The end of the financial year (EOFY) is just around the corner, and the next few weeks are often a hectic time for small businesses as they prepare for EOFY changes in 2017.
Scott Morrison announced in this year's Federal Budget that the accelerated depreciation scheme will be extended for 12 more months.
You may be wondering 'how is EOFY 2017 different from any other year?' Let's take a look at some of the specific things to remember for the 2017-18 FY and beyond.
Is EOFY 2017 the end of accelerated depreciation?
A highly popular measure that allowed small businesses with annual turnovers of up to $10 million to instantly write off assets that cost less than $20,000 was due to end this year. From July 1, the write-off threshold was set to return to $1,000.
However, Treasurer Scott Morrison announced in this year's Federal Budget that the accelerated depreciation scheme will be extended for 12 more months, meaning you have until July 1 2018 to purchase and install high-cost deductible assets. If you are looking to make large-scale investments to spur growth in your business, contact Cashflow Finance to see whether debtor finance can help.
Single Touch Payroll (STP) is introduced
The federal government is launching the STP system this year in an effort to streamline the reporting of employee salaries, superannuation payments and PAYG withholding amounts. STP features within your payroll solution will send relevant information to the Australian Taxation Office in real-time instead of quarterly or monthly.
The ATO is working closely with accounting software providers to ensure platforms are STP ready. While STP reporting will technically launch on July 1 2017, the system will only become mandatory for businesses with more than 20 employees from July 1 2018.
Super changes from July 1
Superannuation is undergoing considerable transformation, so you'll need to prepare for EOFY super changes in 2017. The new measures will affect millions of Australians, including people earning less than $40,000 a year, high-income employees on more than $250,000 annually, anyone wanting to make extra super contributions and retirees or those on the cusp of their golden years.
These changes could have a profound effect on you and your staff, so visit the ATO's website for a full breakdown of what you'll need to know from July 1 2017 onwards.
Would you like to know more about how EOFY 2017 is different? Please get in touch with a member of the Cashflow Finance team for help.