The start of a new financial year has brought a range of changes that may impact businesses.
With new laws, regulations and incentives being introduced at both state and federal levels, it can be hard to keep up with all of the changes that take effect from 1 July 2019 and whether they will apply to you.
Below is a guide to the most significant changes likely to impact small businesses.
New minimum wages
Increases to the national minimum wages will come into effect from the first pay period on or after 1 July 2019.
If your business operates under the federal industrial relations system (which covers businesses such as ‘Pty Ltd’ companies), the Fair Work Commission has announced a 3 per cent increase to all minimum rates of pay under the federal modern awards. The new national minimum wage is now $740.80 per week or $19.49 per hour. Visit the Fair Work website to read more about the increase to the national minimum wage.
Single Touch Payroll
The way you report employee payments and superannuation will change with the introduction of Single Touch Payroll (STP) for all employers from 1 July 2019. The Australian Taxation Office (ATO) has provided small businesses with a three month transition period to help you get ready for STP, so you’ll need to have implemented this new process by 30 September 2019. Find out what you need to do to prepare for STP.
Inactive low-balance superannuation accounts
If you have been an irregular payer of your own super and have an inactive low-balance account, new laws (known as the Protecting Your Superannuation Package) will require superannuation providers to report and transfer these accounts to the ATO.
Increase and extension of instant asset write-off
In case you missed it during the Federal Budget announcement, the popular instant asset write-off for small businesses (with a turnover of less than $10 million) has been increased to $30,000 and the deadline has been extended to 30 June 2020.
Before making a large purchase, remember to speak to your accountant and assess how the asset will benefit your business. For more information read the instant asset write-off explained.
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Sources: Small Business Development Corporation
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