With the start of a new financial year already here, it is now time for businesses to complete annual compliance tasks to close-out 2023/24. Follow our EOFY checklist below to ensure you (and your staff) are well prepared to enter the new financial year:
Single Touch Payroll (STP) Finalisation
At the end of each financial year, employers reporting through Single Touch Payroll (STP) are required to make a finalisation declaration by the 14th of July to ensure that the income statements for employees are finalised and ready for them to complete their Tax Returns.
The more common software platforms (including Xero and MYOB) have instructions on how to do this.
Quarterly Superannuation Guarantee Payment
Employers are required to have superannuation obligations submitted and receipted by the employees’ fund no later than the 28th of the month following end of quarter. The April to June 2024 quarter is due for lodgement and receipt to the employees’ fund by the 28th of July 2024.
As a part of STP Phase 2, the ATO now can closely track and monitor when employers physically pay their employees superannuation. We have seen a high level of ATO review and audit activity in this area over the past 12 months, so it is critical that superannuation obligations are being met and paid in a timely manner. Note that superannuation is only deemed to be paid once it reaches the employees’ superannuation fund accounts – so it is important that payment is made well before the due date to ensure that this occurs. Some clearing houses can take up to 2 weeks to process payments. If your superannuation is paid late or not at all, you will be required to lodge superannuation guarantee forms and incur late lodgement penalties and interest charges.
Superannuation payment due dates for the 2025 financial year can be found here.
We recommend employers consider making payment of superannuation obligations monthly. This spreads the contributions out more evenly for cashflow purposes and ensures that they are reaching the employees’ funds in a timely manner.
Superannuation guarantee increases from 1 July 2024
From 1 July 2024, the superannuation guarantee rate will increase from 11.00% to 11.50%. Most common payroll systems like Xero and MYOB should make the changes automatically in the background, however if you are completing manual payroll you will need to ensure that you change this rate as at 1 July 2024 to avoid any unnecessary superannuation guarantee charges.
Superannuation guarantee rates including what wages you are liable for superannuation guarantee for can be found here.
It is also good to review the types of gross payments that superannuation guarantee is payable on to ensure that your software is accruing super correctly. Please follow this link for further information.
WorkCover QLD – Declarations
If you have a business in Queensland and employ workers, you must insure them against work-related injuries. WorkCover declarations for the 2025 financial year are due before 31st August 2024 to maintain your cover and allow WorkCover QLD to calculate your updated premium.
More information on renewing your WorkCover can be found here.
Minimum wage increases from 1st July 2024
From 1st of July 2024, the Fair Work Commission has increased the minimum wage by 3.75%, now making it $915.90 per week, or $24.10 per hour. As an employer, you will need to ensure that you review your employees current pay rates to ensure that you are in line with Fair Work.
More information can be found on the Fair Work website.
Stage 3 Tax Cuts – Enacted from 1st July 2024
The government has made changes to individual income tax rates and thresholds that come info effect from 1st July 2024.The following table compares the new 2024/25 brackets on the right, to the outgoing 2023/24 brackets on the left:
This means that less PAYG withholding tax will be deducted from employee’s payroll for any pay-runs with a paid date after 1st July 2024. Most of the common software (such as Xero and MYOB) will automatically adjust their tax tables in the background – so employees will notice that their take-home pay will increase from this week due to less PAYG withholding tax deducted and withheld for the ATO.
Employers need to ensure that the new withholding rates are being applied to payments made from 1st July 2024.
Lodgement of Annual Payroll Tax Returns
Annual returns for Payroll Tax must be lodged and paid by Monday 22nd July 2024. As an employer, you must register for payroll tax within 7 days after the end of the month in which you pay more than $25,000 a week, $108,333 a month or $1.3 million a year in Australian taxable wages or become part of a group that together pays more than these thresholds.
This is a good opportunity for employers to review their payroll for the year to check if you have exceeded any of these thresholds and need to register for payroll tax.
Taxable Payments Annual Report (TPAR)
Taxable Payments Annual Reports (TPAR) are required to be lodged by any businesses or government entities in the following industries:
- Building and construction services
- Cleaning services
- Road freight and courier services
- Information technology services
- Security, investigation or surveillance services
TPARs report payments you have made during the 2023/24 financial year to contractors and can include subcontractors, consultants and independent contractors, operating as sole traders, companies, partnerships or trusts. A business must lodge it’s TPAR by the 28th of August each year.
More information can be found on the ATO website.
If you have any questions or concerns or are unsure about completion of any of these items, please contact your advisor for more information.
