As the 2018-2019 financial year begins, businesses are starting to complete their bookkeeping and put their taxes in order for the new financial year.
The new fiscal period is an opportunity for businesses to work smarter and implement the many changes surrounding payroll and HR for next year.
4 of the most important changes are:
- The minimum wage increase
The FWC’s decision to increase the minimum wage by 3.5% means that employers will need to be doubly sure they are paying their employees with the correct award rates, as the increase has been applied to all modern award wages. The foundU platform takes care of this, letting employers manage statutory pay increases, which are updated automatically with a single click. For more information on the minimum wage increase, see our previous article. For instructions on how to update rates with the foundU Platform, click here.
- Single Touch Payroll
Single Touch Payroll is the single most influential change to reporting in Australia, and it’s essential all businesses are fully on board. Mandatory for all businesses by July 2019, STP gives the ATO a direct, digital connection to employers by reporting and paying employees simultaneously. The foundU Platform is a government-approved, SBR and STP enabled solution. For more information on STP, visit this page.
- Employees must be registered with myGov
This point is essential for STP implementation, as all employees will view year-to-date salary wage amounts, PAYG withholdings and employee superannuation contributions through their individual myGov account. Businesses should seek to register all employees as soon as possible.
- R&D Changes
The new fiscal year is an opportunity for businesses to reevaluate their finances, and begin planning for the year ahead. This is especially relevant after the $4 million cap on the R&D tax concession was announced in May.
The next financial year will be one of change and adaptation, especially with the introduction of STP and the increase to the minimum wage. Businesses that organise these tasks early will be at an advantage by June next year.
Disclaimer: This article does not constitute financial advice. Always seek personal advice, consult a qualified financial advisor, and do your own research before taking any action as to finances