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Update 3 July 2023


Happy new financial year!

We are feeling so positive about the year ahead.

The new financial year in Australia for 2023 marks an important period of financial planning and reporting for individuals, businesses, and the government.

For individuals, the new financial year often entails reviewing personal finances, setting new financial goals, and taking advantage of any changes in taxation laws or regulations. It is an opportune time to assess one's income, expenses, and investments, and to plan for the year ahead. Many individuals use this period to evaluate their superannuation contributions, salary packaging options, and potential tax deductions.

Businesses also face numerous obligations during the new financial year. It is a time when they must reconcile their financial records, finalise annual reports, and submit tax returns. Additionally, businesses often reassess their budgets, set new targets, and undertake strategic planning for the upcoming year. Employers also need to be aware of any changes to employment laws, minimum wages, or superannuation contributions that may come into effect. In recent years, there has been a growing emphasis on digital transformation and automation in financial matters. The ATO has introduced initiatives such as Single Touch Payroll (STP) to streamline reporting obligations for employers, and myTax, an online platform for individuals to lodge their tax returns electronically. These technological advancements aim to simplify financial processes and improve compliance.

Overall, the new financial year in Australia represents a period of reflection, planning, and compliance for individuals, businesses, and the government. It is a time to review financial positions, set new goals, and ensure compliance with taxation and reporting requirements. Staying informed about any changes in legislation and utilizing available resources can help individuals and businesses navigate the financial landscape effectively.

This month's market update the 2022 market initially anticipated a rapid rise in interest rates, but by January 2023, it became evident that these expectations would not be met. Interest rates saw a more modest increase of 15%, prompting investors to shift their focus to the economic outlook. They believed that the recession would be less severe due to lower interest rates, leading to a reassessment of market declines and the emergence of opportunities. Companies such as Alphabet, Amazon, and Meta experienced significant rallies, driven by positive earnings prospects. The tech sector, fueled by Artificial Intelligence, saw a strong rally following Nvidia's announcement of increased chip demand. Looking ahead, economic data on inflation and growth will determine the severity of the recession in 2023/2024, while market volatility is expected to persist throughout the year.

Do you know that we offer insurance to cover you in the event of an ATO audit? This includes the cost of us representing you. We recommend Audit Shield service to safeguard you against unforeseen expenses arising from audit activities conducted by the Australian Taxation Office (ATO) and other government revenue authorities. This optional service provides protection for individuals, businesses, and Self Managed Superannuation Funds (SMSFs) by covering costs associated with audits, inquiries, investigations, reviews, or examinations of lodged returns or financial compliance obligations. It is essential to note that audit activities can impact all taxpayers, irrespective of their entity type. For more read below.

Are you aware of what changes may affect you on 1 July? As the 2023-24 financial year begins, there are several important changes that businesses need to be aware of. These changes encompass a range of areas, including tax, superannuation, depreciation rules, energy bills, migration, employment thresholds, unfair dismissal, parental leave, reporting regulations, penalty units, company registration fees, and small claims procedures.

Grant funding for time-sensitive projects provides support and strategically significant projects in regional NSW that are aligned with priority industries or locations. It offers matched funding ranging from $1 million to $10 million and is open to NSW organizations undertaking regional projects. The grant aims to promote the growth of existing industries and the establishment of new/emerging industries, create high-quality employment opportunities, foster higher-value-added activities and participation in global value chains, and encourage collaboration among businesses, education, research institutions, and other stakeholders.

The Northern Rivers holds regular Community Events. See what's on and keep up to date on all the fantastic opportunities available and help to support local.

A reminder, there are some important lodgement dates to note this month.


The WD Nicholls Team


Well, what a 2022/2023 financial year this has been when you look at where we were at the end of the last financial year!


In 2022 the market was attempting to predict a couple of things. How quickly are interest rates going to increase and how high are interest rates going to increase too? In July 2022 the answer to these questions was very quickly (50 basis point increase every month until December) and very high (above 5% in Australia). Fast forward to January and it started to become evident that rates were not going to reflect the views of the market in July. So we saw an increase of 15% from the 1st July 2022 until 1st January 2023.


For the second half of the year, markets were trying to understand what the economic outlook will look like for the next 12 months. The view, and still is that the recession will not be as deep as originally expected due to interest rates not being as high. With this view, investors started to assess the recent sell-off and to see what opportunities had been created. The likes of Alphabet (Google), Amazon and Meta (Facebook) have all rallied 30%, 51% and 130% respectively as the expectation of their earnings not falling as far as expected. The tech market has rallied in the month of May and June with Artificial Intelligence (AI) being the new theme. This was sparked by Nvidia (chip manufacturer) announcing the significant increase in demand for their processing chips. The Nasdaq is up 11% in 2 months. As a result of this positive news, and expectations were not as negative, in July 2002 the year finished as follows:

What does 2023/2024 look like? The next 3 to 6 months will be focusing on economic data to see what happens with Inflation and economic growth. The question to be answered is, will the US and Australia only suffer a mild recession or will it be a little worse than expected? We would expect volatility in markets to be more evident for the rest of this calendar year.


We always recommend Audit Shield which is an optional service to protect you from incurring unexpected costs as a result of an audit, inquiry, investigation, review or examination (audit activity) of lodged returns or financial compliance obligations instigated by the Australian Taxation Office (ATO) and other government revenue authorities. Specific levels of cover are available for individuals, businesses, and Self Managed Superannuation Funds (SMSFs).


Audit activity can affect all taxpayers regardless of whether you are an individual, a business, or have a Self Managed Superannuation Fund. Below are just a few examples of recent focus areas:


Single Touch Payroll (STP) & Superannuation Guarantee (SG)

The ATO now knows every business that is registered for STP that has not met their PAYG and SG payment requirements. That enables greater compliance cross-checking which leads to more audit activity.


BAS Reviews (Pre & Post Assessment)

BAS Reviews attract a lot of audit attention from the ATO and were noted as one of the most highly reviewed audit focus areas in the last financial year. The ATO are trying to stamp out errors in BAS submissions by introducing the online BAS check tool however this only reinforces that it is a key focus area.


Payroll Tax

Payroll Tax continues to be a major focus area. Data sharing with other government authorities is assisting in raising red flags in this area, as well as in other related tax areas such as Land Tax and Stamp Duty.


Black Economy or Cash Economy

Accepting cash as payment is legitimate however, the ATO has benchmarks that it uses to determine if a business is not declaring all of their income. Businesses that do not comply may be audited.


Self Managed Superannuation Funds (SMSF)

An SMSF is an excellent nest egg for the future but there are a lot of compliance issues related to the risk, return, and liquidity of the funds’ investments that need to be fully addressed. One minor issue could flag attention from the ATO that will place the SMSF under scrutiny.


Work-Related Expenses

Many individuals have fully claimable work-related expenses but the ATO has stated recently that individuals have been making excessive claims and this has led to the ATO scrutinising work-related expenses much more closely.


Rental Properties

The ATO intends to significantly increase the number of reviews and audits it conducts in relation to rental property claims with respect to capital works, capital assets, or other rental property related expense claims. The ATO also wants all taxpayers to be aware that if you earn income through sharing-economy services like Airbnb that this must be declared in your tax return.


Is it right for you?

All of our clients can take advantage of the Audit Shield service. Specific levels of cover are available for individuals, businesses, and SMSFs. Anyone can be targeted, even if their lodgements are accurate. Data matching capabilities are profound and are increasing the level of audit activity of both compliant and non-compliant taxpayers. With this in mind, we offer you the opportunity to protect yourself with Audit Shield.


If you would like to know more about the Audit Shield service, please contact us.


Source and credit: Audit Shield


As the 2023-24 financial year begins, there are several important changes that businesses need to be aware of. These changes encompass a range of areas, including tax, superannuation, depreciation rules, energy bills, migration, employment thresholds, unfair dismissal, parental leave, reporting regulations, penalty units, company registration fees, and small claims procedures.

Here is a summary of the key changes for businesses:

  1. Minimum wage increase: The national minimum wage will increase to $882.80 or $23.23 per hour from July 1, affecting employees not covered by an award or registered agreement.

  2. Instant asset write-off: From 1 July the instant asset write-off threshold for eligible small businesses would be $20,000 on a per-asset basis for 12 months.

  3. Superannuation guarantee rate: The superannuation guarantee (SG) rate will increase from 10.5% to 11% on July 1, 2023. Employers must use the new rate to calculate super payments.

  4. Changes to asset depreciation rules: The Temporary Full Expensing regime will end on July 1, with businesses reverting to the Instant Asset Write-Off model. Businesses with an annual turnover of less than $10 million can claim immediate tax deductions on assets up to $20,000 in value.

  5. Energy bill relief: Eligible small businesses will receive energy bill relief of up to $650 from July 1, provided by the federal government and some states and territories.

  6. Migration changes: Employers sponsoring temporary skilled migrants must pay them more than the Temporary Skilled Migrant Income Threshold (TSMIT), which will increase to $70,000 from July 1.

  7. Cap on international worker hours: The 40-hour-a-week cap for student visa holders, which was relaxed during the COVID-19 pandemic, will return on July 1 with a new limit of 48 hours per week.

  8. Unfair dismissal high-income threshold: The income threshold for unfair dismissal claims will increase to $167,500 from July 1, 2023, with a compensation limit of $83,750.

  9. Fair Work Commission fees: Paperwork fees at the Fair Work Commission will increase to $83.30 for applications related to dismissal, general protections, bullying, and sexual harassment at work.

  10. Parental leave: From July 1, the entitlement to 18 weeks of paid parental leave will combine with the current Dad and Partner Pay entitlement of two weeks, resulting in a 20-week paid parental leave entitlement for eligible parents.

  11. Sharing Economy Reporting Regime: The Australian Taxation Office (ATO) will collect data from accommodation booking platforms and rideshare apps starting July 1 to ensure correct income tax reporting.

  12. Penalty unit increase: Penalty units will increase to $284 from July 1, affecting fines in both criminal and civil proceedings under federal law.

  13. Business and company name registration fees: Fees for registering a company, reserving a company name, and business name registration or renewal will rise in accordance with indexation.

  14. Small claims procedure: The cap on unpaid entitlements that employees can seek through the small claims process will increase from $20,000 to $100,000, providing more options for resolving pay claims.

These changes require businesses to stay informed and ensure compliance with updated regulations, taxation, and employment obligations. It is advisable to consult relevant authorities and seek professional advice to understand the specific implications for individual businesses.

Source and credit: Smartcompany.com.au


This program supports projects in regional NSW that are time-sensitive and strategically significant for a priority industry or location.

Application detail:

What do you get? Matched funding from $1 million to $10 million.

Who is this for? NSW organisations undertaking regional projects.

Overview The objectives of the grant are to:

  • support the growth of existing industries and the establishment of new/emerging industries where regional NSW has a strong actual or potential competitive advantage

  • create new high-quality employment opportunities

  • support the shift towards higher-value-added activities and participation in global value chains and supply chains

  • promote collaboration between businesses, education and research institutions and other parties through sharing of knowledge, resources and infrastructure.

Check if you can apply To be eligible, applicants must :

  • have an Australian business number (ABN)

  • be registered for goods and services tax (GST)

  • be financially viable for the duration of the project

  • have at least $20 million public liability insurance.

Applicants must also be one of the following:

  • a company incorporated in Australia

  • a company limited by guarantee

  • an incorporated trustee on behalf of a trust

  • an incorporated association or co-operative

  • an Aboriginal and/or Torres Strait Islander Corporation registered under the Corporations (Aboriginal and /or Torres Strait Islander) Act 2006.

Projects must:

  • be located in one of the 93 regional NSW local government areas

  • demonstrate the project would not occur within regional NSW without funding

  • be delivered and operational by 30 May 2025

  • support sustainable employment opportunities and drive productivity, innovation and competitiveness

  • deliver significant economic, social and environmental benefits

  • not be suitable for financial support under other Australian and NSW funding programs.

Source and credit: Business.gov.au


We always like to support our locals! Here are some community events happening this month (in date order).


NAIDOC week family fun date is Wednesday, 5 July 2023 | 11:00 AM to 3:00 PM

Go along to the Mullum Neighbourhood Centre's NAIDOC Week Community Fun Day.

Enjoy activities such as:

  • BBQ Lunch

  • Arts and Crafts Workshop

  • Weaving

  • Yarning Circle

  • Music

  • Dancing and more.

Location: Mullumbimby Neighbourhood Centre, 55 Dalley Street, Mullumbimby, 2481


Mullumbimby Community Market next date is Saturday, 15 July 2023 | 8:00 AM to 2:00 PM

The Mullumbimby Community Market is held on the third Saturday of each month from 8:00 am to 2:00 pm.

Location: Corner of Stuarts and Myocum Streets, Mullumbimby


Service NSW Mobile Service Centre visit to Ocean Shores next date is Tuesday, 25 July 2023 | 9:00 AM to 3:00 PM

Service NSW Mobile Service Centre visits our community to personally deliver access to essential NSW Government services, including:

  • Driver licence, photo card applications and renewals

  • Driver Knowledge Tests

  • Working With Children Check applications

  • Applying for birth, death and marriage certificates

  • Cost of Living service to access more than 40 government rebates and savings.

Service NSW Mobile Service Centres are fitted with a ramp for easier access for all members of the community.


Check the timetable and find out what you need to bring by visiting Mobile Service Centres.

Please check the website on the day for final confirmation of the Mobile Service Centre arrival or call 13 77 88.


Location: Ocean Shores Country Club - Car park, 113A Orana Road, Ocean Shores, 2483


Service NSW Mobile Service Centre visit to Mullumbimby next date is Wednesday, 26 July 2023 | 9:00 AM to 3:00 PM

Service NSW Mobile Service Centre visits our community to personally deliver access to essential NSW Government services, including:

  • Driver licence, photo card applications and renewals

  • Driver Knowledge Tests

  • Working With Children Check applications

  • Applying for birth, death and marriage certificates

  • Cost of Living service to access more than 40 government rebates and savings.

Service NSW Mobile Service Centres are fitted with a ramp for easier access for all members of the community.


Check the timetable and find out what you need to bring by visiting Mobile Service Centres.

Please check the website on the day for final confirmation of the Mobile Service Centre arrival or call 13 77 88.


Location: Byron Shire Council, 70 Station Street, Mullumbimby, 2482


If you want to know more about what is going on in your local community, click the link below.


Source and credit: Byron.nsw.gov.au


If you wish to arrange a telephone appointment or zoom meeting with one of our team please contact our office either by telephone or email.

Key lodgement and payment dates for business

7 July

Employee share scheme (ESS)

  • ESS statements to be sent to employees.

14 July

Single Touch Payroll (STP) finalisation

  • End of year finalisation declaration through STP due.

PAYG withholding

  • Payers must issue PAYG withholding payment summaries to payees (that is, employees and other workers) for payments not reported through STP.

21 July

Activity statements

  • Quarter 4 (April–June) PAYG instalment activity statement for head companies of consolidated groups – final date for lodgment and payment.

  • June monthly activity statements – final date for lodgment and payment.

Finalising all your PAYG instalments before you lodge your tax return will ensure you receive the correct amount of credit in your income tax assessment.

28 July

Activity statements

  • Quarter 4 (April–June) activity statements – final date for lodgment and payment.

Finalising all your PAYG instalments before you lodge your tax return will ensure you receive the correct amount of credit in your income tax assessment.

PAYG instalments

  • Quarter 4 (April–June) instalment notices (forms R and T) – final date for payment and, if varying the instalment amount, lodgment.

Finalising all your PAYG instalments before you lodge your tax return will ensure you receive the correct amount of credit in your income tax assessment.

GST instalments

  • Quarter 4 (April–June) instalment notices (forms SA and T) – final date for payment and, if varying the instalment amount, lodgment.

Superannuation

  • Due date for payment of super guarantee (SG) contributions for quarter 4 (1 April – 30 June) in the previous financial year.

    • SG contributions are to be received by the superfund by this date. You need to allow sufficient time for SG payments to reach and be processed by your super fund, especially if using a SG clearing house.

    • If you don't pay the SG contributions for quarter 4 in full and by this date, you must pay the super guarantee charge (SGC) and lodge a Superannuation guarantee charge (SGC) statement to the ATO by 28 August.

It's important to note, SGC is more than the SG you would have normally paid and is not tax deductible.

31 July

TFN report

  • Quarter 4 (April–June) TFN report for closely held trusts for TFNs quoted to a trustee by beneficiaries – final date for lodgment.

Foreign Account Tax Compliance Act (FATCA) Report

  • The reporting period for the FATCA is 1 January to 31 December. The due date for the report is 31 July the following year.

Common Reporting Standard (CRS) Report

  • Reports from Australian RFIs include data from January to December and are due annually, by 31 July in the following year.


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