There have been a few changes that will affect business owners and individuals that came into effect from 1 July 2019. The first thing that most people will be aware of is the additional tax refunds that individuals were expecting to receive and the second is Single Touch Payroll (STP). The combination of these resulted in the MyGov website crashing as well as the ATO being overrun with tax and STP phone calls.
It is important for individuals to realise that not everyone will get an additional refund of $1,080. There are different tax offset amounts available depending on your taxable income. If you earn less than $37,000 then the maximum tax offset you can receive is $255. Between $37,000 and $90,000 this offset increases to a maximum of $1,080. However it is important to know that the offset simply reduces tax payable which in some cases may not result in a refund.
Single Touch Payroll also came into effect for small businesses with 19 or less employees from 1 July. However research has shown that a significant number of small businesses, particularly businesses with less than 5 employees, were not aware of this change. STP requires employers to report wages and super information to the ATO after each pay run is processed. This information will also be available on MyGov accounts and will eliminate the need for employers to issue income statements (previously payment summaries) to employees.
Business owners will also need to be aware of the increases in Fair Work Award pay rates if employees are paid under a specific award. With a well-known celebrity chef recently being found to have been underpaying employees resulting in him paying millions in back pay as well as fines, it is essential for employers to be aware of their requirements in paying the correct pay rates to employees.
These changes reinforce the need to seek expert advice regarding any tax or business issues. A good accountant or business adviser should also keep you informed of any changes that you need to be aware of!
If you would like a no obligation chat with us regarding any of these issues, please call or email us at UHY Haines Norton on 4972 1300 or email info@uhyhncq.com.au