With the end of the financial year fast approaching, it's time to prepare for key tax and compliance updates that could impact your business. From superannuation changes to GST reporting shifts, being proactive will help you stay compliant and avoid unnecessary costs.

EOFY tax changes ahead:

Superannuation Guarantee Increase

From 1 July 2025, the superannuation guarantee (SG) rate will increase from 11.5% to 12%. Employers will need to contribute more to employees’ super.

• Small businesses should review payroll budgets and factor in the increased costs now.
• Employees may benefit from higher super contributions, improving their long-term retirement savings.

What should businesses do now?

✔️ Review payroll software and systems to ensure compliance with new SG rate.
✔️ Update budgets to reflect increased employer contributions.
✔️ Communicate changes to employees to ensure transparency and understanding.

While this may seem like a small increase, it adds up, especially for businesses with multiple employees. Ensuring payroll systems are updated ahead of time will help avoid penalties and compliance issues.

Payday Super: A Big Shift for Employers

Set to begin 1 July 2026 (still undergoing consultation), this reform will require employers to pay super at the same time as wages, rather than quarterly. This aims to boost retirement savings for workers by ensuring super is deposited regularly.

• It may require cash flow adjustments for businesses, especially those accustomed to quarterly payments.
• The ATO will use real-time payroll data to monitor compliance.

What can businesses do now?

✔️ Review payroll systems (can super payments be processed per pay cycle).
✔️ Adjust cash flow strategies to accommodate more frequent payments.
✔️ Set aside super and PAYG withholding each pay cycle to avoid shortfalls.
✔️ Stay updated on final legislative changes and implementation timelines.

Businesses should start planning early to manage cash flow effectively and avoid compliance risks.

Monthly GST Reporting for Some Businesses

From 1 April 2025, the ATO will require certain businesses to switch from quarterly to monthly GST reporting if they have a history of:
❌ Late lodgments
❌ Unpaid GST debts
❌ Incorrect reporting

The ATO believes monthly reporting helps businesses stay on top of their tax obligations and manage cash flow more effectively. If your business is affected, you will receive an ATO notification. You must remain on a monthly reporting schedule for at least 12 months before you can request a return to quarterly reporting

Struggling with BAS payments?
✔️ Contact your accountant to develop a cash flow management strategy.
✔️ Consider setting up a separate account to set aside tax payments regularly.
✔️ Ensure timely lodgments to avoid additional penalties or interest charges.

Lodging Your Tax Return: Why Timing Matters

Avoid lodging too early! Employers have until 14 July to finalise payroll and submit income statements to the ATO. Other organisations, such as banks and health funds also submit pre-fill data during this period.

Lodging before all reporting is complete can lead to errors and delays, requiring amendments later.

Best practice:
✔️ Wait until mid to late July to ensure all reporting is accurate before lodging.
✔️ Check that all income statements, deductions, and ATO pre-fill data are correct.
✔️ Engage with your accountant to review your return and identify tax-saving opportunities. By taking a little extra time to verify financial data, businesses can avoid unnecessary amendments and maximise deductions.

Forsyths is here to help! Contact our team before EOFY for expert guidance on how to navigate these tax updates effectively.