Summary of key changes for businesses implemented on 1 July
Summary of the key changes for businesses
Here are a list of changes that have been implemented on 1 July 2015, you should be aware of these changes 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.
Visit the Fair Work Ombudsman website to find out more about the wage increase and new award rates.
Jobactive to replace Job Services Australia
Jobactive will come into place on 1 July 2015, replacing Job Services Australia. Jobactive aims to better meet the needs of employers and job seekers by:
- helping you find staff at no charge to you
- making sure potential employees meet your business needs
- training potential employees to prepare them for the work environment
- providing wage subsidies when you employ and provide training for young job seekers, mature aged job seekers, Indigenous job seekers and long term unemployed job seekers
- providing more tailored online services to help you with advertising and managing your vacancies.
For more information on the changes, head to the Department of Employment website.
Expanded eligibility for the Small Business Superannuation Clearing House
From 1 July 2015, eligibility for the Small Business Superannuation Clearing House will be changed to include businesses which have an annual aggregated turnover of $2 million or less.
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.
Learn more about SuperStream from the Australian Taxation Office (ATO) website.
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).
Find out the new rates from the ASIC website.
There will also be fee changes for the Australian Financial Security Authority (AFSA), and the Personal Property Securities Register (PPSR).
Check out the fee changes for AFSA on AFSA’s Fees and charges page.
Visit the PPSR website for the new PPSR rates.
Changes to tax for small business
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).
Visit the Business.gov’s Jobs and Small Business package page for more information on the changes to come into effect.
Check the ATO website External Site for the latest details.
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.
Check out the ATO website to find out more about Withholding for 27 fortnightly or 53 weekly pays in a year.
Source: Business.gov search the original article here
