New Financial Year – Important Changes to be Aware of!

Happy New Year, well new financial year anyway! As the new financial year begins there are important changes that you may need to be aware of.

Super Guarantee Rate Increases

The super guarantee rate has increased from 9% to 9.25% from 1st July 2013. All payments made after this date need to reflect the new rate. It should also be remembered that the rate is going up by another 0.25% next year followed by 0.5% increases each year until it reaches 12%. Keep this in mind when negotiating employment conditions!

Super Guarantee to Apply for Employees aged 70+

Previously employees aged over 70 were exempt from the super guarantee provisions. This has been changed from 1st July 2013 with these employees now included at the new rate of 9.25%.

Building & Construction Industry Required to Report Contractors Payments

If you are in the Building & Construction industry and engage contractors you are now required to report these payments to the tax office. The required report can usually be done through your accounting software or can prepared manually on forms supplied by the tax office. Older accounting software may need to updated to have the reporting functionality.

The reporting needs to include the name and ABN of the contractor plus the GST total payments made to them during the financial year and any GST contained in these payments. The report is due for lodgement by 21st July each year.

 

If you need any assistance with adjusting your software or how any of the changes impact your business please don’t hesitate to contact us.