SUPERANNUATION GUARANTEE PERCENTAGE INCREASE
Employers are reminded that the Superannuation Guarantee Percentage is increasing from 10.5% to 11.0% from the 1st of July 2023.
Most payroll software will automatically apply the increase from that date. However, employers should double check to ensure that they continue to meet their obligations into the new financial year.
Many employers look at pay increases in July each year as part of their usual business processes and/or in response to the Fair Work Commissions Annual Wage Review.
With inflation continuing to run high, the combined impact of the Annual Wage Review and Superannuation Guarantee Percentage increase are likely to put pressure on business profitability.
As such, businesses should be factoring these items into their remuneration review and budgeting processes to ensure that they respond appropriately to maintain their margins.
Additionally, employers should be reviewing employee salary sacrifice arrangements to ensure that they are revised where necessary to take account of the Superannuation Guarantee Percentage increase. Eg to ensure that superannuation contribution caps are not exceeded.
If you need assistance to implement the Superannuation Guarantee Percentage increase or to understand the impact on your business, please get in touch.
FEDERAL BUDGET 2023-24
On Tuesday the 9th of May, the Treasurer Jim Chalmers will hand down the 2023-24 Federal Budget.
With global and domestic economies struggling with high inflation and the prospect of recession, Mr Chalmers and the Albanese Government will certainly have their work cut out.
As usual, we will be keep you updated with a comprehensive analysis of the budget shortly after Tuesday the 9th of May.
We will also be diving into the detail of the budget on the Sky Accountants Podcast which you can catch on our website, YouTube or wherever you get your podcasts.
TEMPORARY FULL EXPENSING
The Temporary Full Expensing rules were introduced by the Government in response to the COVID-19 pandemic with the purpose of stimulating the economy.
Under the Temporary Full Expensing rules, businesses with turnover of less than $5b can claim an immediate tax deduction for new and eligible second-hand assets first held, used or installed ready for use between 7:30pm AEDT on 6 October 2020 and 30 June 2023.
The Temporary Full Expensing rules offer a cashflow benefit through the ‘front-loading’ of the tax deductions for assets that would otherwise need to be depreciated over a number of years.
The Temporary Full Expensing rules were originally scheduled to end on the 30th of June 2022 but were extended to the 30th of June 2023 in the 2021-22 Federal Budget.
It is unlikely that there will be a further extension and businesses wishing to take advantage of the Temporary Full Expensing rules should act now to get in before the 30 June 2023 cut-off.
If you require further information on the Temporary Full Expensing rules, please get in touch.
ASIC REPORT ON SCAM PREVENTION, DETECTION & RESPONSE BY THE FOUR MAJOR BANKS
On the 20th of April, ASIC released Report 761 detailing the analysis of their review of the current scam related activities of the big four banks.
The report details that more than 31,700 customers of the big four banks lost more than $558m to scams during the 2021-22 financial year.
This represents a 49% increase in affected customers and a 50% increase in financial losses from the year prior.
In the accompanying media release, ASIC has called for the banks to improve their approaches to handling scams.
Specifically, ASIC’s report found that:
- the overall approach to scams strategy and governance of Australia’s major banks was variable and less mature than expected;
- the banks had inconsistent and narrow approaches to determining liability;
- scam victims were not always well supported by their bank;
- there were gaps and inconsistencies in how the banks detect and stop scam payments; and
- Steps taken to help prevent customers falling victim to scams was varied.
Whilst we would all love to see the banks improve their scam handling processes, it is important for businesses and individuals to take an active approach to better protect themselves from scammers.
The Australian Competition & Consumer Commission’s ScamWatch website includes some useful resources to help protect you and/or your business from scams.
If you need a referral to a good IT provider to help you ensure that your IT systems and online activities are secure, please get in touch. We can also provide guidance on practices and procedures that can be adopted to protect your personal and business finances from scammers.
QUOTE OF THE MONTH
Calvin Coolidge, 30th President of America once said “I have found it advisable not to give too much heed to what people say when I am trying to accomplish something of consequence. Invariably they proclaim that it can’t be done”.
In our experience, there is much truth in Mr Coolidge’s words. It is all too common to encounter people who can tell you all the reasons why your idea will fail.
These people do serve a purpose, being to assist you to refine and improve your ideas.
However, we should never place too much stock in the words of naysayers.
The achievement of great things in life relies on having the courage and belief in one-self to attempt difficult endeavours.
The naysayers miss one very important detail – that there are very few things in life that are truly impossible.
Sky Accountants Ballarat
Phone: 03 5332 8855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 5428 1400
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437