We’re wrapping up another big year in tax and super. I’m here to celebrate the big moments of 2024 and the wonderful contributions from employers who are doing the right thing. I’ve included plenty of helpful points to help you continue kicking goals into 2025.
A super year guaranteed
On 1 July this year, the super guarantee (SG) rate increased from 11% to 11.5%. Based on our 2022-23 data, we know that a massive 94% of workers’ SG was paid on time, in full, and to the right super fund. Great work! Don’t forget, there’s one further increase to 12% from 1 July 2025.
If you’re still unsure about SG, follow these simple steps:
- Check your worker is eligible for SG payments.
- Check their super fund details are correct.
- Check you’re paying the right amount of super.
- Check you’re paying SG contributions on time.
- Check you know what to do if you miss or make a late payment.
Want to know more? Visit ato.gov.au/superforemployers or ato.gov.au/superquickcheck
Fringe benefits tax
If you currently offer fringe benefits to your staff, you’ll know how important it is to keep accurate records. Earlier this year from 1 April 2024 (the FBT year ending 31 March 2025), you now have the choice to use existing records for certain fringe benefits. Previously, these records had to be kept in an approved form such as travel diaries, employee declarations and logbooks. This alternative record keeping option allows you to use your corporate records. For example, you can rely on a detailed work calendar for your record keeping instead of using a travel diary to record an employee’s travel movements. Check out the ATO website to see if you’re eligible to use this method at ato.gov.au/FBTrecordkeeping
For employers who provide use of electric vehicles, it’s important to know that from 1 April 2025, a plug-in hybrid electric vehicle will not be considered a zero or low emissions vehicle under FBT law.
However, you can continue to apply the exemption if both the following requirements are met:
- Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025.
- You have a financially binding commitment to continue providing private use of the vehicle on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding.
You can learn more ato.gov.au/fbtphev
Acing STP reporting
Our 2023-24 intel tells us that 96% of employers are reporting payroll information through Single Touch Payroll (STP). Reporting your tax and super information through STP is mandatory and it not only reduces the administrative burden, it’s also valuable data for us at the ATO. We can provide help and support to employers who are getting off track.
Did you know over 90% of employers finalised their STP reporting on time this year?
Let’s recap pay as you go withholding
As you probably already know, when you pay your staff, you need to withhold part of that amount for tax. This is known as pay as you go (PAYG) withholding. You can use our tax tables or online tax withheld calculator to work out how much tax you need to withhold. By withholding the right amount, you’re meeting your obligations and helping your workers to meet their end-of-year tax liabilities. Check out ato.gov.au/taxtables
Support for small business employers
We launched a flexible and free online learning hub this year for small businesses, educators, and tax professionals that can be shared with and used by your staff too.
Our Essentials to strengthen your small business courses are designed to help build your confidence in financial and business literacy so you can nail your tax and super obligations. To find out more, tour our site at smallbusiness.taxsuperandyou.gov.au
Key points for new employers
If you’re going to hire staff for the first time over the holiday break or in the new year, here’s some helpful information you can save to set some good habits and get you ready for your employer journey:
- If you haven’t already, you need to register for PAYG withholding and have your new worker complete a tax file number (TFN) declaration.
- Withhold the right amount of tax from their pay.
- Find out their nominated super fund or provide a default fund.
- If they’re eligible, pay SG contributions in full, on time and to the right fund.
- If you’ll be providing fringe benefits, you need to register for FBT.
- Remember to report tax and super through single touch payroll (STP) on or before the first payday for your new staff.
I encourage you to check out ato.gov.au/employers for further guidance.
What’s on the horizon for employers
You may have seen the recent Government announcement that from 1 July 2026, employers will need to pay their staff SG payments on payday. Currently employers pay their staff SG to funds at least quarterly. The Payday Super changes will mean super needs to be paid more frequently, at the same time as salary and wages. You can read more about this upcoming change at ato.gov.au/paydaysuper
Thanks again for all the work you’ve put in to meet your obligations this year. I wish all business owners a safe and happy holiday season.
Peta Lonergan is the Assistant Commissioner for Superannuation and Employer Obligations at the ATO. She is focused on supporting and educating employers to help them comply with their tax and super obligations.