Important EOFY updates
This newsletter includes a range of information, including:
Changes to STP reporting from 1 July
End-of-year finalisation through STP
How to access your income statement
Super guarantee increasing from 9.5% to 10% on 1st July 2021
Annual Wage Review 2021
Removing the $450 per month threshold for super guarantee eligibility
General depreciation rules – capital allowances
Motor vehicle expense records you need to keep
Changes to STP reporting from 1 July
There are changes to STP (Single Touch Payroll) reporting for small employers with closely held payees and to quarterly reporting for micro employers from 1 July 2021. This may affect how you report to the ATO.
From 1 July 2021:
employers must report any closely held payees through STP. You can choose to report these payees each pay day, monthly or quarterly.
STP quarterly reporting concessions for micro employers will only be available to micro employers who meet certain eligibility requirements. These now include the need for exceptional circumstances to exist.
Employers can apply for this concession through the online deferral tool from 1 July 2021. Employers who haven't started reporting through STP and don't have a deferral or exemption need to start reporting now.
Remember, registered tax agents and BAS agents can help you with your tax.
For more information on STP and closely held payees: https://www.ato.gov.au/Business/Single-Touch-Payroll/Concessional-reporting/Closely-held-payees/
For more information on quarterly reporting concessions: https://www.ato.gov.au/business/single-touch-payroll/concessional-reporting/micro-employers/
End-of-year finalisation through STP
You need to make a finalisation declaration by 14 July each year.
If you do not finalise by this date, you should do this as soon as possible to ensure your employees can access their information to complete their income tax return.
How to access your income statement
Employers are required to report income, tax and super information directly to the ATO each pay day. This is called an income statement and makes it easier for an employee to find all income information in their myGov account when they need it.
Income statement – Employers who report via Single Touch Payroll (STP) don't have to give employees a payment summary. Instead, they will get an end-of-year income statement through myGov. Employers need to finalise this information by 14 July.
Payment summary – If an employer is not reporting to us via STP, they are required to provide employees with a payment summary by 14 July.
Super guarantee increasing from 9.5% to 10% on 1st July 2021
On 1 July 2021, the super guarantee rate will rise from 9.5% to 10%. If you have employees, you will need to ensure your payroll and accounting systems are updated to incorporate the increase to the super rate.
Annual Wage Review 2021
Following the Annual Wage Review 2021, the Fair Work Commission (FWC) has announced a 2.5% increase to the national minimum wage.
When does the increase start?
The new national minimum wage will apply from your first full pay period on or after 1 July 2021. This means if you have a weekly pay period that starts on Mondays, the new rates will apply from Monday 5 July 2021.
The award increase will happen in 3 stages.
The increase doesn’t affect employees who already get paid more than their new minimum wage.
Most awards will increase from the first full pay period on or after 1 July 2021. The increase for the Retail Award will apply from the first full pay period on or after 1 September 2021. The other 21 awards will increase from the first full pay period on or after 1 November 2021.
Removing the $450 per month threshold for super guarantee eligibility
On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it will remove the $450 per month threshold to expand coverage of super guarantee to eligible employees regardless of their monthly pay.
This measure is not yet law.
From 1 July 2022, eligible employees who earn less than $450 per month will be paid super guarantee by their employer if they satisfy the other eligibility requirements.
General depreciation rules – capital allowances
To calculate your depreciation deduction for most assets you apply the general depreciation rules (unless you're eligible to use instant asset write-off or simplified depreciation for small business).
Motor vehicle expense records you need to keep
The records you need to keep for your business's motor vehicle expenses depend on how you calculate your claim. You will generally need to keep:
details of the kilometres travelled for business and private use
receipts for fuel, oil, repairs, servicing and insurance cover
loan or lease documents
tax invoices
registration papers
details of how you calculated your claim.
If you are a sole trader or partnership using the logbook method, you will need to keep additional records.
Keep your records for five years.
ATO Cents per kilometre method remains unchanged for 2021 -2022