Business Update April 2022
Welcome back to our Business Update!
Super to Cover More Employees
From 1 July 2022, you will need to pay super to your employees who earn less than $450 per month, provided they meet other eligibility requirements. This expands super guarantee eligibility so employees can receive super regardless of how much they earn. These new rules apply to the first payroll payment of the new pay year, regardless of the pay period. If you need assistance with updating your systems to comply, one of our consultants can assist.
Single Touch Payroll Phase 2 (STP2)
Benefits for employers
The ATO will use the STP2 information to streamline employer interactions. For example:
- You’ll no longer have to send the ATO your employees’ tax file number (TFN) declarations. Your employees will provide it to you, and you’ll need to keep it with your employee records.
- If you’re using a concessional reporting option, such as for closely held payees or for inbound assignees, you’ll be able to tell the ATO through reporting income types.
- If you make a Lump sum E lump sum Epayment, you won’t need to provide Lump sum E letters to your employees. You’ll have included the amount and the period it relates to.
- If you change software or your employee’s payroll ID, you can tell the ATO in your STP report if your solution has this functionality. This will help fix issues with duplicate income statements for employees in ATO online services through myGov.
The ATO will also share payroll information you report to them with Services Australia. They’ll use it to streamline requests:
- for you to provide or confirm employment and payroll information about your employees
- from your employees to provide employment and payroll information such as pay slips for prior periods.
You may no longer need to provide separation certificates when your employees leave. The date and reason an employee leaves will be in your STP report.
You can also voluntarily report child support deductions or garnishees (or both) through STP. This reduces the need to send separate remittance advices to the Child Support Registrar.
Benefits for employees
Some changes under Phase 2 will help streamline interactions for employees, such as:
- Making it easier for employees at tax time as the ATO will have better visibility of the types of income they’ve received and where it should be pre-filled on their individual income tax return.
- Over time, the new information reported will allow the ATO to tell employees if they’ve provided you with incorrect information that may lead to them getting a tax bill. For example, where an employee hasn’t notified you that they have a study and training support loan.
What you need to do NOW to be STP2 Compliant
The ATO has a great checklist HERE for employers.
If you are already a Bookwiz payroll client, we will ensure your payrolls are ready in July 2022, if you are not a Bookwiz payroll client and need support with this, reach out to us so we can arrange for a consultant to provide support.
Business Assistance Package for WA Businesses
The Level 2 COVID-19 Business Assistance Package is available for businesses in Western Australia most impacted by restrictions. The assistance includes a $66.8 million Small Business Hardship Grants Program, $2.8 million of payroll tax relief for large hospitality businesses, and $2.1 million for a COVID-19 Commercial Sporting Franchises Support Program.
Bonus Tax Deductions for Small Businesses
The Technology Investment Boost allows small businesses to claim 120% of the costs of new technologies and training courses to upskill staff as deductions. An annual cap of $100,000 will apply to eligible technology expenditure, with the initiative set to last until 30 June 2023.
Latest Changes in Travel Rules
The requirement for people travelling to Australia from overseas to test negative for COVID-19 before arrival has been lifted. A ban on international cruise ships coming to the country and a rule preventing rapid antigen testing price gouging have also ended. You can find out more about these changes here.
Australia Crypto ETF Market Hearts Up
21Shares, which has $2.5 billion in assets under management, has partnered with ETF Securities to launch a bitcoin (BTC) ETF and an ether (ETH) ETF. These will be the first in Australia to invest directly in the underlying assets.
Safe Transition Industry Support Package
The WA Government has launched a $77 million Safe Transition Industry Support Package to assist eligible businesses and individuals in sectors most affected by the decision to delay the full reopening of WA’s borders. It includes nine support programs for the international education, tourism, aviation and events sectors.
Pandemic Leave Disaster Payment
People who are forced out of work to isolate due to being infected or being a close contact are eligible for the Pandemic Leave Disaster Payment.
You are also eligible if you are caring for a child under 16 years old who is a close contact or infected, or someone with a disability or a severe medical condition who is a close contact of someone with COVID-19.
You can find more information about Pandemic Leave Disaster Payment conditions specific to your state or territory here.
Support for Small Businesses
If your business is struggling, the ATO offers a wide range of support for those affected by the pandemic, natural disasters, mental health issues, or financial difficulties.
Upcoming Key Dates
- 21 April- March monthly BAS due
- 28 April- March quarter super guarantee due
- 28 April- March quarterly BAS due
- 28 April- March quarter PAYG instalment due
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.