{"id":4602,"date":"2025-06-18T14:01:23","date_gmt":"2025-06-18T04:01:23","guid":{"rendered":"https:\/\/ecovisclarkjacobs.com.au\/?p=4602"},"modified":"2025-06-19T15:43:56","modified_gmt":"2025-06-19T05:43:56","slug":"managing-payroll-and-ato-changes-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/ecovisclarkjacobs.com.au\/de\/managing-payroll-and-ato-changes-what-you-need-to-know\/","title":{"rendered":"Managing Payroll and ATO changes \u2013 what you need to know!"},"content":{"rendered":"<p><span style=\"color: #808080;\">As we approach the new financial year on July 1st, it&#8217;s important to stay updated on the latest changes that could impact your dental practice.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #808080;\">This year brings several updates from the Australian Taxation Office (ATO) and adjustments to payroll and employee conditions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #808080;\">Here&#8217;s a summary to help you plan and prepare. For specific advice, please consult your bookkeeper or accountant.<\/span><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><span style=\"color: #800000;\"><strong>ATO\u2019S Firmer Approach<\/strong><\/span><\/p>\n<p><span style=\"color: #808080;\">The ATO Commissioner has announced stricter measures to recover debts from businesses with late lodgements, unpaid taxes, and unpaid superannuation.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #808080;\">The recent budget has allocated extra funding to the ATO to enforce compliance more rigorously.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #800000;\"><strong>What to Expect:<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #808080;\">Increased reminders via SMS, myID, letter and phone<\/span><\/li>\n<li><span style=\"color: #808080;\">Tougher stance on granting interest and penalty remissions<\/span><\/li>\n<li><span style=\"color: #808080;\">For persistent non-compliance, that ATO may:<\/span>\n<ul>\n<li><span style=\"color: #808080;\">Issue more Director Penalty Notices for companies<\/span><\/li>\n<li><span style=\"color: #808080;\">Disclose debt to credit reporting agencies<\/span><\/li>\n<li><span style=\"color: #808080;\">Move GST reporting from Quarterly to Monthly<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"color: #800000;\"><strong>Impact:<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #808080;\">Efficiently managed practices might find the increased reminders annoying, especially if they arrive before a lodgement or payment is due.<\/span><\/li>\n<li><span style=\"color: #808080;\">Ignoring ATO warnings could lead to quicker enforcement actions.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #800000;\"><strong>Recommended Actions:<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #808080;\">Ensure you have efficient procedures in place for managing lodgements.<\/span><\/li>\n<li><span style=\"color: #808080;\">Authorize your bookkeeper or accountant to respond to any ATO queries on your behalf.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><span style=\"color: #800000;\"><strong>ATO Interest no longer tax-deductible<\/strong><\/span><\/p>\n<p><span style=\"color: #808080;\">Starting July 1st, interest charged by the ATO on late payments of BAS or income tax, as well as on payment plans, will no longer be tax-deductible. This change is expected to proceed despite the legislation not yet being passed at the time of writing.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #808080;\">Interest on other types of business credit and loans will remain tax-deductible.<\/span><\/p>\n<p><span style=\"color: #800000;\"><strong>Impact<\/strong>:<\/span><\/p>\n<ul>\n<li><span style=\"color: #808080;\">Delaying ATO payments will become more expensive.<\/span><\/li>\n<li><span style=\"color: #808080;\">ATO interest will effectively become a non-deductible penalty<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000000;\"><strong>Recommended Actions: <\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #808080;\">Ensure you meet ATO deadlines with the help of your bookkeeper.<\/span><\/li>\n<li><span style=\"color: #808080;\">Review and consider paying off tax debts, including payment plans, before July 1st.<\/span><\/li>\n<li><span style=\"color: #808080;\">If full payment isn&#8217;t possible, explore cheaper financing options<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #800000;\"><strong>Superannuation Increase<\/strong><\/span><\/p>\n<p><span style=\"color: #808080;\">Superannuation Contribution Guarantee (SCG) will increase from 11.5% this year, to 12% from 1 July 2025.\u00a0 This is the last scheduled percentage increase for superannuation.<\/span><\/p>\n<p><span style=\"color: #808080;\">Remember, the increase in Superannuation is based on <strong>date paid<\/strong>, not the pay period and irrespective of when the pay was earned.<\/span><\/p>\n<p><span style=\"color: #808080;\">Example<strong>:<\/strong> If a pay period crosses June and July, use the new 12% rate for the whole pay if the payment is processed on or after July 1<sup>st <\/sup>.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #800000;\"><strong>Superannuation Before-Tax Contributions Tax cap unchanged<\/strong><\/span><\/p>\n<p><span style=\"color: #808080;\">The annual superannuation contributions cap (the maximum of before-tax contributions allowed before being subject to extra tax) remains at $30,000 and will not change from the 2025 financial year.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><span style=\"color: #800000;\"><strong>Award Increases<\/strong><\/span><\/p>\n<p><span style=\"color: #808080;\">Award increases are usually set from 1<sup>st<\/sup> July each year.<\/span><\/p>\n<p><span style=\"color: #808080;\">New wage rates apply from the <strong>first full pay period<\/strong> after the increase.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #808080;\">Example: For 1 July increases, a pay period from June 22nd to July 7th will use the old rate, while the period from July 8th to July 21st will use the new, higher rate.<\/span><\/p>\n<p>&nbsp;<\/p>\n<table width=\"642\">\n<tbody>\n<tr>\n<td width=\"642\"><span style=\"color: #800000;\"><strong>\u00a0<\/strong><\/span><\/p>\n<p><span style=\"color: #800000;\"><strong>Example:<\/strong><\/span><\/p>\n<p><span style=\"color: #808080;\">A pay period runs from Sunday 22nd June to Saturday 7th July and will be paid on Monday 9<sup>th<\/sup> July.<\/span><\/p>\n<p><span style=\"color: #808080;\"><strong>Employees\u2019 Hourly Rate<\/strong>: Use the old rate for all hours paid because only part of this payrun is for the new year<\/span><\/p>\n<p><span style=\"color: #808080;\"><strong>Superannuation<\/strong>: Use new rate of 12% as the payment date is after 30 June<\/span><\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #800000;\"><strong>Recommended Actions:<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #808080;\">Pay all backpay and penalty claims by June 30th to minimize costs.<\/span><\/li>\n<li><span style=\"color: #808080;\">No need to split pay runs between old and new rates for superannuation and wages<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #800000;\"><strong>Superannuation on Paid Parental Leave<\/strong><\/span><\/p>\n<p><span style=\"color: #808080;\">From July 1st, 2025, eligible parents with babies born or adopted on or after this date will receive an additional 12% superannuation payment from the government. This will be paid directly to their superannuation fund after the financial year ends.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #808080;\"><strong>Recommended Actions:<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"color: #808080;\">No action required from employers.<\/span><\/li>\n<li><span style=\"color: #808080;\">Inform employees that this payment will be made directly by the government to their superannuation fund.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #808080;\">We hope this helps you stay on top of the upcoming changes. Reach out to your bookkeeper or accountant if you need any further assistance.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #800000; font-size: 14pt;\"><strong>Author<\/strong><\/span><\/p>\n<p><span style=\"color: #808080;\">Joanne Crumpton<\/span><\/p>\n<p><span style=\"color: #808080;\">Principal Consultant \u2013 ECJ Online<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>As we approach the new financial year on July 1st, it&#8217;s important to stay updated on the latest changes that could impact your dental practice. &nbsp; This year brings several updates from the Australian Taxation Office (ATO) and adjustments to payroll and employee conditions. &nbsp; Here&#8217;s a summary to help you plan and prepare. For [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":4609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Managing Payroll and ATO changes \u2013 what you need to know!","_seopress_titles_desc":"As we approach the new financial year on July 1st, it's important to stay updated on the latest changes that could impact your dental practice.","_seopress_robots_index":"","_seopress_analysis_target_kw":"Managing Payroll and ATO changes \u2013 what you need to know!","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[21],"tags":[],"class_list":["post-4602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/posts\/4602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/comments?post=4602"}],"version-history":[{"count":3,"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/posts\/4602\/revisions"}],"predecessor-version":[{"id":4612,"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/posts\/4602\/revisions\/4612"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/media\/4609"}],"wp:attachment":[{"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/media?parent=4602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/categories?post=4602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecovisclarkjacobs.com.au\/de\/wp-json\/wp\/v2\/tags?post=4602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}