The Australian Tax Office (ATO) has recently introduced changes to compliance reporting, superannuation, payment arrangements and minimum wages that businesses must navigate into the new financial year. It is business critical to lean into these obligations as a compliance priority.
Single Touch Payroll
Single Touch Payroll is here in more ways than one. For business managers, it requires digital reporting directly to the ATO of all payments made to employees from July 1 2019. For employees, it means they will not receive a Payment Summary for Financial Year 2018-2019 as they have done previously. They will need to log in to MyGov online to access financial statements.
Superannuation Director Penalty Notices
The reporting time frame has been reduced for Superannuation amounts to the ATO. Directors must submit the report by their due date i.e. within 28 days of the end of each quarter, and not the former three (3) month from due date. If this reporting requirement is not met, Directors can be held personally liable and receive a penalty.
ATO payment arrangements
In an effort to support businesses to reduce their tax debt, the ATO has introduced a series of modifications to debt payment plans. Increased flexibility is being afforded to businesses so they can get back in the driver’s seat. This includes tailored plans to address cash-flow issues and the possibility of extended payment arrangements of up to three years. The encouragement from the ATO to business owners is to communicate proactively. With information comes option.
Wage increase of 3% from 1 July 2019
As businesses prepare 2019/2020 budgets, sales forecasts and pricing, it is important to remember that the national minimum wage and all modern awards will increase by 3% from 1 July 2019.
The national minimum wage will increase to $740.80 per week, or $19.49 per hour, based on a 38-hour week. This is an increase of $21.60 per week.