Small businesses should know the changes from 1st July.

 Instant Asset write-off:

The Australian government announced that small businesses will able to immediately deduct the full cost of eligible assets costing less than $20,000. The $20,000 threshold will apply on a per-asset basis, so small businesses can instantly write off multiple assets.

An asset valued at $20,000 can continue to be placed into the small-business simplified depreciation pool and depreciated at 15%in the first income year and 30% each income year after that.

Small business energy incentive:

The scheme will provide businesses with an annual turnover of less than $50 million with an additional 20% deduction for an eligible asset that supports electrification and more efficient use of energy.

This change will help small businesses make investments like:

  • Electrifying their heating and cooling systems
  • Upgrading to more efficient fridges and induction cooktops
  • Installing batteries and heat pumps.

Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024. The scheme is still pending passing through parliament.

Super Guarantee:

From 1 July the super guarantee rate would increase from 10.5% to 11% for eligible employees.

National minimum wage and award rate:

From 1 July 2023, the national minimum wage is $882.80 based on a week of 38 ordinary hours which is $23.23 per hour and award rates of pay would be increased by 5.75%

Single Touch Payroll:

Small businesses were warned of the need to finalised their employees’ single touch payroll data by 14 July.

Businesses need to report payroll information to ATO each time they pay them through STP-enabled software. Payroll information includes:

  • Salary and wages
  • Pay-as-you-go (PAYG) withholding
  • Superannuation liability information.

Paid parental leave scheme:

From 1 July 2023, eligible employees who are a carer of a newborn or newly adopted child can get up to 20 weeks of Parental Leave Pay which is paid at the National Minimum Wage.

For employees whose baby was 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.


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