Hello and welcome to your June newsletter from all of us here at Bee Group Accountants.
Upcoming Dates for June 2024
5 – FY2023 tax debts due for payment
21 – Lodge and pay May BAS (if you lodge monthly)
21 – Most Accounting software providers are suggesting payment of Superannuation via the Superannuation Clearing House to ensure receipt by the 30 June for deduction.
25 – FBT (Fringe Benefits Tax) Return 2023 Due (if you lodge electronically) *
* Note: The FBT tax year runs from 1st April to 31st March.
30 – End of Financial Year – Prepare to wrap up books for the 2023-24 financial year30 – Super guarantee contributions must be paid by this date to qualify for a tax deduction in the 2022–23 financial year
National Minimum Wage Increase
Effective July 1, 2024, the National Minimum Wage will increase by 5.75%, necessitating adjustments to employee compensation. If your staff aren’t on minimum wages, this change won’t directly affect you.
But if they are, it’s vital to plan ahead. We suggest:
- Reevaluating your payroll expenses.
- Estimating how the increase will affect your profits.
- Exploring options like price adjustments or operational efficiencies to counter potential costs.
- Reviewing award wages, ensuring compliance with rising standards aligned with the minimum wage hike.
Boost In Superannuation Guarantee Rate
The Superannuation Guarantee (SG) mandates the minimum contribution employers make to their employees’ super funds. Currently set at 11%, it will increase to 11.5% come July 2024, and further to 12% by 2025.
Although this is good news for employers, it will introduce additional costs in your business.
We suggest that you:
- Allocate funds appropriately in your budget.
- Incorporate this increase into your financial forecasts.
Prepare for larger superannuation outlays over the next 12 months.
New Workplace Laws
There are some recent changes to the Fair Work Act that you may need to know about. We have summarised these below but please ensure you are checking the Fair Work website for detailed information.
- Employee authorised deductions: Any deductions to be taken from an employee’s pay are to be authorised in writing from 30 December 2023. There are also rules around how these are recorded and when they can be deducted. See the Fair Work website here.
- Superannuation in the National Employment Standards (NES): From 1 January 2024, super is an entitlement under the NES. There is a new Fair Work Information Statement to reflect this. Read more on this change here.
- Closing Loopholes: The Australian Government’s ‘Closing Loopholes’ laws have brought about further changes to the Fair Work Act, some that started in December and others that come into effect in 2025. Keep up to date here.
It is your responsibility to keep up to date with these changes to keep an eye on the Fair Work website for new developments.
Stage 3 Tax Cuts
Beginning in July 2024, the Stage 3 tax cuts are set to be implemented by the government. Though targeted at individual taxpayers, they may offer indirect advantages to your business.
Here’s how:
- Increased consumer spending: With more disposable income due to lower personal taxes, employees may have greater purchasing power. This surge in spending could potentially benefit your business’s sales figures.
- Attracting talent: Small businesses have faced challenges in recruiting skilled local workers in recent years. Reduced personal tax rates could enhance Australia’s appeal as a work destination, easing the recruitment process and bolstering the talent pool available to your business.
- Simplified tax planning: The simplification of the tax system with fewer brackets makes financial planning and forecasting easier for small business owners. Clearer tax obligations can aid in better cash flow management and investment planning.
Surge in Audits
The ATO has advised that, “Employers and tax agents will see increased audits of all employer obligations including FBT.” They are planning to increase random and risk-based reviews of business employer tax obligations which include PAYG, Super Guarantee and FBT obligations.
Such reviews are comprehensive and time-consuming to comply with. The ATO will request copies of financial statements, payroll records, bank statements and logbooks for scrutiny, which is another reason to ensure that you have thorough and meticulous record-keeping practices in your business. Please reach out to us if you need any assistance with record-keeping procedures or applications that can simplify the process. Audits or information requests are not included in your annual fees with us. Our Audit Shield offering will cover the time involved in locating and retrieving the documentary evidence required to support your returns that are being audited. If you do not have active Audit Shield insurance, please contact us and we can provide a quote for coverage for your entities.
Tax Time Toolkit for Investors
The ATO has released their tax time toolkit specifically aimed at investors who earn income from property investments, shares or cryptocurrency. The following link contains useful information on common mistakes to avoid, detailed information on what you can and can’t claim as deductions, capital gains tax and other helpful checklists. Check it out here.
Property Purchases through your SMSF
We have had a couple of instances this week where properties being purchased through a self-managed super fund (SMSF) did not follow the rules and regulations around SMSF property ownership. Purchasing property through an SMSF necessitates strict adherence to regulations. The property must be held in the name of the SMSF, ensuring compliance with the Australian Taxation Office (ATO) guidelines. This is crucial to maintain the separation between personal assets and those of the SMSF, safeguarding retirement savings and ensuring tax advantages. Failure to adhere to this requirement could lead to severe penalties, including the loss of tax concessions and potential legal repercussions.
In the case where finance is needed for a purchase, please note that SMSFs are prohibited from directly borrowing funds. Instead, a separate company must be established to act as the trustee for the SMSF Holding/Bare Trust. This structure facilitates Limited Recourse Borrowing Arrangements (LRBA), where the trustee borrows funds on behalf of the SMSF to acquire property. LRBA agreements outline the terms of the loan, specifying that only the property purchased with borrowed funds can be used as collateral. This setup ensures compliance with superannuation laws and protects the SMSF’s assets and members’ interests.
If you are unsure or need assistance, please reach out to us in the first instance so that we can let you know what needs to be done in order to comply with requirements.
Losses in Cryptocurrency Investments
In recent financial years, there have been instances where Self-Managed Super Fund (SMSF) trustees experienced losses in their crypto asset investments. These losses stemmed from various factors, including:
- Falling victim to crypto scams, where trustees were deceived into investing their superannuation funds in fraudulent crypto exchanges.
- Theft, wherein fraudsters gained unauthorised access to trustees’ crypto accounts and absconded with their assets.
- The collapse of crypto trading platforms, many of which were situated overseas.
- Forgotten passwords leading to trustees being locked out of their crypto accounts, rendering their assets inaccessible.
For those contemplating crypto investments, it’s crucial to understand the potential avenues of loss, such as falling prey to scams, and how to mitigate such risks. Resources like the ACCC’s scamwatch and the MoneySmart section on ASIC’s website offer valuable guidance on recognising and dealing with crypto scams.
It’s important to note that many crypto assets do not fall under traditional financial product regulations, meaning platforms facilitating crypto transactions may not be subject to ASIC oversight. Consequently, investors may lack recourse in the event of platform failures or security breaches, potentially resulting in the total loss of their crypto holdings.
Given the complexity and risks associated with crypto investments, trustees are advised to seek professional financial advice before proceeding. Additionally, thorough research, including consulting resources like MoneySmart and our SMSF investing in crypto assets page, is strongly recommended.
Getting to know Karbon
We use Karbon to securely transfer and secure your data. We’ve put together a video and blog to show you how it works. Click to check it out here.
Need to chat or meet with us?
We have a dedicated bookings page where you can schedule a time to talk with one of us. This links directly to our calendars so you can choose a time that suits your schedule. When booking a time, please leave as much detail as possible about why you need to chat to us so that we can make sure we are prepared.
Bee Group Accountants – Bookings
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Need Help?
The Bee Group Knowledge Base is filled with articles to help you with everyday frequently asked questions.
Alternatively, you can submit a help request online here.
As always, please reach out to us if you have any questions or queries. We look forward to hearing from you.
Wishing you all a fantastic June and end of Financial Year!
Sheree & the Team at Bee Group Accountants
We have been working hard at improving our systems and building up our team. This means that we are now able to start accepting new clients. If you have someone that you know who is looking for an accountant – please ask them to get in contact with our office via phone, email or through our website.
If there is anything that you think we can improve on too, please be sure to let us know. We are working hard to improve your experience in working with us as well!
We truly appreciate the opportunity to help and welcome any recommendations.
