The new financial year brings with it lots of changes for small business owners to be abreast of. We provide below a summary of key changes that may impact your business.
National minimum wage and award rate increase
Small businesses need to be aware that from the first full pay period on or after 1 July, the national minimum wage would increase to $23.23 per hour and that award rates of pay would be increased by 5.75 per cent.
Please ensure your payroll data is updated to handle the increase to avoid underpayment to employees.
Super guarantee rate increase
From 1 July the super guarantee rate on employee earnings would increase from 10.5 per cent to 11 per cent for all employees eligible to receive superannuation.
You will need to use the new rate to calculate super on payments made to your employees on or after 1 July, even if some or all of the pay period was for work done before 1 July.
Single touch payroll
All businesses have a requirement to have finalised their employees’ single touch payroll data by 14 July 2023. This is vitally important to ensure employees are not incorrectly lodging their tax returns with unfinalized data.
Instant asset write-off
From 1 July the instant asset write-off threshold for eligible small businesses will be capped at $20,000 on a per-asset basis for the year ahead.
From 1 July assets valued at more than $20,000 that could not be immediately deducted could be placed into the small-business general depreciation pool and depreciated at 15 per cent in the first income year and 30 per cent each following year.
Paid parental leave scheme
For employees who have a baby born or placed in their care on or after 1 July, the scheme would change with the 18 weeks of paid parental leave entitlement combined with the dad and partner entitlement of two weeks’ pay.
The change would mean partnered couples would be able to claim up to 20 weeks of paid parental leave between them, while parents who were single at the time of their claim could access the full 20 weeks.
You should check your payroll and accounting systems have been updated and where you are unsure, engage the advice of your accountant or HR expert.