What needs to be done before 30 June 2021?

Superannuation Contributions

If you would like to claim a deduction in the 2021 financial year, make sure payment is made to Industry Superannuation Funds by 22 June 2021 to allow them to accept the contributions.

Contribution Caps: 30 June 2021 30 June 2022
Concessional (Deductible) $25,000 $27,500
Non-Concessional $100,000 $110,000

 

Temporary Full Expensing

As announced in the 2020 Federal Budget, eligible businesses with aggregated turnover of less than $5 billion can deduct the business portion of the cost of eligible new depreciating assets that are first held and installed ready for taxable use from 6 October 2020 to 30 June 2022.

 

Changes from 1 July 2021

Superannuation Guarantee Charge – 10%

From 1 July 2021 the superannuation guarantee charge (SGC) rate will increase from 9.5% to 10%,

 Tax Rates

Resident Individual income tax rates have remained the same for the 2021-2022 financial year:

Taxable Income: Tax on this income
0 - $18,200 Nil
$18,201 - $45,000 19 cents for each $1 over $18,200
$45,001 - $120,000 $5,092 plus 32.5 cents for each $ over $54,000
$120,001 - $180,000 $29,467 plus 37 cents for each $1 over $120,000
$180,001 and over $51,667 plus 45 cents for each $1 over $180,000

 

For most business companies (base-rate entities*), the rate of 26% for the 2021 income year is reducing to 25% for the 2022 income year. For the remainder of companies, the general company tax rate of 30% remains.

  2020-2021 2021-2022
General 30% 30%
Base-Rate 26% 25%

*A company will be a Base-Rate entity if it meets the aggregated turnover test of less than $50m and no more than 80% of its assessable income for the income year is passive income.

Minimum Pension Drawdowns extended for 12 months

The 50% reduction in the minimum pension drawdowns from superannuation accounts has been extended for a further 12 months to 30 June 2022

Age Ordinary 50% Reduction
Under 65 4% 2%
65-74 5% 2.5%
75-79 6% 3%
80-84 7% 3.5%
85-89 9% 4.5%
90-94 11% 5.5%
95 or more 14% 7%

 

STP Reporting

Employers should be reporting through Single Touch Payroll (STP) unless they only have closely held payees, or are covered by a deferral or exemption.

From 1 July 2021, employers with closely held payees must report through STP. You can choose to report these payees each pay, monthly or quarterly.

 

Times have changed significantly this year. We hope all of our clients have managed well during these tough times and please remember that we are only a phone call or email away if you have any questions. We look forward to another successful association in this next financial year.

July Lodgement & Payment Due Dates

Detail Due
STP Finalisation 14 July
Monthly Activity Statement 21 July
Quarterly Activity Statement 28 July

 

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