Considerations for Employers

Late Lodgement Penalties 

The ATO has increased penalties for late lodgement of Business Activity Statements (BAS) and Income Tax Returns (ITRs). These penalties now range from $210 to $1,050 per lodgement, depending on your business’s size and history. It is also now more challenging to have these penalties waived, post-COVID19.

Super Guarantee (SG) contributions

The ATO is closely watching Super Guarantee (SG) payments using Single Touch Payroll (STP) data. Employers must make SG payments on time and in full to avoid penalties and legal actions. SCM is here to help you meet these requirements accurately and on time.

Workers Compensation insurance

New South Wales and Victoria have strict rules for Workers Compensation insurance to ensure employees are covered for workplace injuries or illnesses. Non-compliance can result in severe penalties. Employers in NSW can get insurance through iCare, and those in Victoria through licensed insurers overseen by WorkSafe Victoria. Staying informed and maintaining proper insurance coverage is essential to protect your employees and avoid fines.

Federal Budget Highlights 

The Federal Budget for May 2024 introduced several measures aimed at easing financial burden and providing relief for taxpayers. 

Key highlights:

• Tax Cuts:  From July 1 2024, tax rates will be lowered to prevent individual from paying more taxes if their income increases slightly, and encourage additional work hours.
• Medicare Levy Thresholds:  The Medicare levy low-income thresholds will be raised, exempting more low-income earners from the levy or reducing their payment. For instance, the threshold for singles will increase to $26,000.
• Energy Bill Relief:  Households will receive a $300 rebate on electricity bills, and eligible small businesses will receive a $325 rebate as part of a $3.5 billion initiative to cut energy costs.
• Support for Renters:  The maximum rates of Commonwealth Rent Assistance will increase by an additional 10%, following a previous 15% increase, providing further support amidst rising housing costs.
• Cheaper Medicines:  There will be a one-year freeze on the maximum PBS patient co-payment, with a five-year freeze for pensioners and concession cardholders, making essential medicines more affordable.
• Student Debt Relief:  The government will cut $3 billion in student debt for over 3 million Australians, and the indexation rate for HELP and other student loans will be capped to the lower of CPI or the Wage Price Index.

Please contact your SCM Adviser / Accountant if you wish to discuss the recent Federal Budget changes and how they might impact your personal circumstances. You may also visit the 2024/25 Budget website for more information.

Paul Tucker – Managing Partner, SCM Accounting and Advisory
Ian Bennet and Pramesh Billimoria – Principals, SCM Accounting and Advisory