July 1 saw an increase to the superannuation guarantee (SG) rate payable to employees and some contractors. While the increase from 10.5% to 11% may seem straightforward, there are complexities involved especially in the common case where the work to which superannuation was owed was performed in June but the employee was not paid for that work until July. There are other scenarios that are also complex. This piece also provides guidance on which amounts paid to workers attract SG, and how the SG rate will increase going forward.
The new financial year is traditionally a time that business owners review their operations, including the structure through which they operate. Broadly, there are four main types of structures – company, trust, sole trader and partnership. As your business grows, and your personal circumstances change it is prudent to review your structure. Factors that you should take into consideration in reviewing your structure include asset protection, legal tax minimisation, ability to admit other business partners, record-keeping and compliance burdens, and more.
Meanwhile the small business lodgment amnesty has now commenced. The amnesty was announced in the recent Budget. It applies to certain tax obligations that were originally due between 1 December 2019 and 28 February 2022 and runs from 1 June 2023 to 31 December 2023.
We hope you will find the topics interesting and thought provoking.
Please contact us if you wish to discuss how the points raised in this newsletter specifically affect you.