Summary of the key changes for business starting on 1 July
June 24, 2015
The beginning of a new financial year can be a busy time for business owners. To help you, we've put together a list of changes that are coming on 1 July 2015 that you should be aware of, as they may affect your business compliance.
2.5% increase to minimum wage
From 1 July 2015, there will be a 2.5% wage increase for employees who are paid rates from:
the national minimum wage
a modern award
certain registered agreements.
The national minimum wage will be increased to $656.90 per week, or $17.29 per hour.
Using the Clearing House to meet your business's super obligations will also ensure that your business is SuperStream compliant.
SuperStream begins for small business
For businesses with 19 or fewer employees, SuperStream will start on 1 July 2015. Your business must be SuperStream compliant by 30 June 2016.
For businesses with 20 or more employees, your business needs to be SuperStream compliant by 30 June 2015. If your business is not compliant, you must be able to demonstrate that you have a plan in place for your business to be compliant by 31 October 2015.
Fee changes from 1 July
Certain registration and service fees from the Australian Securities and Investments Commission (ASIC) will increase on 1 July 2015, based on the Consumer Price Index (CPI).
A number of taxation measures to help small business are set to come in place for the 2015/16 financial year. These measures are available for small businesses with an annual turnover of less than $2 million, and include:
reducing the income tax rate to 28.5% for small business companies
a 5% tax discount for other small business
immediate depreciation of any eligible assets that cost less than $20,000 (from 12 May 2015)
immediate deduction of professional costs related to starting a small business in the year they are incurred (rather than over five years).
Extra pay period in the 2015/16 financial year
There are 27 pay periods for the 2015/16 financial year (usually a year consists of 26 pay periods). What this means is that employees who would usually expect to receive a tax refund may find that they owe money instead due to the extra pay period.
For the employees that you withhold tax for (through Pay As You Go (PAYG) withholding), it's a good idea to provide them with the option of withholding additional amounts from their pay to avoid the possible debt.