As a small business owner, the start of a new financial year can bring both excitement and a host of responsibilities. It’s crucial to stay informed and prepared for the changes and obligations that lie ahead. By addressing key aspects such as award pay rate increases, superannuation contributions, STP finalisation, WorkCover renewals, and budget planning, you can set your business up for success in the coming year. Let’s explore these important considerations in detail.
Award Pay Rate Increases:
One of the critical considerations for small business owners is the annual increase in award pay rates. Effective from the first full pay period on or after 1 July 2023, there will be a 5.75% pay rate increase. It is essential to review and adjust your employees’ wages accordingly to ensure compliance with the updated rates. Staying up to date with award changes demonstrates your commitment to fair and lawful employment practices.
From 1 July 2023, the superannuation guarantee rate will rise to 11% from the previous 10.5%. As a business owner, it’s vital to adjust your payroll systems to accommodate this change and ensure that your employees’ superannuation contributions reflect the new rate. This not only fulfills your obligations as an employer but also supports your employees in their long-term financial security.
STP Finalisation Declaration:
Small business owners using the Single Touch Payroll (STP) system must remember to complete the STP finalisation declaration by 14 July. This declaration confirms that you have completed the required reporting obligations for the financial year. Ensuring timely submission of this declaration helps streamline your payroll processes and ensures compliance with the Australian Taxation Office (ATO) requirements. Talk to your accountant if you need help managing this process.
WorkCover Renewals (in QLD):
If your business operates in Queensland, it’s crucial to renew your WorkCover insurance between 1 July and 30 September. Workcover insurance provides protection for your employees in the event of work-related injuries or illnesses. It is essential to review your coverage, update any changes in your workforce, and renew your policy within the designated timeframe to maintain legal compliance and safeguard your employees’ well-being.
New Budget for the New Financial Year:
As you step into the new financial year, it is the perfect opportunity to create a fresh budget for your business. Evaluate your financial performance from the previous year, identify areas for improvement, and set realistic goals for the upcoming year. A well-structured budget helps you monitor cash flow, plan investments, and make informed decisions that contribute to your business’s growth and stability.
Preparing for the new financial year is a crucial undertaking for small business owners. By addressing key considerations such as award pay rate increases, superannuation contributions, STP finalisation, WorkCover renewals, and budget planning, you can effectively navigate the changes and obligations that come with the new fiscal period. Staying proactive and informed allows you to maintain compliance, support your employees, and set your business on a path to success in the year ahead. Embrace these essential considerations and make the new financial year a time of growth and prosperity for your small business.
For more help on any of these End Of Financial Year Obligations, talk to the team at Victor Bimrose Accountancy.
At VBA we specialise in strategic tax advice, offering tax and financial reporting for individual income earners, family businesses, tradies and construction companies.
Victor Bimrose Accountancy Pty Ltd (ASIC No. 1259423) ABN 53 010 957 294 is a Corporate Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361.
Mark Foxley-Conolly (ASIC No. 1259421) is a Limited Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361
General Advice Warning: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.