As the end of financial year approaches there are a number of deadlines and due dates to be aware of and also some important changes coming with the start of a new year.
Single Touch Payroll Reporting (STP)
For all businesses that pay employees and directors a wage, that are reporting the wages through single touch payroll, it is important that you are complying with the STP requirements set by the ATO. Employers will need to make the final declarations by the 14th July for all employees they have paid within the financial year.
Before you submit your STP reporting finalisation it is important to check that the wages, PAYG Withholding and Superannuation paid to your employees are correct and you have reconciled these:
If you use MYOB, please click here for more information.
If you use Xero, please click here for more information.
If you use QuickBooks, please click here for more information.
Once you have completed the finalisation process, you will need to let your employees know that they can now access their income statement/payment summary in the ATO portal.
Superannuation Payments
By making superannuation payments before 30th June, means that your business can claim the tax deduction for that superannuation paid in the current financial year. It is important to make sure these payments are also cleared in the clearing house you are using for the super to be deductible. Check with your clearing house as to how long your payments take to clear as some will take up to 10 days.
If you do not pay your superannuation before 30 June, you will need to pay the June Quarter super before the 28th July to receive a tax deduction in the 2025 financial year.
Superannuation % Change
The current superannuation rate is at 11%. It will be increasing to 11.5% on 1 July 2024. Please be mindful of this change and make sure your accounting software updates before you complete your first pay run in July 2024.
Taxable Payments Annual Reports (TPAR)
As the end of financial year approaches, business around Australia must prepare a TPAR if the organisation makes payments to contractors or subcontractors. Industries that are likely to report TPARs include:
- Building and Construction
- Courier Services
- Cleaning Services
- IT & Security Services
- Freight Services
Within your TPAR you will report the contractors name, address, ABN and total amount paid to them for the services they rendered in the financial year. You will also include any GST that was paid if they are registered.
It is important that these reports are lodged with the ATO by the 28th August 2024. If you fail to lodge the TPAR before this date, there may be penalties and consequences.
Tax Cut Changes
From 1 July 2024 the Australian Government are providing tax cuts to all tax payers in Australia. These changes include:
- Reducing the 19% tax rate to 16%
- Reducing the 32.5% tax rate to 30%
- Increasing the 37% tax threshold from $120,000 to $135,000
- Increasing the 45% tax threshold from $180,000 to $190,000
End of year stocktake
If applicable to your business, it is important that you prepare a detailed stock take of all stock that is on hand at 30 June. If you are in the construction industry, if required make sure you prepare a list of work in progress at 30 June.
Write off bad debts
You may be able to claim a deduction for any income that you cannot recover from your customers. This unrecovered income is called a Bad Debt and will then sit in your expenses. Write off these bad debts before 30 June to receive a tax deduction in the 2024 financial year.
If you have any concerns on the upcoming deadlines and lodgements, or require assistance in completing these, please contact our office.
Comments are closed.