From 1 July 2021 there are four significant changes that business-minded people should have prepared for by 30 June 2021 and can still integrate for maximum eligible benefit going forward.
Here are the four key changes to bear in mind as becoming effective from 1 July 2021:
Company tax rate change
The company tax rate changes to 25% for the 2022 financial year. To put this change into perspective for incorporated entities, the company tax rate was 26% in the 2021 financial year, and 27.5% in the 2020 financial year.
Single Touch Payroll (STP) change
Single Touch Payroll for closely held employees starts from 1 July 2021. Employers will need to either find a software solution (eg: Xero) or report their employees’ wages on the quarterly BAS.
Superannuation concessional contribution cap change
From 1 July 2021, the concessional cap for superannuation contributions will increase to $27,500 (from $25,000), and the non-concessional cap will increase to $110,000 (from $100,000).
Superannuation transfer balance cap change
The superannuation transfer balance cap will increase to $1.7million (from $1.6million) from 1 July 2021.