and get in touch today to discuss the plan which best suits the needs of your business.