As we enter the new financial year, Australian businesses must stay informed about key changes affecting payroll, superannuation, and more. These updates are essential for maintaining compliance and optimising financial management.
Actium Partners is here to help you navigate these changes and ensure your business runs smoothly and compliantly.
1. Wage Increases Impact on Payroll
The Fair Work Commission has increased minimum wages, affecting payroll operations across Australia. This change impacts not only minimum wage employees but also payroll calculations, tax withholdings, and superannuation contributions.
On 1 July 2024, the National Minimum Wage rose to $915.90 per week or $24.10 per hour. Award minimum wages increased by 3.75%.
What You Need to Do:
- Update Payroll Systems: Ensure your payroll software reflects the new wage rates.
- Communicate with Employees: Inform employees about the changes to their pay.
- Review Employment Contracts: Check if contracts need updating for salaries above the minimum wage.
2. Changes to Car Thresholds
The Australian Taxation Office (ATO) has adjusted the car cost limit for depreciation to $69,674 for 2024–25. This affects the maximum tax deduction claimable for passenger vehicles.
For the 2024–25 income year, the maximum GST credit claimable is $6,334. The Luxury Car Tax threshold is:
- $91,387 for fuel-efficient vehicles.
- $80,567 for other luxury vehicles.
What You Need to Do:
- Adjust Depreciation Schedules: Update schedules for new vehicles purchased.
- Plan Purchases Strategically: Use the new thresholds to inform your vehicle purchasing decisions.
3. Superannuation Rate Increases
The superannuation contribution rate has increased to 11.5%, aiming for 12% by July 2025.
What You Need to Do:
- Update Payroll Contributions: Adjust payroll settings for the increased rate.
- Employee Communication: Inform employees about the impact on their gross salary and take-home pay.
4. Superannuation Cap Increases
The Australian Government has refined the tax brackets:
What You Need to Do:
- Advise Employees on Contribution Strategies: Help employees adjust their strategies.
- Review Salary Sacrifice Arrangements: Ensure these arrangements maximise the new caps.
5. Tax Bracket Changes
The superannuation caps for concessional and non-concessional contributions have increased. Concessional contributions are now $30,000 per year, and non-concessional contributions are $120,000 per year.
- $0 to $18,200: Nil
- $18,201 – $45,000: 16c for each $1 over $18,200
- $45,001 – $135,000: $4,288 plus 30 cents for each $1 over $45,000
- $135,001 – $190,000: $31,288 plus 37 cents for each $1 over $135,000
- $190,001 and over: $51,638 plus 45 cents for each $1 over $190,000
What You Need to Do:
- Review Tax Liabilities: Assess the impact of tax bracket changes.
- Update Payroll Systems: Incorporate new tax rates.
- Employee Communication: Inform employees about net pay adjustments.
Maintain Compliance for a Prosperous Financial Year
The new financial year brings various changes impacting Australian businesses. Staying prepared ensures compliance and optimises financial strategies.
Actium Partners is dedicated to helping businesses navigate these changes. We offer expert advice and tailored solutions to help your business thrive. Contact us today to learn how we can assist you in adapting to these changes effectively.