What does the EOFY timeline look like?
You need to get your accounts up to date now and chat to your accountant about tax planning – do you want to minimise losses or decrease profits or everything is AOK, stick to the path?
There’ll be a bunch of payroll changes in July:
– Stage 3 tax cuts kick in (you may not have heard about it!) if you’ve got scheduled bank payments for salaries – you’ll need to change them. Software should automatically update tax scales for wages, (unless you’re still on old desktop software).
– Super will increase from 11% to 11.5% for wages PAID on or after 1st July – regardless of the period worked. The week from Monday 24th to Sunday 30th June is likely to be paid to staff on Monday 1st or Tuesday 2nd July – July rules apply to that payment.
If you’ve quoted a salary package inclusive of super, wages theoretically go down as super goes up, which could make you pretty unpopular in this climate.
– The super cap will also increase from $27,500 to $30,000.
– Minimum wages are expected to go up by about 4% in July as well. Check you are still paying your employees enough to keep yourself on the good side of fairwork.
Payroll needs to be finalised and submitted to the ATO by 14th July – you need to reconcile accounts and make sure everything is in the right box – Single Touch Payroll v2 means there are many more boxes than before. Gross wages, travel allowances, tool allowances, overtime, sick leave, annual leave, long service leave, termination payments, super, salary sacrifice super, tax withheld – are all different types of payments and shouldn’t be mixed up. There is no paperwork for employees – its all submitted online.
Super for June quarter needs to reach employees funds by 28th July – so you need to prepare payments in mid July.
Depending on how you lodge, your June BAS is due in August – 12th if you DIY in the portal or 25th if an agent lodges for you. GST needs to be reconciled, make sure you’ve picked up any errors or adjustments from earlier in the year.
If you need to submit Taxable Payment Annual Returns for your subcontractors (TPAR) are due on 28th August.
Once all those lodgements are finalised, you would have reviewed everything backwards and forwards and then you’ll be ready for your accountant to prepare your tax return.
Keep calm, its only End Of Financial Year!
