What changed on 1 July 2023

What changed on 1 July 2023

Happy New Financial Year!

1 July doesn’t just mean you can start working on your taxes, there’s a raft of changes that came into effect impacting business owners, retirees, families and employees.

Here’s a breakdown of the changes happening from July 1.

 

Employers & business

• Superannuation guarantee increases to 11% from 10.5%
• National and Award minimum wage increases take effect.
• The minimum salary that must be paid to a sponsored employee – the Temporary Skilled Migration Income Threshold – increased to $70,000 from $53,900.
• Work restrictions for student visa holders reintroduced to 48 hours per fortnight.
• The cap on claims via the small claims court procedures for workers to recover unpaid work entitlements increases from $20,000 to $100,000.
• Energy Bill Relief Fund for small business kicks in – it will apply to your energy bills if you meet the criteria.
• Sharing economy reporting to the ATO commences for electronic distribution platforms.

 

Superannuation

• Superannuation guarantee increases to 11%
• Indexation increases the general transfer balance cap to $1.9 million.
• Minimum pension amounts for super income streams return to default rates.
• SMSF transfer balance event reporting moves from annual to quarterly for all funds.

 

For you and your family

• The new 67 cent fixed rate method for working from home deductions – make sure you have a record of when you work from home. The ATO won’t accept a simple “I work from home every Wednesday” x 8 hours calculation.
• The cents per kilometre rate for motor vehicle expenses for 2023-24 has increased to 85 cents.
• Access to the first home loan guarantee expands to “friends, siblings, and other family members.”
• The Medicare low income threshold has increased for 2022-23.
• The child care subsidy will increase from 10 July 2023 for families with household income under $530,000. See the Services Australia website for details.
• New parents able to claim up to 20 weeks paid parental leave.
• Access the age pension increased to 67 years of age.            

 

How can we help?

If you are unsure about how these changes affect you or your business, please get in touch with our tax team and we can assist you. You can reach us on (07) 3023 4800 or at mail@marshpartners.com.au.

You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. If you need high-level support for your business, get in touch with our specialists on 07 3023 4800 or at mail@marshpartners.com.au.