Keeping a vehicle log book
When claiming work-related car expenses, many people miss maximising their claim due to poor record keeping. If you are audited by the Australian Tax Office (ATO), inadequate records could cost you dearly.
Read moreWhen claiming work-related car expenses, many people miss maximising their claim due to poor record keeping. If you are audited by the Australian Tax Office (ATO), inadequate records could cost you dearly.
Read moreAs an employer, you are required by law to make superannuation guarantee (SG) contributions on behalf of your employees, at least quarterly. We know it’s easy to overlook obligations like these amidst the daily whirlwind of running a business, however, negligence with super guarantee payments can lead to severe consequences.
Failing to meet your SG obligations isn’t just a matter of procrastination – it’s breaking the law!
If you have not paid SG contributions to an employee’s super fund in full, on time and to the right fund, you need to lodge a statement to the ATO and pay a Super Guarantee Charge (SGC).
The SGC comprises three components:
1. The SG shortfall amount:
This occurs when employers fail to pay the full SG contribution or don’t adhere to their choice of fund obligations. Note: the SG shortfall is calculated based on employees’ full salary and wage amounts, not just their Ordinary Time Earnings (OTE).
2. Interest on the shortfall amount:
Currently a hefty 10%, nominal interest is calculated from the first day of the quarter that the SG was not paid until the ‘lodgment day’. Note: Once you become liable to pay the SGC, this accrues at least until the due date.
3. Administration Fee:
Currently $20 per employee, per quarter.
Employers who fail to lodge their SGC statement and pay the SGC by the due date face additional penalties on top of the SGC. These are quite aggressive and can escalate quickly. Two common and painful penalties are:
1. Failure to provide a SGC statement:
Late submission or failure to provide requested information during an audit can result in penalties of up to 200% of the SGC.
2. False or misleading statements:
Making false or misleading statements leading to underpayment of the SGC may trigger administrative penalties of up to 75% of the shortfall amount.
These penalties not only dent the bottom line but also tarnish the reputation of the business. They serve as a stark reminder of the importance of diligent adherence to SG obligations.
To report and rectify a missed SG payment, lodge a Super guarantee charge (SGC) statement and pay the SGC by the due date. Get the SGC statement and instructions for lodging it here:
Super Guarantee Charge (SGC) statement
Leverage technology:
Employers must pay SG contributions to employees’ super funds according to the SuperStream standards, which requires that payments and data are sent electronically in a standard format. A Synectic adviser can assess the different methods available under SuperStream and set up the right electronic solution for your business. We can help you leverage technology solutions to streamline SG processes and minimise the risk of non-compliance.
Be proactive:
While the demands of running a business may seem endless, overlooking SG obligations, including lodging your SGC statement, is a gamble not worth taking. Remember, compliance isn’t just a box to check—it’s a cornerstone of sustainable business practices.
Contact a Synectic adviser today to take control of your SG compliance.
Sharni Jago
Senior Accountant
Sharni is a Chartered Accountant with extensive tax and accounting and business advisory experience. She is passionate about building lasting relationships that allow her to get up close and truly help her clients. Sharni specialises in supporting small to medium business owners. Contact us today and ask to speak with Sharni.
Update (25 March, 2024): Round 2 of the Energy Efficiency Grants has closed. Stay tuned for Round 3 release!
Follow us on social media to stay up to date:
The Energy Efficiency Grants for Small and Medium Enterprises Round 2 program is now open to eligible Tasmanian businesses, offering grants of up to $25,000 to support your transition towards a more sustainable and cost-effective future.
This initiative aims to empower Tasmanian businesses with resources to reduce their energy consumption and environmental impact.
By implementing eligible energy-saving measures, you can:
✅ decrease your energy bills, and
✅ contribute to a greener Tasmania.
You may be eligible to apply for round 2 of the Energy Efficiency Grants if you:
While you cannot use the grant for activities such as purchasing solar panels or replacing broken equipment, here are some eligible options to consider:
✅ We’re here to help!
Our team can provide guidance on navigating the application process and exploring suitable energy-saving solutions for your business. Reach out to a Synectic adviser to discuss your specific needs.
Xerocon 2023 was a whirlwind of innovation, insights, and inspiration for our business services team. Here’s a recap of six valuable topics shared by a huge number of speakers across the two days in Sydney.
Read moreTax might not be high on the list of things you’re thinking about as Christmas approaches. But Christmas will be here in a moment, and many employers will be thinking about recognising their team’s efforts throughout the year. You may already have plans in place, but have you thought about how to manage tax and Christmas gift-giving? Especially FBT on your staff Christmas gifts and work party.
Feel free to celebrate, but make sure you don’t get stung with unexpected taxes. FBT and associated income tax and GST pitfalls are the big ones to watch out for.
Small business owners (with an annual turnover under $50 million) should consider the following tax deductions if you are planning to invest in skills and training or improving your energy efficiency. Each measure will lend a hand with an extra 20% tax deduction for relevant expenses, as outlined below.
Read moreWe are thrilled to share some exciting news: we are now an official Dext partner! This partnership continues our commitment to providing expert advice and innovative solutions for business owners.
As a Dext partner, we can help you streamline your bookkeeping processes, allowing you to focus on what matters most – growing your business. Through our partnership, our clients can also benefit from discounted pricing on Dext Business plans.
But what exactly is Dext, and how can it transform your bookkeeping?
Read moreAs technology continues to advance, the threat of falling prey to cybercrime grows.
Cyber criminals are always looking for loopholes and vulnerabilities in your organisation’s technology infrastructure, hoping to disrupt operations or access sensitive data. It’s vital that SMEs and NFPs take proactive action to reduce these cyber risks.
Read moreWhile the recent Federal Budget provided few surprises for business and avoided any significant tax reform, there were a few announcements which will be of interest to many of our business clients.
Read moreIn the digital world we live in, managing people’s personal information and data has never been more important. Almost half of all cyber-attacks target small-to-medium sized businesses, and half of all data breaches result from cyber-security incidents, so knowing what your legal obligations as a small business are is critical. With the Privacy Legislation Amendment Bill 2022 passed late last year, maximum penalties that can be applied for non-compliance, serious, or repeated breaches of the Privacy Act have increased. The Bill also provides the Office of Australian Information Commissioner (OAIC) with enhanced enforcement powers and strengthens the Australian Notifiable Data Breaches scheme.
While most small businesses are not covered by the Privacy Act 1988, some are.
A small business is one with an annual turnover of $3 million or less. Annual turnover for the purpose of the Privacy Act includes all income from all sources – it does not included assets held, capital gains or proceeds of capital sales.
However, regardless of turnover, the Privacy Act covers any business that is:
If the Privacy Act covers your small business, you will have to comply with the Australian Privacy Principles (APPs). As well as the APPs, the Privacy Act includes specific matters that some small businesses may be required to comply with.
Still unsure whether the Privacy Act applies to your small business, or need help ensuring you have appropriate systems and processes in place to comply?
A Synectic adviser can review your needs and provide advice on what you need to do to meet your obligations.
Claire is a senior executive and accountant with almost 20 years’ experience across the private and public sectors. She is an Associate Member of the Institute of Internal Auditors, an Internal Quality Auditor, and an independent member of the Department of Treasury and Finance Audit & Risk Management Committee. Claire is passionate about business performance and has an extensive background in risk management. Contact us today and ask to speak with Claire.