August 2015 Edition

In this edition:

Welcome

Key changes for businesses starting on 1 July 2015

Fuel Tax Credits - from 1 July and further changes from 1 August 2015

Individuals and Deductions - ATO myDeductions tool

MyGov - ATO linking warning

Introducing Jane Gao

Key changes for businesses

Starting 1 July 2015

Below is a list of changes which take effect from 1 July that all business owners should be aware of.

2.5% increase to the minimum wage
From 1 July, the national minimum wage will be increased to $656.90 per week, or $17.29 per hour. This 2.5% wage increase applies to employees who are paid rates from

• the national minimum wage
• a modern award
• certain registered agreements

Extra pay period in the 2015/16 financial year
For the 2015/16 financial year there is an extra pay period. If you pay your employees

• fortnightly – they will have 27 pay days for the year instead of the usual 26
• weekly – they will have 53 pay days for the year instead of the usual 52

This means that employees who usually expect to receive a tax refund may find that they owe money due to the extra pay period and not enough tax being withheld.

For the employees that you withhold tax for (through Pay As You Go Withholding (PAYGW)), it is a good idea to provide them with the option of withholding additional amounts from their pay to avoid the possible debt.

To find out more and to review the PAYGW tables check the ATO website.

Changes to tax for small business

The government has introduced legislation for the following small business measures that if passed, will apply from 1 July 2015. These measures are available for small businesses with an annual turnover of less than $2 million, and include:

• Reducing the income tax rate to 28.5% from 30%
• A tax offset to individuals who run small businesses or who have a share of a small business' income included in their assessable income. The tax offset is available to individuals, partners, or beneficiaries of a trust that is a small business entity. The tax offset is 5% of the income tax payable on the portion of an individual's income that is small business income capped at $1,000 per annum.
• Immediate depreciation of any eligible assets that cost less than $20,000 (from 12 May 2015)
• Immediate deduction of professional costs related to starting a small business in the year they are incurred rather than over five years

Visit the ATO website for the latest details.

SuperStream begins for small business
From 1 July 2015, eligibility for the Small Business Superannuation Clearing House will be changed to include businesses which have an annual aggregated turnover of $2 million or less. The Clearing House will assist you to meet your business's super obligations will also ensure that your business is SuperStream compliant.

SuperStream will start on 1 July 2015 for businesses with 19 or fewer employees and those businesses must be SuperStream compliant by 30 June 2016.

For businesses with 20 or more employees, your business needed to be SuperStream compliant by 30 June 2015. If your business is not compliant, you must be able to demonstrate that you have a plan in place for your business to be compliant by 31 October 2015.

Learn more about SuperStream from the Australian Taxation Office (ATO) website.

For any queries on the above please contact our office on 02 9899 3044.