Changes for your business to be aware
With the start of the financial year upon us, here is a list of new rules that you need to be aware of for your business.
Division 7A rate
The Division 7A ATO benchmark interest rate for 2023-24 is 8.27%.
Superannuation guarantee rate change
From 1 July 2024, the superannuation guarantee obligation for employers will rise from 11% to 11.5% for contributions made for employees.
Finalise STP records:
The ATO reminds small businesses with employees that STP information must be finalised by 14 July. This important end-of-year obligation ensures that employees have the correct information required to lodge their income tax return. STP information for all employees paid in the financial year, even terminated employees, must be finalised.
Just remember that extensions can potentially apply for closely held employees (for example, family members of a family business, directors or shareholders of the company and beneficiaries of the trust).
The other key reminder is that new personal income tax rates and thresholds come into effect from 1 July 2024. This will impact on PAYG withholding amounts for the 2025 financial year, so it will be prudent for employers to check that the correct PAYG withholding tax tables are being used and their payroll software is using the new withholding rates from 1 July onwards.
If you need to know more about the items discussed here, please contact our office for more information.
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