New financial year, new dates and thresholds from the ATO and Fair Work Australia

With a new Financial Year comes inevitable new deadlines and thresholds for the 23 tax year. As a customer of Viridity, we have you covered, but it’s important you’re aware of important dates and threshold details. We’ve prepared a summary for you below.

Payroll Key Rates and Thresholds

Fair Work Minimum Wage and Award Pay Conditions from 1 July 2022

  • The National Minimum Wage has increased by $40 per week, which amounts to an increase of 5.2%
  • Award minimum wages will increase by 4.6%, which are subject to a minimum increase for adult award classifications of $40 per week and based on a 38-hour week for a full-time employee.

Other award wages, including junior, apprentice and supported wages based on adult minimum wages, will get a proportionate increase.

These pay rate increases follow the Fair Work Commission (FWC) Annual Wage Review 2021-22 external-icon.png`.

Superannuation  Key Rates and Thresholds

The Superannuation Contribution Guarantee has increased to 10.5% of Ordinary Time Earnings.

The minimum monthly threshold of $450 per month has been removed as of 1st July 2022.

The quarterly superannuation maximum contribution cap has increased for FY 2023 to $60,220 wages per quarter (allowing a maximum amount of Quarterly Superannuation Guarantee Contribution of $6,323.10).

The annual Concessional Contribution remains at $27,500 per annum with the ability to carry forward unpaid contributions for a 5 year period. The Annual Non-Concessional Contribution cap will, however, remain at $110,000.

ATO – Superannuation Key Rates and Thresholds

Payroll Tax Rates and Thresholds

Payroll tax is calculated based on the amount of wages an employer pays every month. These wages include employee salaries, payments to contractors and the remuneration for directors and management. Superannuation, allowances, fringe benefits, bonuses, commissions and employee termination payments are also included.

Every state or territory in Australia has payroll tax legislation and the tax is payable directly to the state or territory revenue office. However, the rates and thresholds vary between states, as does the registration process.

The applicable Payroll Tax rates and thresholds in Annual Taxable wages for the FY 2023 are as follows:

  • NSW – The Payroll Tax rate is set to increase to 5.45% whilst the annual threshold is unchanged at $1.2 million;
  • QLD – The Payroll Tax rate remains unchanged from 4.75% to 4.95% with an annual threshold of $1.3 million;
  • VIC – The Payroll Tax rate remains unchanged at 4.85% or 2.425% (applicable to regional employers) with an annual threshold of $2 million;
  • ACT – The Payroll Tax rate remains unchanged at 6.85% with an annual threshold of $2 million;
  • SA – The Payroll Tax rate remains unchanged at a maximum of 4.95% with an annual threshold of $1.5 million;
  • TAS – The Payroll Tax rate remains unchanged at 6.1% with an annual threshold of $2 million;
  • WA – The Payroll Tax rate remains unchanged at 5.5% with an annual threshold of $1 million;
  • NT – The Payroll Tax rate remains unchanged at 5.50% with an annual threshold of $1.5 million.

Instant Asset Write-Off

There haven’t been any formal updates for Instant Asset Write-Off. For assets first used or installed ready for use between 12 March 2020 until 30 June 2021, and purchased by 31 December 2020, the instant asset write-off:

  • The threshold amount for each asset is $150,000
  • Eligibility extends to businesses with an aggregated turnover of less than $500 million.
  • If you are a small business, you need to apply the simplified depreciation rules to claim the instant asset write-off. It cannot be used for assets that are excluded from those rules.

ATO – Instant Asset Write-Off

If you’ve any questions about this, please reach out to the team. We’re only too happy to answer any of your questions.

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