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It’s the end of the financial year – so what’s new?

June 23, 2019

Single Touch Payroll (STP)

This new process for reporting tax and superannuation information about employees will apply to all employers from 1 July 2019. By now employers should have made arrangements so they can start using STP.

The STP requirement to report tax and superannuation information to the ATO in relation to payroll does not change your existing obligations about paying employees or the ATO generally.

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Denial of tax deductions

The Commonwealth government has introduced changes to prevent the operation of the cash economy. From 1 July 2019 a failure to withhold tax from payments made to employees or contractors – when required – will result in the payment not being tax deductible.

Members should review their processes for paying contractors and ensure all contractors have valid ABN’s.

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Late payment of superannuation

Paying your employees superannuation on time has never been so important. The ATO’s new compliance and enforcement powers, in conjunction with changes to penalties for late payments serve as a reminder to review your payment processes for all of you taxation obligations.

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Superannuation and Annual Leave Loading

There has been a change to the approach taken by the ATO to the treatment of annual leave loading for the purposes of calculation of superannuation. The change means that employers may need to provide written evidence of the purpose of annual leave loading to justify their calculation of Ordinary Time Earnings that does not include annual leave loading payments.

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Increase to award wages

On 30 May 2019 the Fair Work Commission announced that from 1 July 2019 modern award rates will increase by 3%.

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Please call a HIA Workplace Adviser on 1300 650 620 for further information.