• Scorpion Bookkeeping

New financial year tax changes for Australian businesses

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July 1 was the start of a new financial year and a range of new financial laws in Australia. Here are the key changes that will affect the most businesses.

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Superannuation for employees

The compulsory super guarantee has increased to 10% of an employee’s ordinary earnings. It was 9.5% previously. This will be an additional cost for the new financial year that you’ll need to budget for.

It’s also now compulsory to pay the super guarantee to employees who earn less than $450. Previously, employers didn’t have to pay any super for these employees. Again, you’ll need to budget for this additional expense if you have any staff in this category.

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Company tax rate

If your business has a company structure, the company tax rate has dropped to 25% from July 1 for businesses who have an annual turnover less than $50 million. It was previously 26%., so this will be a cost saving for you.

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Low and middle income tax offset

This $1,080 tax offset was due to end on July 1. but it was recently extended for another year. This is good news if you’re a sole trader or a partner in a business. If you earn taxable income between $48,000 and $126,000, you’ll be entitled to it for the financial year just completed, as well as the new one.

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How we can help

Our team at Scorpion Bookkeeping can provide your business with cost-effective bookkeeping support services. We service a diverse range of clients in South Australia, Victoria and New South Wales.

We can also help you to implement cloud-based Xero bookkeeping software to make managing your finances easier. We are a Xero-certified partner.

Contact us today for a free, no-obligation consultation to find out how we can help your business!

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