New charges for new financial year

The start of the 2022-23 financial year also ushers in a raft of new costs for businesses with wages, superannuation and energy prices rising from today, July 1.

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Here’s what you need to know:

Wages

From today, July 1, the national minimum wage rises 5.2 per cent, from $20.33 an hour to $21.38 an hour, equating to an extra $40 a week.

The Award wage also increases 4.6 per cent. Those who earn more than $869.60 a week will receive a 4.6 per cent increase, while those earning less will get $40 more a week. The increases for the aviation, hospitality and tourism industry Awards are delayed until October 1 due to COVID-19 impacts.

Superannuation

From today, July 1, the superannuation guarantee (SG) will rise to 10.5 per cent (from 10 per cent). The SG will keep increasing by 0.5 per cent every year until it reaches 12 per cent on 1 July 2027.

The $450 superannuation eligibility threshold is also removed. Where previously those who earned less than $450 a month weren’t entitled to superannuation payments, employers will have to pay superannuation regardless of how much they earn that month.

Business names

Business name costs will increase on July 1.

The fee to apply to register an Australian proprietary company will increase to $538 from $512.

The cost of reserving a company name will increase from $52 to $55.

Those registering or renewing a business name for 12 months will pay $39 from July 1 (up from $37), while those registering or renewing a business name for three years will pay $92 (up from $88).

Annual review fees will also increase slightly, as will late payment fees depending on their lateness.

More detail can be found via ASIC.

Energy

Electricity bills will increase from today, July 1. The price cap on retailers, known as the default market offer (DMO), will increase in Victoria by about 5 per cent for residential and small business owners.

It will partially be offset by the $250 Power Saving Bonus. Victorians can claim a $250 rebate by looking for a better energy deal on Victoria’s Energy Compare website.

Businesses can also access the Victorian Energy Upgrades incentives for low-cost-to-free energy efficient products such as door and window sealing, efficient hot water and heating systems, and in-home displays for real-time energy usage data. Solar Victoria also offers households and businesses discounted solar panels, batteries and efficient heating and cooling.

Tax guidance

The Australian Taxation Office (ATO) revealed its key areas of scrutiny for small business tax returns for 2021–22. These will be:

  • deductions that are private in nature and not related to business income, as well as overclaiming of business expenses (especially for taxpayers running a home-based business)
  • omission of business income, for example income from the sharing economy or new business ventures
  • record keeping – including insufficient or non-existent records that are needed to substantiate claims.

The ATO also released a tax time toolkit to help small businesses and their tax professionals with their obligations, which can be found here.

Other proposed changes

  • Significant changes to OHS Regulations to include psychological health were expected on July 1, but are now likely to come later in the year. Psychological health regulations will require employers to proactively manage psychological workplace risks.
  • The Federal Government made a commitment to implement Respect@Work Report recommendations which will include an obligation to prevent workplace sexual harassment, and expand the Australian Human Rights Commission’s power to monitor and enforce the positive duty on businesses.
  • Proposed amendments to the Privacy Act may directly impact small business. Currently the Privacy Act does not apply to small businesses with an annual turnover of less than $3 million or employee records held by organisations but a review will examine whether the exemptions should continue to exist in their current form.

More information

The Victorian Chamber’s Workplace Relations Advisors and Consultants are available and on hand to answer any question you may have about your workplace obligations. Members can call on (03) 8662 5222.

It’s been a tough year for business. The Victorian Chamber knows finding assistance and grants can be complex and time-consuming, which is why we offer members complimentary access to the Victorian Chamber Grant Finder. Explore hundreds of business grants and unlock your share of government investment in your business by clicking here.

New Memberships for wherever you are in business

Hard times. Good times. Crunch time. Growth time. We’re here to support you at all those pivotal times in your business life. We’ve now tailored our range of memberships to fit wherever you are in business – today and well into the future.

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