The ATO wants to make it as easy as possible for you to get your tax and super right. Here are some tips to help you with your 2023-24 tax return.
Key changes this tax time
There are a few changes to be aware of this tax time. If you purchased or upgraded a business asset in 2023–24, you may be eligible for:
- the $20,000 instant asset write-off. Small businesses, with an aggregated turnover of less than $10 million, can immediately deduct the full cost of eligible assets costing less than $20,000 that were first used or installed ready for use between 1 July 2023 and 30 June 2024.
- a 20% bonus deduction under the small business energy incentive for the same assets in the 2023–24 income year. The incentive applies to the cost of eligible assets and improvements to existing assets which improve energy efficiency, up to a maximum amount of $100,000, with the maximum bonus deduction being $20,000 per business.
For more information on eligibility and what records you need to keep, visit ato.gov.au/instantassetwriteoff, ato.gov.au/energyincentive
From 1 July the super guarantee (SG) rate increased to 11.5%. Make sure the payments you make for eligible workers on or after 1 July reflect the new rate. However, for the quarter ending 30 June 2024, the 11% SG rate applied to payments you made before 1 July.
For more information, visit ato.gov.au/superforemployers
Finalise your Single Touch Payroll (STP) data
The due date for finalising employees’ STP data has passed. If you have any closely held payees, you have a later finalisation due date for these payees only.
Make sure you submit a finalisation declaration for all employees you’ve paid and reported through STP during the financial year. This includes employees you haven’t paid in a while (such as casuals and terminated employees).
Meeting your STP reporting obligations ensures your employees’ individual income tax returns are pre-filled with complete information.
For more information, visit ato.gov.au/stpfinalisation
Stay on top of your FBT obligations
If you provide benefits to staff other than salary or wages, fringe benefits tax (FBT) may apply. The FBT year runs from 1 April to 31 March. The due date to lodge your FBT return and pay any FBT owed has now passed. If you still need to lodge and pay FBT, this is overdue and you should lodge as soon as possible to avoid further penalties.
To make sure you get your FBT right, follow these 4 simple steps:
- Identify the types of fringe benefits provided. For example, cars and car parking, loan and debt waivers, accommodation, and entertainment related benefits.
- Determine the taxable value. Make sure you use approved valuation methods to work out if you have an FBT liability. There are different valuation methods and exemptions or concessions depending on type of fringe benefit.
- Lodge an FBT return. If you have an FBT liability, you’ll need to lodge your return and pay any FBT you owe by the due date, unless your tax agent lodges electronically for you. If the value of reportable fringe benefits for any employee is more than $2,000, you’ll need to include the grossed up value through Single Touch Payroll (STP) or on that employee’s payment summary. Any contributions your employees make toward the cost of a fringe benefit must be included on your tax return as assessable income.
- Keep records to demonstrate your calculations and support your FBT position.
For more information, visit ato.gov.au/fbt
Review your pay as you go (PAYG) instalments
If you think your PAYG instalments could result in you paying too little or too much tax for the year, you can vary your instalments. You can make your variation when you lodge your business activity statement or instalment notice, through Online services for business or your registered tax or BAS agent.
You must lodge your variation on or before the day your PAYG instalment is due, and before you lodge your tax return for the year.
Remember to review your variations each reporting period. If you underestimate, you could be left with a tax bill when you lodge at the end of the year and, in some cases, face interest charges or penalties.
For more information, visit ato.gov.au/paygi
Keep things super with your employees
If you employ staff, you must pay the super guarantee (SG) for each of your eligible employees, including any contractors hired mainly for labour. SG is a mandatory payment employers must make to a complying super fund or retirement savings account. You need to make sure you pay in full, on time and to the right fund.
Pay and report your SG electronically at least four times a year by the 28th of January, April, July and October. The super contributions you make for your employees are only considered ‘paid’ when the super fund receives them.
As mentioned above – from 1 July the SG rate increased to 11.5%. Be sure you’re applying the correct rate for payments you make for eligible workers.
If you do miss the due date, even by a day, lodge a super guarantee charge (SGC) statement and pay the SGC to the ATO. Remember:
- it’s calculated using your employee’s salary and wages, not their ordinary time earnings (OTE)
- it costs more than the super you would have paid
- you won’t be able to claim it as a tax deduction.
For more information, visit ato.gov.au/superforemployers
Claiming deductions
You can claim a deduction for most expenses you incur carrying on your business, as long as they are directly related to earning your assessable income.
Remember the 3 golden rules so you only claim what you’re entitled to:
- The expense must have been for your business not for private use.
- If the expense is for a mix of business and private use, you can only claim the portion that is used for your business.
- You must have records to prove it.
For more information, visit ato.gov.au/businessdeductions or take a free, self-paced course on claiming deductions, visit smallbusiness.taxsuperandyou.gov.au
Record keeping and digital services
A good record keeping system will help you manage your tax and super obligations. This will make it easier to report and lodge on time with us. You can use our record keeping evaluation tool at ato.gov.au/recordkeepingevaluation to help you check how well you’re keeping your business records so you can make improvements in the future and make next tax time even easier.
You can also check out Essentials to strengthen your small business – Record keeping for a self-paced course on good record keeping. Visit smallbusiness.taxsuperandyou.gov.au.
The right digital tools can also help you perform daily activities easily and securely, making it easier to work with us when it’s convenient. Make sure you’ve set up myGovID and Relationship Authorisation Manager (RAM) to access our online services, including Online services for business which allows you to manage your business reporting and transactions in one place.
If you’re switching to a new registered agent, or changing the authorisations you give your existing registered agent, you’ll need to nominate them in Online services for business before they can access your account and act on your behalf. This agent nomination process currently applies to all types of entities with an ABN excluding sole traders.
For more information, visit ato.gov.au/onlineservices
Support and resources
We have a range of tools and services on our website to make it easier for you to get your tax and super right.
Each year, we update the Tax Time toolkit for small business. The Toolkit has a directory of links to useful information, tools, calculators, learning resources and other support and services.
The Toolkit also includes factsheets on expenses for home-based business, motor vehicle, travel, and digital products. There are also factsheets about pausing or closing your business and using business money and assets.
If you want to build on your tax and super knowledge, you can take free, self-paced courses using Essentials to strengthen your small business. All the resources are free, easy to use and designed for all stages of your business.
The Cash Flow Coaching Kit is another resource that can help you better manage your cash flow across the financial year.
You can also subscribe to our popular Small business newsletter to keep up with all the latest tax and super information that could affect your business. When you do, you’ll get sent a newsletter with the latest tax and super updates each month directly to your inbox.
For more information, visit ato.gov.au/sbtaxtimetoolkit, smallbusiness.taxsuperandyou.gov.au, smallbusiness.taxsuperandyou.gov.au/cash-flow-kit and ato.gov.au/sbwhatsnew
About the author
Emma Tobias is an Assistant Commissioner for the Australian Taxation Office in the Small Business line. Her focus is to help support small businesses by leading and influencing their experience across the tax, super and registry systems. As part of her role, Emma collaborates with small businesses, industry partners and government agencies to drive an improved small business experience and digital services. Her team also helps small businesses manage cash-flow and digital readiness, assisting them as they look to recover and get back on track after the challenges of the last few years.