Welcome to the inaugural Monthly Newsletter from A Girl Friday!

The basics of the financial world with tips, hints, links & summaries to interest you.

Superannuation

A number of superannuation changes will take effect from 1 July 2022 including:
1) The $450 monthly earnings threshold for superannuation contributions will be removed. Employers will now be required to pay the superannuation guarantee on the wages of employees’ earning less than $450 per month. Employees under 18yo, unless covered by a workplace agreement, need to work 30+ hrs in a week.
2) Superannuation Guarantee rate increases to 10.5% from first pay run after 1 July 2022.

Missed & Late Super Guarantee Payments

If you do not pay an employee’s super guarantee on time and to the right fund, you must lodge the superannuation guarantee charge (SGC) statement and pay the SGC to the ATO.

The superannuation guarantee charge is made up of:

  1. the super guarantee shortfall, made up of:
    • super calculated on salary and wages (including any overtime)
    • any choice liability, based on the shortfall and capped at $500
    • nominal interest of 10% per annum (accrues from the start of the relevant quarter)
  2. an administration fee of $20 per employee, per quarter.

The SGC is not tax-deductible.

NOTE: Superannuation for the period 1 January – 31 March MUST be paid in full by 28 APRIL 2022

ATO – https://www.ato.gov.au/business/super-for-employers/missed-and-late-super-guarantee-payments/

Single Touch Payroll Phase II

The mandatory start date for STP Phase 2 reporting was 1 January 2022. Xero, MYOB & some other accounts solutions, have received an extension by the ATO, and can commence STP2 up to 31 December 2022.

STP works by sending tax and super information from your STP-enabled accounting solution to the ATO when payroll is processed.

STP2 doesn’t change the payments you need to report through STP, but it does change how those amounts need to be reported.

Employee Separation Certificates are no longer required, as the reason why an employee has left the business will now be provided via STP reports.

Clients of  A Girl Friday can start to introduce STP between 1 Jul -31 Dec 2022. We will contact you in the coming months to discuss the new requirements, Until then, please follow the below link if you are an employee.

https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-Phase-2-employer-reporting-guidelines/?page=1

Business Partner Feature

Goran is the head adviser at Finance and Risk Consultants, where the professional advisers are committed to finding solutions for you and/or your business that are tailored to your specific needs. Goran and his team are positioned to provide financial advice and recommending appropriate financial products/strategy in – superannuation (including SMSF), personal investment, investment property, debt management and kids education plans.

Finance and Risk Consultants professional advisers will work with you, your Accountants/Solicitors and other professional advisers to ensure our strategies are appropriate for you and/or your business. We value the strong relationships built over time with our clients.

Goran Gorgievski – Authorised representative 227440          info@financeandrisk.com.au  |  Tel: 02 8338 0988 https://www.financeandrisk.com.au/   

Book your free 30-minute consultation here.

Tip Of The Day – ALWAYS Separate your business and personal expenses and bank accounts.