Key Date 1st July 2022 – Compulsory employer superannuation contribution rate increases to 10.5%. 14th July 2022 - STP must be finalised for all employees by this date. 21st July 2022 – Payroll tax must be completed and lodged. 28th July 2022 – June quarterly super payments are due.
New Director ID requirements The government has introduced a new requirement for Directors of existing and new companies. Directors must apply for a Director identification number (Director ID) that is then linked to your company/s. This is to help prevent the use of false or fraudulent director identities. Apply before 30th November 2022. https://www.abrs.gov.au/director-identification-number
STP Phase 2 Single Touch Payroll (STP) reporting has been expanded. This expansion is known as STP Phase 2. If you have employees, you will need to start reporting extra information to the ATO each time you run payroll through your STP enabled software. For more information visit https://www.ato.gov.au/Business/Single-Touch-Payroll/Expanding-Single-TouchPayroll-(Phase-2)/
Instant Asset Write Off The Instant Asset Write Off rules continue to apply – allowing an immediate claim for business assets rather than depreciating the asset over its effective life. Ensure assets are installed ready for use prior to 30th June to take advantage of these rules.
Employee Super The compulsory employer superannuation contribution rate will increase to 10.5% from 1st July 2022. Any wages not paid to employees prior to 30th June will incur superannuation at the higher rate. You may want to consider paying employees their wages earned up to 30th June prior to year-end, even if it is out of the regular pay cycle. The monthly threshold of $450 for employees will be abolished. Employers will be required to make super guarantee contributions to their eligible employee's super fund regardless of how much the employee is paid. Employees must still satisfy other super guarantee eligibility requirements. For more information visit https://www.ato.gov.au/Business/super-for-employers/work-out-if-you-have-to-paysuper/
Company Tax Rates
Did you know that reduced tax rates may be available to eligible entities? These include companies, corporate unit trusts and public trading trusts. If your company is a ‘base rate entity’, your company tax rate is 25% from the 2021–22 income year onwards. For more information visit https://www.ato.gov.au/Rates/Changes-to-company-tax-rates/
Fuel Tax Credits If you claim fuel tax credits you will need to apply the lower rates for fuel acquired from 30th March 2022. Each time you complete your BAS, the easiest way to ensure you are using the correct rate is to use the ATO fuel tax credit calculator. The lower rates for fuel tax credits are a result of the halving of fuel excise for six months from 30th March to 28th September. https://www.ato.gov.au/Calculators-andtools/Host/?anchor=FTCCalc#FTCCalc/questions
Car Cost Thresholds From the 1st July 2022 car threshold increased to $64,741. This is the maximum value that can be used for calculating depreciation on the business use of a car first used, or leased, in the 2022–23 income year. The luxury car tax limit increased to $71,849 and for fuel-efficient vehicles to $84,916.
Apprenticeships Incentive System The Government has introduced a new Australian Apprenticeships Incentive System from 1st July 2022. The incentive payments to employers are based on the apprenticeship certificate level completed. The majority of incentive payments are one-off and paid annually at the end of the year. Payments range from $750 to $4000, depending on the incentive. To read more go to https://business.gov.au/grants-and-programs/Australian-Apprenticeships-Incentives-Program
Boosting Apprenticeship Commencements (BAC) The Boosting Apprenticeship Commencements and Completing Apprenticeship Commencements wage subsidies have been extended by three months to 30th June 2022. These programs provide subsidies to businesses that engage an Australian Apprentice between 31st March 2022 and 30th June 2022. Your business may be eligible for a subsidy of 50% of the apprentices gross wages paid. Make sure to apply before the 30th June 2022. For more details visit https://business.gov.au/grants-and-programs/boosting-apprenticeship-commencements
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