When we said goodbye to the 2023 financial year and 1 July 2023 arrived what did this mean to you? To many it may have meant that the days became longer, the Ashes drama continued to unfold, or that Barbie was about to take over our news feeds and screens. But for us in the accounting and tax world, and for you as business owners and tax payers, there were a few other key changes that took place on 1 July 2023.

Employers & business

• Superannuation guarantee increased to 11% from 10.5%
• National and Award minimum wage increases took 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 48 hours per fortnight.
• The cap on claims via the small claims court procedures for workers to recover unpaid work entitlements increased from $20,000 to $100,000.
• Energy Bill Relief Fund for small business kicked in – it will apply to your energy bills if you meet the criteria.
• Sharing economy reporting to the ATO commenced for electronic distribution platforms.

Superannuation

• Superannuation guarantee increased to 11%
• Indexation increased the general transfer balance cap to $1.9 million.
• Minimum pension amounts for super income streams returned to default rates. 
• SMSF transfer balance event reporting moved from annual to quarterly for all funds. 

For you and your family

• The new 67 cent fixed rate method for working from home deductions commenced – 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 expanded to “friends, siblings, and other family members.”
• The Medicare low income threshold increased for 2022-23.
• The child care subsidy increased from 10 July 2023 for families with household income under $530,000. See the Services Australia website for details.
• New parents were able to claim up to 20 weeks paid parental leave.
• Access to the age pension increased to 67 years of age.

If you would like to discuss how these changes affect you and your business, please get in contact.