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The end of the financial year is not just about tying up an interesting and challenging year, it’s also a chance to prepare for a successful year ahead! Below are some things you may want to consider.

Temporary Full Expensing or Instant Asset Write-Off
Small businesses with an aggregated turnover of less than $50 million can receive a full write-off for all assets. Both new and second-hand assets qualify, but these assets must be used or already installed by the end of the financial year. The immediate deduction for a car cannot exceed the cost limit of $59,136.

Payroll
Pay all unpaid wages that have been processed and employee bonuses before 30 June. It’s also recommended to start reviewing and updating your employment contracts with your staff.

Superannuation Guarantee increases on 1 July 2021

The Superannuation Guarantee (SG) will increase to 10% from 1 July 2021. If you have employees, you need to be ready for this legislated increase.

What do you need to do?

• Firstly, you should speak to your payroll software provider to make sure they are on top of this rate change. Your accountant or bookkeeper may also be able to help.
• Review any individual agreements with an SCG rate of more than 9.5%, but less than 10%.
• Notify your employees as they may need to review their Salary Sacrifice or after-tax contributions arrangements.
• Update Remuneration Packages as it could mean a pay decrease for employees.
• This is also a good opportunity to do some housekeeping to ensure your super obligations have been met (including super payments and calculations).

As an employer it’s important to ensure you pay super at the new minimum rate. There are financial penalties applied for not meeting your SG obligations. Ask us if you have any questions.

JobMaker Hiring Credit’s Second Claim Period

The second claim period of the JobMaker Hiring Credit is now open. So if you’ve taken on additional young employees between 7 January and 6 April 2021, you may claim the following payments:

• up to $10,400 over a year for each additional eligible employee aged 16 to 29 years
• up to $5,200 over a year for each additional eligible employee aged 30 to 35 years

Register any time until the scheme ends.

Wage Subsidy Scheme for Apprentices and Trainees

The government has announced the expansion of the wage subsidy scheme for apprentices and trainees. Under the scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. Ask us if you have any questions.

Income Statements can be found in myGov in July

Since Single Touch Payroll (STP) came into place in 2019, payment summaries (previously called Group Certificates) now known as Income Statements can be accessed through myGov. These are no longer directly provided by employers. This will be prepared and ready for employees by 14 July if your or 31 July, depending on if the employer has 20+ employees or 19 or less respectively.

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business.