July 2021 Newsletter
- Superannuation Guarantee Increases to 10%
- Minimum Wage rises by 2.5%
- Your Super Warning – check Super Insurance
- ATO sets sights on cryptocurrency investors
- Victorian Wage Theft laws commence 01 July
- Single Touch Payroll Changes from 01/07/2021
Announcements:This month we wish a very Happy Birthday to Xavier, Paula & Joanne!
Important ATO Dates
|Lodgement Program||Due Date|
|End of financial year – Start preparing STP Finalisation Report||30/06/2021|
|Payers must issue PAYG withholding payment summaries to payees||14/07/2021|
|Quarter 4 (April–June) PAYG instalment activity statement||21/07/2021|
|June monthly activity statements||21/07/2021|
|Quarter 4 (April–June) activity statements||28/07/2021|
|Quarter 4 (April–June) PAYG instalments notices (forms R and T)||28/07/2021|
|Quarter 4 (April–June) GST instalment notices (forms S and T)||28/07/2021|
|Quarter 4 (April–June) super guarantee contributions||28/07/2021|
Back on the 12th of July, 1990
- “Les Miserables,” opens at National Theatre, Washington
- Boris Yeltsin quits the Soviet Communist Party
- In Soweto, South Africa, Shanty town women strip to the waist and confront bulldozers sent by authorities to demolish their homes
- Richard R Briggs, dies after short illness at 71
- And local accounting teacher Brian Campbell Watts left teaching to become an accountant at a small accounting practice in Horsham called Somers Meister
Nearly 31 years later at the young age of 70, Brian has announced his intentions to commence retirement where he hopes to travel around Australia with his supporting wife, Robyn, spend more time with his grandchildren in Ballarat, further pursue his passion for pigeon racing and if time permits improve his golf handicap!
When Brian first joined the practice he was one of three accountants and four admin staff who used calculators and typewriters to process tax returns. Today Watts Price Accountants has 21 staff based in Horsham and another 2 in Rupanyup that utilise the latest technology and industry best practices (and thankfully there are no typewriters to be found)!
Brian has needed to adapt to many different roles and demands during those 30 years. In 1991 he was thrust into the role of partner when Brian Somers exited the business. Brian’s leadership skills are evident in his professionalism, drive and commitment to improve the business which saw the business substantially grow with him driving change. None of this growth would have been possible without good hiring decisions, a process that Brian drove, and taking a few calculated risks.
Brian has been a driving force behind the Wimmera Farm Benchmark Reports, he has profiled the practice through his Tax & Property articles and seminars as well as brought many fantastic business leaders to Horsham through Business Horsham for the benefit of the entire community. He has brought several consultants into our practice over the years to drive improvement and this was recognised in 2010 when the firm took out the Powercor Wimmera Business Awards best Service firm award. That same passion for constant improvement was channelled towards business improvement and consulting for a number of Horsham businesses via a ‘Working on Your Business’ program. This is just a few of the many examples of what this tireless business leader was able to achieve.
Brian will certainly be missed but its a testament to his commitment to the practice that we have extremely capable team members ready to step in and support the firms valued clients, many of which have been seeing Brian for as long as Brian has been practising accounting.
From the team at Watts Price, thank you Brian. You have been a leader, teacher, mentor, colleague and friend to us all and we will be eternally grateful for the opportunities you have created. Best wishes on your retirement!
Super Guarantee Increase – important notice!
On 1 July 2021, the super guarantee rate will rise from 9.5 per cent to 10 per cent. Some pay periods will cross over between June and July when the rate changes.
The ATO advises that the percentage employers are required to apply is determined based on when the employee is paid, not when the income is earnt.
The rate of 10 per cent will need to be applied for all salary and wages that are paid on and after 1 July 2021, even if some or all of the pay period it relates to is before 1 July 2021.
That means, if the pay period ends before 30 June, but the pay date falls on or after 1 July, the 10 per cent rate applies on those salary and wages which are ordinary time earnings. The date of salary and wage payment determines the rate of super guarantee payable, regardless of when the work was performed.
For example, if the work was done
- in June (or partly in June and partly in July) but employees were paid in July, the rate is 10 per cent and contributions totalling 10 per cent of the employee’s ordinary time earnings for the September 2021 quarter must be made to the employee’s super fund by 28 October
- in July but employees were paid in advance (before 1 July), the rate is 9.5 per cent and contributions totalling 9.5 per cent of the employee’s ordinary time earnings for the June 2021 quarter must be made to the employee’s super fund by 28 July.
How to update your software to reflect the new changes
Note: Quickbooks Online, Xero & KeyPay will update automatically unless you have set up non-default superannuation categories!
- Go to the Payroll command centre and click Payroll Categories.
- Click the Superannuation tab.
- Click the blue zoom arrow to open the Superannuation Guarantee payroll category.
- Make sure the Calculation Basis is set to 10.00%. If it’s not, you will need to update it.
- Remember to check all the superannuation guarantee categories that you use – you may have set up your own categories that will also need updating.
- Go to the Payroll menu and choose Employees.
- Click an employee’s name.
- Click the Superannuation tab.
- Under Super guarantee, make sure the Employer contribution is set to 10%. If it’s not, you’ll need to update it.
- Click Save.
- Repeat for each employee.
New rules mean a greater number of SMSFs will need an Electronic Service Address (ESA) going forward including:
- any SMSF receiving rollovers into the fund (eg on establishment of the fund), and
- any SMSF rolling benefits out of the fund (eg on windup of the fund).
If either of the above scenarios affect you and you do not have an ESA please contact our office.
Business Portal Retirement
The Business Portal will now be retired at the end of July, less than four months after the Tax Office officially launched its new Online services for business. If you haven’t already you need to start transitioning across to using Online Services.
To access Online Services https://onlineservices.ato.gov.au/business/
Single Touch Payroll for Closely Held Payees
- Report actual payments on or before the date of payment
- Report actual payments quarterly when your activity statement is due
- Report a reasonable estimate quarterly when your activity statement is due
- family members of a family business
- directors or shareholders of a company
- beneficiaries of a trust
How to lodge the quarterly STP report The quarterly STP report needs to be lodged through an STP-enabled solution which must be registered with the ATO. You can either lodge the report yourself or have your registered agent lodge on your behalf. Please note that the STP report can’t be lodged through ATO portals. It is not an additional label on your activity statement.