We hope that the new financial year is off to a strong start for your business.
As trusted partners in your financial journey, Halpin Partners is dedicated to providing you with timely updates and valuable insights to navigate the ever-changing accounting and taxation landscape. In this newsletter, we would like to highlight several key updates effective from 1st July 2023. We encourage you to review the following information and take necessary actions to ensure compliance and optimise your financial outcomes.
Single Touch Payroll – Annual Finalisation
The end of the financial year marks an important time for Single Touch Payroll (STP) annual finalisation. This process involves reconciling your employee payroll details with the Australian Taxation Office (ATO).
Changes to Minimum Award Wages Rates
The Fair Work Commission has implemented changes to the minimum wage rates for various modern awards, effective from 1st July 2023. It is important to review your employees’ wages and ensure compliance with the updated rates to avoid any potential penalties.
Change to Superannuation Guarantee Rate
Effective from 1st July 2023, the Superannuation Guarantee (SG) rate has increased to 11%. Employers are now required to contribute a minimum of 11% of each eligible employee’s ordinary time earnings to their chosen superannuation fund. It is crucial to review your payroll systems and adjust contributions accordingly to meet the new SG rate.
Total Super Balance (TSB) increase
The TSB threshold for accessing certain superannuation measures has increased to $1.7 million. It is crucial to assess your TSB and understand the impact on your superannuation strategies and contributions.
General Transfer Balance Cap (TBC) increase
The TBC has increased to $1.7 million, affecting the amount of superannuation that can be transferred into the retirement phase.
Temporary reduction in super pension minimum drawdown
In response to COVID-19, the government temporarily reduced superannuation minimum drawdown requirements for account-based pensions and similar products by 50%. From July 1st 2023 the 50% reduction in the minimum pension drawdown rate will NO longer apply.
From 1 July 2023, the government’s standard minimum drawdown rates, will apply to all account-based pensions:
|Age at 1 July Each Year||Temporary Minimum Drawdown|
Rates End 30 June 2023
|Standard Minimum Drawdown|
Rates from 1 July 2023
|Preservation age to 64||2.0%||4.0%|
|65 to 74||2.5%||5.0%|
|75 to 79||3.0%||6.0%|
|80 to 84||3.5%||7.0%|
|85 to 89||4.5%||9.0%|
|90 to 94||5.5%||11.0%|
|95 and over||7.0%||14.0%|
Tax Updates from the ATO from 1 July 2023
The Australian Taxation Office (ATO) has introduced various tax updates for the new financial year. These updates include changes to tax rates, thresholds, deductions, and reporting requirements. Our team stays up to date with the latest ATO updates and can provide guidance tailored to your specific circumstances.
If you would like to discuss this further, please do not hesitate to contact the Halpin Partners team on (07) 4052 0800.