‍As a small or medium business owner, your responsibilities can be overwhelming, especially when it comes to managing employee payroll tax and Pay As You Go (PAYG) withholding. These areas can be complex and demanding, with various obligations, calculations, and deadlines.

At Attune Advisory, we understand the challenges you face, which is why we've created the below guide to help demystify these topics and provide guidance based on state and territory government revenue authorities and Australian Tax Office (ATO) requirements.

Understanding PAYG Withholding:

Pay As You Go (PAYG) withholding is a system where employers withhold tax amounts from their employees' payments and remit them to theAustralian Taxation Office (ATO). This system ensures that employees meet their annual tax liabilities. As you’re likely aware, the amount of tax to be withheld depends on the employee's earnings and the information provided in their Tax file number declaration but if you have any uncertainty around this, definitely reach out to the Attune team.

Employer Tax Obligations for PAYG Withholding:

As an employer, you have several tax obligations related to PAYG withholding. These include registering for PAYG withholding, withholding the appropriate amounts from employee wages, reporting and remitting these amounts to the ATO, providing payment summaries to employees, and submitting an annual report to the ATO.

Setting Up Employees for Tax and Super:

Setting up your employees for tax and super involves collecting Tax file number declarations, using tax tables to determine the amount to withhold, and making superannuation guarantee contributions for eligible employees. If you have multiple staff members, you’re probably across this, but if you’re hiring your first employee, give the Attune team a call and we can help you through the process.

Understanding Payroll Tax:

Payroll tax is a state and territory tax imposed on employers based on the wages they pay. The tax amount varies across states and territories, and specific thresholds determine when employers become liable for payroll tax.

Who Needs to Pay Payroll Tax:

Payroll tax applies to all employers whose total wages exceed the specific threshold set by their jurisdiction. If your totalAustralian wages surpass the threshold, you must register for payroll tax. Once again, if you’re looking for advice on your Payroll Tax requirements, we’re here for you.

Note there’s specific thresholds to be aware of when it comes to where your business operates and is located, so it’s worth chatting to the Attune team to ensure you’re covered with your Payroll Tax obligations.

Taxing Termination Payments and Superannuation:

Certain components of termination payments are subject toPAYG withholding, such as unused leave, redundancy payments, and payments in lieu of notice. Additionally, employers have an obligation to make superannuation contributions for eligible employees.

Employee Pay Rates and Conditions:

Pay rates and conditions for employees vary based on their industry, job, and any applicable awards or agreements. Fair Work Australia provides resources to help employers understand their obligations in this regard.

Employing Casual Workers:

Employing casual workers may involve different tax and super obligations. It's crucial to understand these distinctions and ensure compliance with the relevant requirements, and we can offer you tailored advice that suits your needs when looking to employ a casual worker.

At Attune Advisory, we offer expert advice tailored to your business needs. Book an appointment online or give us a call to receive tailored, strategic advice that will ensure your business is operating at its optimum level.

If you’d like some help navigating your Payroll Tax and PAYG, reach out to the Attune team on 1300 866 113 or send us an email to book an appointment.

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‍As part of the Australian Government's commitment to supporting small businesses and promoting energy efficiency, a new tax incentive known as the Small Business Energy Incentive was announced on 30 April 2023.

This incentive aims to assist small businesses in their energy transformation efforts, helping them save on energy costs while contributing to a more sustainable future. The Attune Advisory team is here to provide you with all the essential information you need to take advantage of this incentive, starting with some of the details as outlined below…

‍The Small Business Energy Incentive:

The Small Business Energy Incentive offers businesses with an annual turnover of less than $50 million an additional 20% tax deduction on expenditures that support electrification and more efficient energy usage. This means eligible small businesses can invest in assets or upgrades that promote energy efficiency and sustainability.

Eligible Investments:

The incentive allows small businesses to make investments in various areas, including:

• Electrifying heating and cooling systems to reduce reliance on traditional energy sources.
• Upgrading to more energy-efficient fridges and induction cooktops, minimising energy wastage.
• Installing batteries and heat pumps to optimise energy usage and reduce dependence on the grid.

‍Maximum Deduction and Eligible Expenditure:

Small businesses can claim a maximum bonus tax deduction of$20,000 through this incentive. The total expenditure eligible for the incentive is capped at $100,000. By leveraging this incentive, you can not only save on energy costs but also enhance the financial health of your business!

‍Timeline and Legislative Status:

To be eligible for the Small Business Energy Incentive,assets or upgrades must be first used or installed ready for use between 1 July2023 and 30 June 2024. It is important to note that this measure is not yetlaw. Stay updated on the latest developments and consult with the AttuneAdvisory team for personalised guidance based on your specific circumstances.

Benefits and Opportunities:

Small businesses play a vital role in our communities, and the Small Business Energy Incentive ensures they can actively participate in the ongoing energy transition. By making investments that lead to energy savings, small businesses can lower their operational costs and contribute to reducing emissions. The incentive aligns with the government's efforts to build a stronger, sustainable, and resilient economy, creating more opportunities for all Australians.

Looking to the Future:

The Small Business Energy Incentive, with an expected cost of $314 million over the forward estimates, has been strategically introduced to support small businesses in laying the foundations for future growth. It positions them to bounce back after a challenging period for the economy, allowing them to embrace energy efficiency and sustainability, leading to long-term success.

Contact Attune Advisory today to learn more about how this incentive can benefit your business and ensure compliance with the evolving legislation. We’re here to offer you tailored, strategic advice to set you up for success. Call the team on 1300 866 113 or send us an email to start the conversation.

The information provided in this blog post isbased on the available information as of the date of writing. Please consultwith us for the latest updates and personalised advice related to the SmallBusiness Energy Incentive.

The start of a new financial year brings along various changes that will impact almost everyone, from families and workers to business owners and retirees. As your trusted  Accountant, Attune Advisory is here to provide you with a comprehensive breakdown of the significant changes taking effect from July 1, 2023.
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Here's our snapshot:

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1. National Minimum Wage Increase: Effective from July 1, Australia's minimum wage will be $23.23 per hour, reflecting a 5.75% increase in award wages and an 8.6% increase in the minimum wage. This translates to $882.80 per week based on a 38-hour work week.
2. Farewell to LMITO (Low and Middle-Income Tax Offset): The temporary tax cut known as LMITO, or "lamington,"will no longer be available for the 2022-23 income year. LMITO provided tax relief to individuals earning up to $126,000, with the maximum benefit of $1500 going to those earning between $48,000 and $90,000 in 2021-22.
3. Superannuation Increase: The superannuation guarantee, which is the portion of wages employers must contribute to their employees' retirement savings, will increase from 10.5% to11% from July 1. This increase will continue by 0.5% each year on July 1 until it reaches 12% in 2025. Additionally, the temporary reduction on minimum super drawdown rates for retirees will end. This measure, introduced during theCOVID-19 pandemic, allowed retirees to withdraw only 50% of age-based minimums if they chose to do so.
4. Revised Method for Calculating Working from Home Expenses: The fixed rate method for calculating deductions for working from home expenses has been revised. From July 1, the fixed rate method will be67 cents per work hour, up from the previous rate of 52 cents per hour. The actual cost method, requiring detailed record-keeping of private and work-related expenses, remains an alternative option.
5. Expanded Eligibility for First Home Owner Schemes: The federal government's Home Guarantee Scheme, including theFirst Home Guarantee, Regional First Home Guarantee, and Family Home Guarantee, will have expanded eligibility criteria. Starting July 1, friends, siblings, and other family members can jointly apply for the First Home Guarantee andRegional First Home Guarantee. These schemes will also be available to non-first home buyers who have not owned a property in the past 10 years.
6. Enhanced Child Care Subsidy: Families earning less than $530,000 will be eligible for an increased childcare subsidy from July 10. Higher subsidy rates will apply to families with one child in care earning less than $530,000 in household income, with even higher rates for second and additional children in care. The subsidy increase will also extend to outside school hours care.
7. Extended Paid Parental Leave: New parents can now claim up to 20 weeks of paid parental leave, and partnered couples have the option to split the leave between them. For single parents at the time of their claim, the full 20 weeks of paid parental leave is accessible. The current arrangement offers parents 18 weeks of paid parental leave and two weeks of secondary carer leave, both paid at the minimum wage.
8. Age Pension Eligibility Age Increased: As of July 1, the age at which Australians can become eligible for the age pension will increase to 67 years, up from the current age of 66 years and six months.However, you can submit your claim in the 13 weeks leading up to your AgePension age.
9. TSMIT (Temporary Skilled Migration Income Threshold) Increase: From July 1, the TSMIT will rise from $53,900 to$70,000. The TSMIT represents the minimum salary that must be paid to a sponsored employee to obtain a temporary skilled visa in Australia.

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As the new financial year unfolds, it's essential to stay informed about these changes to effectively plan and manage your financial affairs moving forward. At Attune Advisory, we are here to support and guide you through these updates with tailored advice specifically for your circumstances. If you have any questions or would like help with tax planning, superannuation, or other financial matters, reach out to the team on 1300 866113 or send us an email.We are dedicated to helping you navigate these changes and achieve your financial goals.

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‍Understanding the intricacies of taxation can be a daunting task, especially when it comes to the Small Business Capital Gains Tax(CGT) Concessions. These concessions can have a significant impact on the tax outcome of your business or the sale of a CGT business asset.

Thankfully, there’s not too many variables to wade through, as Australia offers four types of CGT concessions. Having said that, determining which one applies to your specific situation can be a complex process that mean it’s worthwhile enlisting the help of the Attune team so you can ensure you take the right path.

To help you start the process, let's take a closer look at the four CGT concessions available:

1. 15-year Exemption: If you're 55 years or older and either retiring or permanently incapacitated, the 15-year exemption may provide total relief from CGT when you sell a business asset. To qualify for this exemption, you must have owned the asset for at least 15 years, with at least 7.5 of those years being classified as an active asset. This concession allows you to disregard the entire capital gain from the sale.
2. 50% Active Asset Reduction: The 50%active asset reduction concession offers a 50% reduction of the capital gain made on the sale of an active asset. An active asset refers to an asset that is used or held ready for use while running your business. This concession is often combined with other concessions to achieve greater CGT relief.
3. ‍Retirement Exemption: The retirement exemption provides relief up to a lifetime limit of $500,000. If you're under55, the exempted amount must be paid into a complying superannuation fund or aRetirement Savings Account (RSA). However, if you're 55 years or older, there is no requirement to contribute to a complying superannuation fund or RSA.
4. Rollover Concession: The rollover concession allows you to defer your CGT liability when you sell an active asset and buy a replacement active asset within two years before or one year after the original CGT event. The CGT liability is deferred until the replacement asset is sold.

‍Two of the most frequently asked questions about SmallBusiness CGT Concessions:

1. Can I use more than one CGT concession? Yes, certain concessions can be applied in conjunction with others, depending on your specific circumstances.
2. Can these concessions apply to a pre-CGT asset? No, the CGT concessions only apply to CGT events, and pre-CGT assets are excluded from CGT events.

Remember, the complex world of Small Business Capital Gains Tax doesn't have to be overwhelming. With the right assistance, you can navigate it successfully, protecting your financial interests while ensuring full compliance with the Australian Tax Office requirements. Your focus should be on growing your business, and ours is to support you in doing so.

So what’s my next move?

Understanding these CGT concessions – even at the top level– and their applicability is crucial for effective tax planning strategies, so we suggest at least re-reading the above to get you across them to start with.But remember, at Attune Advisory, we're here to guide you through this process from start to finish – our expert team can provide you with personalised advice tailored to your unique situation, ensuring you maximise the benefits from theCGT concessions available to you.

You can book an appointment to discuss your current situation and how we can help you reach your goals via email or call us at1300 866 113.