We are pleased to supply you with the latest edition of Client Alert, which contains information on a number of important taxation developments up to and including 27 May 2022.

  • What’s next on the agenda for the government? – With the election campaign finally over and a new government sworn in, many Australians will be wondering what a Labor government is likely to tackle over the next term.
  • Tax time 2022: ATO focus areas – This financial year, the ATO will again be focusing on a few key areas to ensure Australians are doing the right thing and paying the right amount of tax.
  • Single Touch Payroll: Phase 2 – Many employers may not yet be reporting the additional information required under STP Phase 2, but it’s important to be ready.
  • ATO resumes collecting aged debts – Taxpayers with aged debts paused during the COVID-19 pandemic should be aware that offsetting aged debts against tax refunds or credits has now resumed.
  • Operation Protego: detecting GST fraud – The ATO has seen a rise in schemes where people invent fake businesses and submit fictitious BASs to obtain illegal GST refunds.
  • More ATO action on super guarantee non-compliance – Firmer SG-related related recovery actions suspended during the pandemic have now recommenced, and the ATO will be chasing employers that owe super to their employees.

NEW SUPER GUARANTEE PAYMENT RULES TO COME INTO EFFECT

The ATO has reminded employers that from 1 July 2022 they will need to pay super for employees, regardless of how much they pay them. This is because the $450-per-month threshold for super guarantee (SG) eligibility is being removed. However, workers who are under 18 still need to work more than 30 hours in a week to be eligible. The ATO also emphasised that an employee’s eligibility for SG is determined by when they are paid salary and wages, not when they earn the income. This means, if they pay an eligible employee on or after 1 July 2022, the new rules will apply to the full amount, regardless of whether some or all of the pay period it relates to is before 1 July.

SUPER GUARANTEE RATE TO INCREASE ON 1 JULY

The ATO has reminded employers that on 1 July 2022, the super guarantee (SG) rate will increase from 10% to 10.5%. It also pointed out that the applicable rate will depend on when your employee is paid, not when the income is earnt. This means the new rate will need to be applied to any payments of salary or wages made on and after 1 July 2022, even if some or all of the relevant pay period is before 1 July. The ATO also stated that to prepare for these changes, employers should check their payroll and accounting systems are updated to incorporate the increase to the super rate.

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Please do not hesitate to reach out if you wish to discuss any of the points raised in this Alert.

Yours sincerely,

The Team at PHA