Are you ready for the end of financial year?

Always important tax time tips

Beware of scams!

As scammers become more sophisticated, it is important that businesses and individuals remain vigilant, including when accessing tax related services.  The ATO has reported fake websites providing tax file numbers and ABNs for a fee.

Avoid getting caught out by these scams by following HIA’s tips. 

Looking after your mental wellbeing

Whilst it is important to look after your business and personal financial health, it is critical that you also look after your mental wellbeing.

There is support and resources for you and your business during these times. It is important to manage your mental health and workplace stress. 

HIA has partnered with Beyond Blue to help build mentally healthy environments. To help our members, HIA has created a mental health in the workplace toolbox with specific information for those working in the construction industry. 

If you or someone you know is experiencing mental health issues, contact Beyond Blue on 1300 224 636 at any time.

Essentials to strengthen your small business

If you looking to improve your financial, record-keeping and business knowledge to support your business's long-term health the ATO have recently launched a free online learning platform to help small businesses understand how to handle their tax and super basics. 

You can pick and choose from specific topics that are relevant to your needs and where you’re at in the business lifecycle. You can also complete each course at your own pace by saving your progress and coming back another time. For more information, visit the Essentials to strengthen your small business page.

Reminders for the end of the 2023/24 financial year

Staying on top of your financial and tax deadlines can be stressful. However, it is important to remember that you are not alone and there are resources available to help you. Talk to your trusted financial advisor or accountant as soon as possible.

Managing your employees

Payment summaries

Businesses must provide payment summaries to their employees by 14 July 2024.

Superannuation guarantee

On 1 July 2023, the superannuation guarantee contributions (SG) increased to 11%. Make sure you have paid your employees superannuation at the correct rate during the year to benefit your employees and to avoid penalties that can be applied to employers for incorrect payment.

Find out more about changes to superannuation.

ATO contractor reporting 

If you made payments to contractors during FY 2023/24, you may need to report these payments and lodge a ‘Taxable payments annual report’ (TPAR). This includes payments to subcontractors, consultants, and independent contractors. The TPAR must be lodged by 28 August 2024.

Beware of penalties 

The ATO is now focusing on businesses with superannuation and other debts. The ATO will continue to seek to recover overdue tax payments and other obligations by serving Director Penalty Notices (DPNs). 

As a director of a company, you may become personally liable for certain tax obligations of your company such as PAYG, Superannuation Guarantee Charges and GST charges. Ensure that you have paid each of these obligations by their due dates to avoid being on the receiving end of an ATO notice! If you do receive a DPN, you may have grounds to file a defence. 

Businesses that are facing financial difficulties  are encouraged to engage with the ATO, share their concerns and work with them to tailor a solution unique to your business circumstances.

Find out more, see ATO's website. 

Managing your business tax requirements   

Payroll tax

Ensure your payroll tax requirements, including any lodgements and payments are up to date. Lodgement dates may vary across states, so check your State Government Revenue website for details

Home-based businesses

Do you have your FY 2023/24 business deductions, receipts, and claims ready? If you have a home-based business, you may be able to claim additional tax deductions such as occupancy expenses, running expenses and motor vehicle expenses. HIA has prepared a summary of the tax rules with further details available from the ATO. 

ATO business record rules 

The ATO requires businesses to maintain records of all business income and expenses. For example, you should keep a record of all business income received including your progress claims, receipts for deposits and progress payments, and documents regarding any security accounts held jointly with your client. 

Evidence of expenses should include things such as purchase orders, tax invoices, cheque butts, subcontractor payments (as reported to the ATO) and delivery documents. 

Find out more about the ATO's rules for business records. 

Claiming expenses on your company car 

Don’t miss out on claiming your car expenses. There are two car expense deduction options available when claiming. You can deduct expenses based on the cents per kilometre basis or you can claim deductions under the simplified depreciation rules. 

Find out more about the expenses able to be claimed and your options. 

Small business due dates 

If you are having trouble staying on top of your tax due dates, check out the ATO’s small business newsroom key date calendar. It’s important to let the ATO know if you need additional time to lodge your returns by calling the ATO on 13 28 66 before the relevant due date. 

Preparing for the 2024/25 FY ahead

Managing your employees

Superannuation changes 

Superannuation contributions will increase again this year.

From 1 July 2024, superannuation guarantee contributions (SG) will need to be made at 11.5% for all employees.

Minimum wage increase

Each FY, the Fair Work Commission conducts an annual wage review. This year the Commission has awarded a 3.75% increase to the national minimum wage, which will impact any employee covered by a modern award.  

This means that from 1 July 2024, businesses need to ensure that they are paying the increased wages to their employees. To find out more about the increase, read  HIA's Member alert.

HIA will be publishing the updated award rates on our website once available from the Fair Work Commission. If you need a copy of the updated wage sheets, email our team.