What's changing on 1 July 2015?
18 June 2015
The start of a new financial year bring changes to government programs, requirements and fees. Read on to find out some of the key changes you should be aware of in regard to tax, superannuation, employing and ASIC fees.
If your business has a turnover less than $2 million you are set to benefit from 1 July when tax cuts and deductions become available.
- 1.5% cut in the company tax rate (new rate 28.5%).
- 5% tax discount for unincorporated businesses, such as sole traders, (up to $1000).
- Immediate deduction of assets under $20,000 (this initiative commenced 12 May 2015).
- Immediate deduction for professional expenses when starting the business. For example professional, legal or accounting services and advice.
- One rate for work related car expenses, set at 66 cents/km, will apply to all cars regardless of engine size. The current 12% of original value and one-third of expenses deduction options will be removed.
- SuperStream starts for small businesses with less than 20 employees. Businesses will have until 30 June 2016 to meet the requirements. SuperStream aims to reduce the complexity, time and business cost require to pay the employee superannuation guarantee.
- Eligibility for the Small Business Superannuation Clearing House expands to include businesses with either a turnover under $2 million or less than 20 employees. The Clearing House meets SuperStream requirements.
- Minimum wage will increase by 2.5% to $656.90 per week or $17.29 per hour. Award pay rates will also increase by 2.5%. The Fair Work Ombudsman is working to update the pay rates in their Pay & Conditions Tool.
- Jobactive will replace Job Services Australia. Jobactive is an employment service that will help employers to find employees and provide access to wage subsidies for young, mature age, Indigenous and long term unemployed people.
- ASIC business registration fees will increase based on the Consumer Price Index. Business name registration and renewal will remain at $34 for one year and increase by $1, to $79, for three years. Information about other fee increases, including company registration, is available on the ASIC website.