ATO Update: January 2023
The Australian Tax Office has provided MEA with an update designed for small business owners and employers. Read the latest about the super guarantee, business support grants and tax declarations, director IDs and more.
Have you paid Super Guarantee on time?
The next super guarantee (SG) quarterly payment due date is 28 January, for the quarter ended 31 December 2022. Make sure you pay in full and on time, and don’t forget about the two changes to SG that commenced 1 July 2022:
- the SG rate increased from 10 per cent to 10.5 per cent.
- the $450 per month eligibility threshold was removed.
If you miss the due date, you could face an additional penalty of up to 200 per cent of the SGC.
Received a business support grant? Check whether you need to include this in your tax return
Most grants are generally considered assessable income – unless the grant is formally declared non-assessable non-exempt (NANE) income, and you meet the criteria for not including it in your tax return.
Interest on early payments cheque threshold change
Interest on early payments (IEP) is interest paid when you make a payment towards certain tax liabilities more than 14 days before the due date.
IEP is paid directly to your nominated bank account, so make sure your financial institution account details are up to date.
If your bank account details aren’t up to date, you will only receive a cheque for IEP if the amount is over $9.99.
Lesser amounts will remain in your account for a maximum of 12 months provided the amount has not been offset against an existing tax debt or paid with another credit.
If your bank account is still not up to date after 12 months, then the IEP credit will be issued by cheque.
If you update your bank account details within the 12-month period, then the IEP credit will be paid directly to your bank account after the 12 months have passed.
You can request payment of an IEP credit retained in your account:
- through secure mail in Online services for business
- in writing.
Director ID compliance action
Over 2 million directors have already applied, don’t get left behind. It’s a criminal offence for directors not to apply and penalties may apply. If you’re a director of an Australian company or registered Australian body under the Corporations Act 2001 (Corporations Act) and do not have a director ID, you must apply now. Find out more
There has never been a better time to switch to eInvoicing
Save time and money and improve your digital security by making the move to eInvoicing.
Registrations have more than doubled this year, with over 25,000 businesses now on the network and ready to eInvoice with you. This includes 96 Australian government agencies who offer 5-day-payment terms for eInvoices, which can help boost your cashflow. Contact your agency account manager to discuss if you are eligible.
In addition, there are now 33 eInvoicing Ready products available, so there will be one to suit your needs, including some that offer free or low cost options.
The ATO will be hosting a webinar with small business product demonstrations from MYOB, Xero and Reckon on Wednesday, 8 February 2023. It’s a great opportunity to see how quick and easy it is to get started – Register now.
More information about the benefits and how to get started.
Final JobMaker Hiring Credit claim period now open
The end of the final claim period for JobMaker Hiring Credit payments is approaching fast.
If you’re registered, you must have your Single Touch Payroll (STP) reporting completed by 28 January and your claim for JobMaker Hiring Credit lodged by 31 January 2023. The scheme is now closed to new registrations.
For more information on how to help your clients, view ATO’s step-by-step guide.
Don’t get stuck with an ESST
Electronic sales suppression tools (ESSTs) are used to manipulate sales records in a point-of-sale system (POS) so a business can under-report its income and avoid paying the right amount of tax. Producing, supplying, using or just possessing an ESST is illegal and significant penalties can apply. We’re taking action to identify and address ESSTs. If you’ve had any involvement with an ESST, let ATO know at [email protected] and we’ll help you set the record straight. The ATO website can help you work out if your POS system is affected.
Starting a small business? Our webinars can help!
If you’re new to business, start off on the right foot by developing good record keeping habits and understanding your tax obligations. By learning the basics, you’ll give your business the best chance of success.
We have several webinars to help you get it right, including:
- Starting a small business: join this 60-minute session to learn about the difference between a hobby and a business; business structures; and the registrations that you may need.
- Introduction to business records: in this 60-minute session you’ll discover the benefits of developing good record keeping habits and the tools to help you manage your records.
Find out more about ATO’s small business webinars and workshops and remember to register early to secure your spot.
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