As a result of two elections (federal and state) and a federal Budget within the last twelve months, small business owners now have a raft of new legislation and Budget initiatives – all taking effect from 1 July 2017.
Check out the changes, see what applies to you and how to take advantage of it:
New minimum wage announced
The Fair Work Commission announced the new minimum wage for Australian workers has increased by $22.20 per week taking the minimum full time wage to $694.90 per week or $36,108 per year.
For those employees not covered by an award or an enterprise agreement, the nationally declared minimum wage provides a safety net and employers must provide these employees with at least these minimum wage entitlements.
The National Employment Standards (NES) cannot be overridden by the terms of enterprise agreements or awards.
For more information on paying your employees correctly, visit the Fair Work Commission, or contact the Small Business Development Corporation on 13 12 49.
Unfair dismissal changes
As a result of the Fair Work Commission’s annual wage reviews, the income threshold for employees who are covered by unfair dismissal laws increases again this year.
Now, employees who earn up to $138,900 per year will be covered by unfair dismissal laws, up from the previous $136,700 threshold.
For more information visit the Fair Work Commission.
Simpler BAS on the way
On 1 July 2017 small businesses with GST turnover of less than $10 million were automatically transferred to ‘Simpler BAS’ by the ATO.
Now the only GST information you need to report is:
- G1 total sales
- 1A GST on sales
- 1B GST on purchases
From now on, if you lodge using a paper BAS form you can just leave the sections blank where information is no longer needed. There will be no other changes to this form, the reporting frequency or how other taxes are reported on your BAS.
Reducing GST reporting will save you time and money by simplifying account set up and bookkeeping, along with BAS preparation and lodgement.
To familiarise yourself with the benefits of Simpler BAS, please contact us on 08 9321 2642.
Improving capital gains tax concessions
Changes have been made to capital gains tax (CGT) concessions to ensure that only eligible owners of small businesses can access them.
The small business CGT concessions will continue to be available to small business taxpayers with aggregated turnover of less than $2 million or business assets less than $6 million.
Before applying for the CGT concessions make sure you are eligible.
If you have any questions, please contact us on 08 9321 2642.
Superannuation changes
Several changes are taking place to Australia’s superannuation system and most of them started on 1 July 2017. You or your employees may be affected if:
- you make extra super contributions
- you have an income over or close to $250,000
- you or your spouse have an income less than $40,000
- you’ve taken a break from the workforce or your work part-time
- you’re approaching retirement.
If you have any questions, please contact us on 08 9321 2642.
Don’t keep your super valuables at home
Operators of self-managed super funds will now need to be more security conscious.
If your self-managed superfund owns artwork, jewellery, vintage cars or other major ‘collectibles’, you will no longer be able to store these items at your residence.
For more information on a range of changes to superannuation, visit the ATO. Alternatively, please give us a call on 08 9321 2642.
Extending the $20,000 instant asset write-off tax provision
Eligibility for small business owners to instantly write off business-related purchases of less than $20,000 value has been extended for a further twelve months.
The deduction can be used for each business asset that costs less than $20,000, whether new or second-hand. You can claim the deduction through your tax return, in the year the asset was first used or installed ready for use.
Small businesses can immediately deduct the business portion of most assets if they cost less than $20,000 and were purchased between 7.30pm on May 2015 and 30 June 2018.
If you have any questions please contact us on 08 9321 2642.
GST – removing double GST on digital currency
The GST treatment of digital currency (such as Bitcoin) is now the same as cash money.
Prior to 1 July 2017. digital currency was treated as intangible property for GST purposes. Consequently, consumers who used digital currencies as payment effectively paid GST twice – once on the purchase of the digital currency and again on its use in exchange for other goods and services subject to GST.
If you have any questions please contact us on 08 9321 2642.
This information is provided to you by the Small Business Development Corporation (Dated: 4 July 2017)
