Our latest insights

The Taxation Ruling TR 2023/4DC1 has been updated to include a draft appendix that expands the definition of ‘employee’ specifically for superannuation guarantee purposes.

From 1 July 2024, revised tax rates will affect NFP salary packaging. Despite reduced rates impacting tax savings, employees should still see savings, varying by income and salary packaging arrangements.

New return requirements and DGR reviews in the not-for-profit sector now require non-charity organisations to submit annual tax-exempt status reviews to the ATO.

The ATO has recently finalised its guidelines on how electricity costs for charging electric vehicles at home may be calculated for FBT and income tax purposes.

The employment taxes landscape in Australia is constantly evolving. There has been increased focus from the Australian Taxation Office and State Revenue Offices, leading to a rise in employment tax compliance audits.

At the beginning of December, the ATO released TR 2023/4: Income tax: pay as you go withholding - who is an employee? Key factors include contracts, control, delegation, tools, risk, and labels. The ATO outlines criteria for investigations, focusing on intentions, written agreements, understanding tax implications, performance consistency, compliance, advice, and Superannuation Guarantee Act treatment.

Businesses may be at risk if they fail to understand the different tax, super and other obligations for employees or contractors.

From 1 July 2026, employers will need to pay superannuation for their employees on the same day they pay the salary and wages to which it relates.

Organisations that used to have the option of self-assessing their income tax exemption status will soon be required to submit an annual self-review report to the Australian Taxation Office.

The recent Court decision in the Bechtel Australia Pty Ltd v FC of T 2023 (the Bechtel case) ruling that fly-in-fly-out (FIFO) employees’ travel is deductible, has created a shift in the treatment of travel expenses for workers in mining, gas, transport and other industries. This ruling contrasts with the John Holland Group Pty Ltd v Commissioner of Taxation [2015] FCAFC82 (the John Holland case), causing notable effects.

During the FY23 financial year, our Employment solutions team highlighted key updates, issues and ATO review activity that finance and payroll leaders need to be across in a series of webinars, seminars and insights. Here we’ve summarised some of those key items which remain relevant as we approach FY24 including fringe benefits, single touch payroll, superannuation guarantee, employee vs contractor and employee share schemes.

We have heard from numerous clients that their employees are concerned about the new reporting required under Single Touch Payroll Phase 2 (STP2). In particular, the concern relates to how salary packaging arrangements might impact various means tested government levies and allowances – such as Family Assistance and Child Support Payments.