End of Financial Year 2023
Key dates for Small Business

DUE 22 June 2023

Superannuation is money a business pays to its employees’ nominated superfund to provide for their retirement.

As part of AAG Tax Planning Strategies, we encourage the business owner to pay Superannuation Guarantee (SG) by 22 June 2023 to obtain a tax deduction in this financial year.
(Even though it is not due until 28 July 2023, the 22 June date allows enough time for the super clearinghouse to process the payment before the end of this financial year).

To qualify for a tax deduction, your SG contribution payments must be made each quarter to your employees’ nominated super funds by the quarterly due dates for SG contributions.

DUE 22 June 2023

Superannuation contributions have a cap on the amount that can be a tax deduction for each employee in a financial year. For the 2022/2023 year, the limit is $27,500 for all ages.

If you want to make additional superannuation contributions up to your cap of $27,500, please ensure to do it by 22 June 2023 to arrive in the fund before 30 June.

Tax-Deductible Contributions to the superfund will be taxed at 15%, while your individual tax rate can go up to 47%, meaning a maximum tax savings of 32% for contributions.

(FBT) Reporting, Lodging and Paying DUE 21 May 2023 to 25 June 2023
(see specific dates below)

A fringe benefit is a ‘payment’ to an employee, but in a different form to salary or wages, like allowing an employee to use a work car for private purposes, paying an employee’s gym membership, providing entertainment by way of free tickets to concerts, reimbursing an expense incurred by an employee, such as school fees, etc.

Employers must lodge a fringe benefits tax (FBT) return if they have a liability – also known as a fringe benefits taxable amount – for an FBT year (1 April to 31 March).

If you prepare your own FBT return:

For the FBT year ended 31 March 2023, you can lodge up to 28 May 2023 without incurring a failure to lodge (FTL) penalty. The payment due date is 21 May 2023.

If you have a tax agent that lodges your return electronically, the due date to lodge and pay is 25 June 2023.

To clarify the changes to Fringe Benefits Tax for 2023, click here.

DUE 30 June 2023

• Review Accounts Receivables Ledger (Debtors) and write-off any bad debts
• Review Stock on Hand and write off obsolete stock
• Review Work in Progress
• Bring forward tax-deductible purchases such as repairs, accounting software, office expenses and donations.
• Pay director’s fees or dividends and staff bonuses
• Defer Invoicing and receiving income
• Prepay expenses for up to 12 months, e.g. interest, insurance, rent, subscriptions and business travel
• Structure the Timing of Capital Gains and/or Losses
• Review your Division 7A Loans
• Review Personal Tax Deductions

Reporting DUE 14 July 2023

Single Touch Payroll (STP) is an initiative by the ATO that changes the way employers report on employee payments, including salary and wages, PAYG withholding and superannuation.

From 1 July 2021, amounts paid to closely held payees must be reported through STP. If you’re a small employer, you can report these amounts on or before each payday, or you can choose to report this information quarterly.

If you have any other payees (also known as arm’s length employees), they must be reported on or before each payday.

Click here for more details or contact us for assistance.

Finalisation of STP Reporting for 2023 Financial Year DUE 14 July 2023

Under STP, employers will send payroll information to the ATO simultaneously as they pay their employees, typically weekly, fortnightly or monthly, via their payroll software.

You will need to finalise your STP information and make a finalisation declaration to the ATO at the end of the financial year. This tells ATO that your data is complete, and ATO will change your employees’ income statement to ‘Tax ready’.

You can make a finalisation declaration for an employee during the financial year (for example, for employees who have ceased employment) or after the end of the financial year up to 14 July.

Both June Payroll Tax and Annual Reconciliation are DUE 21 July 2023

Payroll tax is a state or territory tax that you have to pay when your total Australian wages are over the tax-free threshold for the relevant state or territory.
(Western Australia’s threshold is $1,000,000 pa)

If you are required to report monthly or quarterly payroll tax, you will be required to do two reports by 21 July:

• June quarter / monthly return; and
• Annual reconciliation returns

Click here to work out if you need to lodge Payroll Tax Return and here for more details.

Super Guarantee Obligation (if not paid before June 30) DUE 28 July 2023

Pay Superannuation Guarantee (SG) for the quarter ended 30 June 2023 by 28 July 2023
(if you didn’t pay before 30 June to get a tax deduction in the 2022/2023 year)

Taxable Payments Annual Report (TPAR) DUE 28 August 2023

From 1 July 2019, businesses in the Building and Construction, Cleaning, Courier, Security Industries or IT Services who have paid for contractors throughout the year must lodge a Taxable Payments Annual Report (TPAR).

Your TPAR will be due for lodgement by 28 August 2023 and will report all contractors’ payments made during the 2023 Financial Year (1 July 2022 to 30 June 2023).

Click here to work out if you need to lodge a TPAR.

If your business falls under an industry that needs to report to the ATO and you think you require assistance to review contractors’ payments and/or lodging the TPAR, please get in touch.