Just when you think you’re across all the requirements of small business payroll, super and director requirements, new changes are announced! Fear not because your trusty bookkeeper (me) is here to spill the bookkeeping tea.
Currently, superannuation is only paid for employees who make more than $450 per week. From 1st July 2022, this is changing! The federal government has removed this threshold and you’ll now need to pay superannuation for all employees over the age of 18 regardless of the income they make.
For small businesses, this change will mean you’ll need to allocate superannuation in your budget accordingly.
Along with this update, the superannuation guarantee will increase to 10.5% as of 1st June 2022. Again, this will mean an increase for you and should be calculated on your employees’ eligible earnings.
And lastly, superannuation is payable for employees under 18 years of age but only if they work 30 hours or more per week regardless of how much they earn.
Action point: Meet with your bookkeeper to discuss these changes if you need. Ensure your business is compliant because any deviation from the federal legislation can result in hefty fines. Super is serious business, folks!
The Superannuation Guarantee is legislated to increase by 0.5% each year until it reaches 12% in 2025.
Director Identification Number
If you are a company, or you’ve recently changed your business structure from sole trader to a company, or you’re planning to, this information is important so keep reading!
In response to some shady activity, the Australian Government has enforced new legislation to identify and track company directors. This is good news because it also protects you, the director, from identity theft and other cyber threats.
Now, all directors will need a Director Identification Number (also known as a DIN) which is a unique 15-digit identifier given to a director which will stay the same always – it’s your personal number that will never change. So individuals who are directors of multiple companies will use the same DIN.
Dates to note
If you’re all over it, you may already have your DIN ready to go however if you haven’t yet here are the due date to apply for your DIN differs.
- If you are appointed as a director on or before 31st October 2021, you’ll need to apply for your DIN by 30th November 2022.
- If you have been appointed as a director between 1st November 2021 and 4th April 2022, your DIN application was due within 28 days of your appointment.
- If you have been appointed as a director from 5th April 2022, you’ll need a DIN prior to your official appointment.
Action Point: You can apply for your DIN via the Australian Business Register Services website. You’ll need your TFN, GovID, Identity Documents and Residential Address handy. If you’re unsure, chat with your bookkeeper or accountant to clarify.
All Company Directors will need a Director Identification Number.
Where can I find more information?
For more details on your super obligations as an employer, visit the ATO website. Your bookkeeper or accountant will also be able to give you specific information about your business.
If you haven’t got a bookkeeper on board and you’re on the hunt for a good one, I know just the lady for you…ME! Book a call and let’s find the perfect support package for your business.