Personal Income Tax & Superannuation Changes in Australia

By: Mcfillin Accounting
BRISBANE, Australia - July 10, 2024 - PRLog -- The personal income tax cuts came into effect in Australia on 1 July 2024. At the same time, the superannuation guarantee (SG) rate increased by 0.5% to 11.5%. For employers, it's critically important to ensure that your payroll system, and all interactions with it, like salary sacrifice agreements, are assessed and updated. Your PAYG withholding will also be impacted. The ATO have recently warned employers to be vigilant about their super guarantee obligations:
  • Are you paying super guarantee to the right people? The definition of an employee for SG purposes is broad and, in some cases, extends beyond typical classifications. Temporary residents, backpackers, and some company directors working in the business, family members working in the business, and some contractors must be paid SG. Check your classifications are correct for SG purposes.
  • Check the fund details are correct for the employee and the employee's tax file number has been provided to the super fund. It's the employer's obligation to ensure that SG for the employee is directed to the right super fund account.
  • Ensure SG is paid into the employee's fund by the quarterly due date (next SG payments are due by 28 July). If your business misses the deadline, the super guarantee charge applies (even if you pay the outstanding amount quickly after the deadline).

Learn more about other changes by visiting
Source:Mcfillin Accounting
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Tags:Personal Income Tax
Location:Brisbane - Queensland - Australia
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