The first day of July 2020 heralds the start of FY20/21 and after a rocky six months for all Australians, there are many important financial changes business owners need to get across.
In this article, we discuss the most substantial legal changes from 1 July impacting businesses of all sizes and industries.
Minimum wage increasing
The minimum wage sees an increase for businesses classed as “group one awards”. The Fair Work Commission (FWC) ruled last month that the minimum wage would increase to $19.84 per hour, or $753.80 a week up from $19.49 an hour or $740.80 a week.
Only some employers must start paying the new rate immediately, under COVID-19 measures outlined by the commission. To find out of if your business falls into the category of businesses paying the increase from today, this article explains what you need to know.
Penalty rates cut
Workers who receive income under the retail and pharmacy awards will be entitled to lower penalty rates. For workers on the retail award, Sunday penalty rates have been cut from a 165% loading to a 150%, while Sunday shift work rates have decreased from 190% to 175%.
Staff on the pharmacy award have had their Sunday penalty rate cut from 165% to 150%. These changes are the last round of changes that arose from the FWC’s decision to cut penalty rates in 2017.
Tax cuts
Businesses earning less than $50 million a year will have their company tax rate sliced by 1.5% on Wednesday, as the federal government’s fast-tracked tax relief for SMEs comes into effect with the new financial year.
Open banking
Australia’s Consumer Data Right (CDR) kicked off on Wednesday with the launch of the so-called “open banking” regime, which requires financial services providers, including banks, to share customer data on request. These reforms will be a source of potential for financial technology companies and are designed to help address information issues in the financial services market.
Consumers will be able to authorise third parties to pull their data from banking institutions so they can canvass better details or provide other market information services.
Other tax stuff
The second instalment of the COVID-19 early access to super scheme is available for those taxpayers opting to draw down on their retirement savings.
The implementation of R&D tax incentive cuts, which have still not passed parliament, also come into effect from 1 July.
Your Arabon accountant is always up to date with changes in the tax and finance industries. If you need to discuss how any of these important financial changes will affect your business, please contact us today on 1300 ARABON or make an appointment online.
