Changes to Super for under - 18s
Alan Law • April 20, 2022
From 1 July 2022, you will need to pay super for your employees who are under 18 years old if they work more than 30 hours for you in a week.
This is because the $450-per-month threshold for super guarantee is being removed.
Employees who are under 18 will be eligible for super if they work more than 30 hours in a week, regardless of how much they’re paid.
For example, Jenny is 17 years old and works a 32-hour week once a month at her local hardware store, earning $382 before tax. She also works 6 hours a month as a barista for a cafe down the road.
As Jenny works over 30 hours in one week in her job with the hardware store, her hardware employer will need to pay her super from 1 July 2022.
As Jenny does not work 30 hours in a week in her job as a barista, she won’t be entitled to super for this work. Likewise, Jenny won't be entitled to super for any weeks she works less than 30 hours for the hardware store.
As we move closer to 1 July 2022, check your payroll and accounting systems have been updated so you can correctly calculate your employees' super guarantee payments.
On 14 May 2024, as part of the 2024–25 Budget, the government announced it will continue to provide support for small businesses by extending the $20,000 instant asset write-off limit for a further 12 months until 30 June 2025. This measure is now law. Under the measure small businesses with an aggregated turnover of less than $10 million, can deduct: the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2024 and 30 June 2025; an amount included in the second element (cost addition) of eligible depreciating asset's cost that they have incurred between 1 July 2024 and 30 June 2025, if they claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is: the first amount of second element cost incurred after the end of the income year in which the asset was written off; and less than $20,000. The $20,000 limit under the measures applies on a per asset basis, so small businesses can instantly write off multiple assets. Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that. In addition, pool balances under $20,000 at the end of 2024-25 income year can be written off. Are you running your own business and have no time to deal with tax issues? Contact us today, Sydney's leading accounting firm at ACP Accountants on 02-8046 7621, or simple drop us a line at info@acpaccountants.net.au.
If you employ staff, here are the important dates and obligations to remember throughout the year, to set yourself up for success. Super guarantee (SG) 28 January, 28 April, 28 July, and 28 October are the quarterly due dates for making SG payments. The SG rate is currently 11.5% of an employee’s ordinary time earnings. From 1 July 2025, the SG rate will increase to 12%. Ensure SG for your eligible employees is paid in full, on time and to the right super fund. If you don’t, you'll need to lodge a super guarantee charge (SGC) statement and pay the SGC to the ATO. Fringe benefits tax (FBT) 31 March 2025 marks the end of the 2024–25 FBT year. There are 4 key steps to nail your obligations for FBT tax time. Identify if you've provided a fringe benefit. Determine the taxable value to work out if you have an FBT liability. Lodge an FBT return and pay any FBT owed (if you have a liability) by 21 May 2025. If your registered tax agent lodges electronically for you, you have until 25 June 2025. Keep the right records to support your FBT position. Pay as you go (PAYG) withholding You need to withhold the right amount of tax from payments you make to your employees and other payees, and pay those amounts to the ATO. This helps your employees meet their end-of-year tax liabilities. Your accounting or payroll software, the ATO tax tables or online tax withheld calculator will help you do this. Single touch payroll (STP) Fina lize your STP data by 14 July 2025 for the 2024–25 year. This ensures your employees have the right information they need to lodge their income tax returns. If you have any closely held payees, you may have a later due date for those payees only. Remember to finalize all employees you’ve paid in the financial year. ACP Accountants are leading Sydney accountants and tax specialists. Please call us today on 02-8046 7621 if you need our help.
With the holiday season kicking off, you may be planning a celebration with your staff. Consider if fringe benefits tax (FBT) may apply or you could end up with an unexpected FBT liability. Before you hire a restaurant or book an event, make sure you work out if the benefits you provide your employees are considered entertainment related and if they’ll attract fringe benefits tax (FBT). This will depend on: the amount you spend on each employee when and where your celebration is held who attends - is it just employees? Or are partners, clients and suppliers also invited? the value and type of gifts you provide If you do provide entertainment-related fringe benefits, keep the right records to support this so you can calculate their taxable value. It's important to get on top of how FBT works before you provide perks and extras. Otherwise, you may end up with an unexpected FBT liability. For more information, please contact your Sydney business accountants – ACP Accountants on 02-80467621, or simply get in touch and email us at info@acpaccountants.net.au.