The start of a new financial year presents an ideal opportunity for small business owners to ensure a smooth transition and set the stage for financial success. To help you navigate these important tasks, we've compiled a list of key action items. From payroll and tax obligations to superannuation changes, let's delve into these essential tasks that will keep your business on the right track.
Finalise Your Single Touch Payroll (STP) Declaration
By 14 July 2024, remember to finalise your Single Touch Payroll (STP) declaration and ensure all the information is accurate. STP streamlines payroll reporting to the Australian Taxation Office (ATO) and it's crucial to submit your finalisation declaration promptly.
Lodge Your Payroll Tax Declarations
If you operate in Victoria and have gross wages over 700k, you must lodge and pay your FY24 Victorian Annual Payroll Tax Reconciliation by 21st July 2024. Make sure to include fringe benefits provided to employees or eligible payments made to contractors when calculating the taxable value.
Taxable Payments Annual Report (TPAR)
For the year ended 30 June 2024, businesses in certain industries need to report the total payments they make to each contractor, each year. The following details need to be reported for the contractors:
- ABN
- Name
- Address
- Gross amount you paid for the financial year
- Total GST included in the gross amount you paid
You will need to submit your taxable payments annual report for 23/24 financial year by 28 August 2024.
ESS Reporting Obligations
If your business has an active Employee Share Scheme (ESS) arrangement, be aware of the ESS reporting requirements . You need to submit reports to both your employees (due 14 July) and the ATO (due 14 August) if any interests were acquired during the year. Consult with your accounting advisors for assistance and provide them with the necessary documentation.
Annual Workcover Reconciliation and Remuneration Declarations
In early July, you’ll receive your WorkCover Premium Renewal documents for FY25. Ensure you review the Declaration of Rateable Remuneration form and include all necessary payments, such as contractor fees. Conversely, be mindful of items that should be excluded, such as payments in lieu of notice or accrued leave. Overpaying on Workcover is common, so if you’re a Xero user, check out their website to learn how to process a final pay for redundancy or termination .
Changes to Superannuation
Starting 1 July 2024, the Superannuation Guarantee (SG) will increase by 0.5% to 11.5%. This means you must calculate and contribute the new rate on payments made to employees on or after 1 July, even if the work was performed prior to that date. Review employment contracts to address potential adjustments in base salaries, considering the impact on both employer costs and employee take-home pay.
Budgeting for FY25
Now is the perfect time to start considering your budget, cash flow needs, and business goals for the upcoming financial year. Whether you need assistance in creating a new budget or reviewing your existing one, our team is ready to provide valuable insights and support. Here's a quick list of things to consider as the new year begins:
- Bonuses
- Bad Debt Expenses
- Review of Fixed Asset Register & Instant Asset Write Off
- Prepayment of Expenses
- Stock on hand 30th June 2024
Work With Skilled Accountants and Business Advisors to Boost Your Growth
As a small business owner, staying on top of your financial obligations is crucial for long-term success. By addressing key tasks such as STP finalisation, payroll tax declarations, ESS reporting, WorkCover reconciliation, and understanding changes in superannuation, you'll be set up for growth in the new financial year. If you need help with any of the above tasks, get in touch with our skilled accountants for guidance tailored to your specific needs.
