New instant asset write-off thresholds, updated tax rules, increased superannuation payments and a rise in the minimum wage are among changes coming into effect on 1 July, says Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman.
“It is essential that small business owners and managers understand these changes,” Mr Billson said. “They should check their payroll and accounting systems have been updated and they should talk to trusted advisers like accountants and bookkeepers. It is important to get this right.
“With so many pressures on busy small business leaders as we near the end of the financial year it can be easy to overlook new and changing rules. However, there are significant changes that cannot be put aside.
“The end of the financial year is also a good time to not just have a stocktake but to take stock of the health of your business and yourself and to make use of the many helpful resources, tools and checklists available, including on our website www.asbfeo.gov.au.”
Below, is a list of just some of the changes. It is not a complete list and some changes that may affect a business are specific to industry sectors or states.
Instant asset write-off
The instant asset write-off threshold will be $20,000 on a per asset basis for 12 months from 1 July for eligible small businesses with a turnover up to $10 million.
It will replace the previous arrangement introduced during the COVID pandemic which expires on 30 June and provided a write-off of eligible assets costing up to $150,000 that were first used or installed ready for use between March 2020 and 30 June 2023.
From 1 July, assets valued at more than $20,000 (which cannot be immediately deducted) can be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.
Small businesses have until 30 June to use the 20% tax deduction for investing in digital operations such as new equipment like technology, cloud-computing, eInvoicing or cyber security. The technology investment boost will apply to investments made between 29 March 2022 and 30 June 2023 but to be eligible the item must be first used or installed ready for use by 30 June. F
