A Guide for Small Businesses

Tax time can be a challenging period for small businesses, but with the right tools and information, you can ensure a smooth and efficient process. The Australian Taxation Office (ATO) offers a range of resources to help you manage your tax and superannuation obligations. In this guide, we’ll cover essential information and updates for small businesses during tax season.

Small Business Tax Time Toolkit

The ATO provides a Tax Time Toolkit designed specifically for small businesses. This toolkit includes fact sheets covering various aspects of business expenses and operations, such as home-based business expenses, motor vehicle expenses, travel expenses, deductions for digital expenses, and guidance on pausing or closing your business.

Superannuation Guarantee Rate

As of July 1, 2022, the superannuation guarantee (SG) rate has increased from 10% to 10.5%. It’s crucial to update your payroll and accounting systems to ensure you’re contributing the correct amount of super for your employees and avoid penalties.

Additionally, removing the $450 per month threshold for SG eligibility means more employees are now eligible. Employers only need to pay super for workers under 18 when they work more than 30 hours in a week.

Single Touch Payroll (STP)

STP simplifies the reporting of employees’ payroll information by submitting it to the ATO each time you pay them through STP-enabled software. Ensure you start reporting through STP if you haven’t already. The end-of-year finalisation declaration is typically due by July 14 each year, and employees can access their income statements through ATO online services or by contacting their registered tax agent.

Government Grants, Payments, and Stimulus during COVID-19

If your business received government grants or payments in response to COVID-19 or natural disasters, it’s important to include them in your assessable income. For instance, reporting JobKeeper payments when completing your tax return is essential.

Tax Incentives and Measures

– JobMaker Hiring Credit: Payments under the JobMaker Hiring Credit scheme are assessable as ordinary income. Normal deductions apply for amounts subsidized by JobMaker Hiring Credits.

– Temporary Full Expensing: Eligible businesses can deduct the business portion of the cost of eligible depreciating assets. The temporary full expensing measure is applicable for assets held or used between October 6, 2020, and June 30, 2023.

– Loss Carry Back: Eligible corporate entities can claim a refundable tax offset if they experience a tax loss in specific income years. This is intended to interact with temporary full expensing, encouraging new investment.

Lodgment Penalty Amnesty Program

The government has introduced a lodgment penalty amnesty program for small businesses. To be eligible, businesses must have had an annual turnover of less than $10 million, overdue returns between December 1, 2019, and February 28, 2022, and lodge those overdue forms between June 1 and December 31, 2023.

Learning Resources and Support

The ATO provides various learning resources to help you run your business effectively. These include podcasts, videos, webinars, and information on topics such as assessable income, business tax deductions, and record-keeping.

Tools and Services

Take advantage of ATO’s calculators and tools to manage your business efficiently. These tools cover areas like loss carryback, record-keeping evaluation, super guarantee eligibility, and more.

Online Services

Explore online services like the ATO app, myGovID, and Online services for businesses to streamline tax and super management. These services offer a range of functionalities, from applying for an ABN to lodging tax returns and managing accounts.

Help to Lodge and Pay

It’s crucial to lodge and pay on time for certainty in your tax and superposition. If financial difficulties arise, contact the ATO before the due date to discuss available support options.

Dealing with Disasters

For businesses affected by natural disasters, the ATO assists, including extra time to pay taxes, re-issuing documents, and setting up tailored payment plans.

Additional Support and Services

Explore additional resources like the Small Business Newsroom, ATO Community forum, and contact details for support. Registered tax or BAS agents can also assist in managing tax and super obligations.

As you navigate tax time, staying informed and utilizing available tools and services will contribute to a successful and stress-free process for your small business.

For more detailed information and to access the mentioned tools, visit the [ATO website](https://www.ato.gov.au/).