For most accountants, 30 June does provide some welcome relief for owners and staff to take a break and plan towards the next financial year. However, there are many pressing matters that require your attention that we provide assistance when required.
The most pressing matters relate to payroll, with a number of important dates that are due soon after the financial year.
Firstly, as an employer you must make a finalisation declaration by 14 July in your payroll software. This ensures that your employees can access their finalised information to complete their tax return. If you are a small employer who only have closely held payees, the due date for end of year finalisation for wages is the due date of the employer’s tax return. An example of a closely held payee is a family member of a family business.
For employers, you will now be paying staff in the new financial year. It is important that you ensure your payroll settings have been updated. Tax tables have changed due to income tax cuts for the 2025 year, which were passed in March. The compulsory superannuation guarantee rates also increased to 11.5%, and minimum wage rates have risen for the first full pay period on or after 1 July 2024, along with many awards. It is imperative as an employer to have software that ensures that you meet your payroll obligations.
While the above affects all employees, there are other dates upcoming that effect a small minority of businesses. For large employers, you have ongoing payroll tax obligations. By 22 July 2024 you must lodge and pay your annual return in QRO Online. This annual return advises the taxable wages that you have paid during the year.
Also, the Australian Taxation Office requires certain businesses to report taxable payments made to contractors. While primary producers are exempt from these obligations, certain rural businesses that support the industry are covered, including road freight. Total payments made to contractors are required to be lodged with the Tax Office by 28 August.
For some of you, 1 July provides an opportunity to be first in the door to lodge your 2024 Income Tax Return. The Australian Taxation Office have warned you against rushing to avoid any mistakes being made. The Tax Office gathers a large amount of information from employers, banks, government agencies and health funds, and it is possible that not all information is loaded at the start of the financial year. If you lodge too early it is possible that these details are forgotten if you rely on this data being pre-filled in your tax return.
For small businesses, the saga that is the instant asset write-off finally ended, with the announcement made in the 2023-24 Budget now law. In summary, a small business with aggregated turnover of less than $10 million can immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024.
The Federal Government have announced to extend the instant asset write -off for a further 12 months until 30 June 2025. This bill is now before Parliament, and it is hoped that this legislation is passed promptly.