As the new financial year commences, we’d like to provide some timely reminders, key dates and information ahead of finalising your tax affairs for 2020/21, and some things you need to be aware of over the next 12 months.
Key Dates for July
14 July – Single Touch Payroll finalised
21 July – Monthly BAS return for June due.
28 July – Make quarter 4 super guarantee contributions to funds by this date (if not paid earlier)
Three End Of Financial Year Payroll Tasks
1. Single Touch Payroll Finalisation
Due date is 14th July 2021
- MYOB AccountRight link to steps: End of year finalisation with Single Touch Payroll reporting
- Xero Link to EOFY Payroll Steps: Perfect your payroll this EOFY
2. All Employers (including those with closely held employees) need to be using Single Touch Payroll (STP) Compliant software from 1 July 2021
For example if you operate your business through a company or trust structure which employs you, you will need to adopt STP compliant software into your business. Most accounting software providers have a solution available, speak to your bookkeeper or accountant if you aren’t sure.
3. Reminder that the Superannuation Guarantee (SG) Rate increases from 9.5% to 10% from 1 July. Look out for any communications from your payroll software provider
- Xero: so long as your pay templates reference the default statutory rate, there is nothing for you to do. Xero will automatically update the rate (like it does tax tables). Updates to superannuation guarantee contributions
- MYOB has recommended that you check the rate in set up. Changing the superannuation guarantee rate
Super changes for 2021/22
- SGC Rate: As mentioned above, the SGC rate increases to 10% for all wages paid from 1 July.
- The concessional contributions cap has now increased to $27,500, up from $25,000.
- The non-concessional contributions cap is now $110,000, up from $100,000.
Claiming Work-Related Deductions
When you do your tax do you just claim “what you claimed last year”?
Technically that is not allowed. You need to be able to substantiate your deductions and circumstances may change so you need to be considering that.
For example, if you are working from home more, then your travel and laundry expenses will be substantially different.
The ATO is data matching everything this year and checking if people are claiming the same as last year.
As the pandemic forced swathes of the workforce to work from home, work-related expenses are expected to spike for the 2021 income year. However, the ATO also expects some expenses, like travel, will decrease compared to prior years. In general, the ATO expects to see a downward trend in expense claims related to clothing & laundry, self-education, car and travel.