What Changed on 1st July 2023?

Jul 5, 2023 | 2023, Deductions, Employers, retirement, Small Business, Superannuation, Working From Home

What changed on 1st July 2023?

Recent proposed changes commenced from the 1st July this year, heralding in the new Financial Year. It’s a very mixed bag of alterations which some will be happy about and some may not. Check them out below in our featured article. If you need help with understanding, implementing or reporting on any of these if they impact you, please get in contact with us on 49 264155 or email admin@tspaccountants.com.au and speak with one of our Directors and Managers.

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.
  • 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