HAPPY NEW YEAR 2023
As the 2022 financial year has come to a close, I thought I would welcome you with some relevant changes that will affect the majority of my client base for 2023.
Before starting with the tax changes, I do not have that elusive crystal ball that could tell you what would happen to the economy over the next 12-24 months! I can say that we will probably face a turbulent ride due to a few wacky world leaders!
The superannuation guarantee rate increases from 10% to 10.5% for superannuation payments made after 1 July.
The removal of the $450 per month eligibility threshold. That is, superannuation is paid on all wages now. Employers should be aware that they may need to provide employees with a Standard Choice form if they go into the superannuation stream for the first time.
Employers should ensure that their payroll software is updated to consider the changes mentioned above.
The amount that can be claimed as a deduction is $27,500 as it was in 2022.
- Single Touch Payroll 2
Essentially the main benefit of this is that all payroll reporting now will be transmitted to more Government agencies reducing the time for employers to deal with Government Agencies.
- 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 advise 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.
Disaggregation of gross
Your STP report currently includes a gross amount. This is the total of many different components and payment types. Because some of these are treated differently for social security purposes, you will now need to report more detail.
The reporting of income types is being introduced in Phase 2 to more flexibly:
- identify payments you make to your employees with specific tax consequences
- make it easier for them to complete their individual income tax return
- help us identify where you are using a concessional reporting arrangement.
Should you require any further information on STP 2 go to the following ATO link
“This is general advice only and not to be interpreted as individual advice specific to your situation. Contact us to discuss the best solutions for your needs.”
- Instant Asset Write-Off
This has been extended for another 12 months for assets that are business assets installed and ready for use by 30 June 2023 for assets costing $150,000 or less.
I do hope 2023 will be a successful one for all.
Should you have any questions on the items above, please contact on 02 9923 2959 or email@example.com