July 1 saw the introduction of a number of government policies that will impact your business overheads. We can help you understand how they may affect your costs, cashflow and current pricing. In the meantime, here’s what you need to know:
Impact 1: Energy rebates for small business
If your business uses less than 100 megawatt hours of electricity each year, you will receive a one-off $650 bill relief payment. However, if you run your business from home, you won’t be eligible. Service NSW says more information on the energy rebate scheme for small business will be available in October.
Impact 2: Wage and super increases
- Staff super guarantee contributions have increased to 11% (an increase of 0.5%). Your first staff super payment with this increase included is due for lodgement in September.
- If you pay the minimum wage to any staff, their pre-tax pay has increased to $882.80pw or $23.23ph. If your staff are on a modern award or are paid above minimum wage, this increase may not affect you. We strongly recommend you check your staff employment contracts or seek expert advice from an HR consultant.
The staff wage increases begin from the first full pay period after July 1 so if your pay period began on Monday 3 July, the new rate will apply.
Impact 3: Paid parental leave increased
Paid Parental Leave entitlements have increased to 20 weeks. (They were 18 weeks.)
Impact 4: Migrant Workers
If you have staff on the Temporary Skilled Migration Scheme, their income threshold has now increased to $70,000, up from $ 53,900.
Understanding your costs has never been more important
There are significant financial pressures on businesses and families at the moment. This makes it important to understand your costs and how it may impact your pricing and sales targets. Let us help and guide you. Get in touch today.
