Get ready for the new financial year
The countdown to 30 June has begun. The Federal Government confirmed that the $1,080 low and middle income tax offset will be extended to the year ending 30 June 2021. Eligible taxpayers must lodge their 2021 return to claim the rebate. You can lodge your 2021 tax return after 1 July 2021.
As usual, the new financial year brings new tax rules. Some of the big changes that take place on 1 July include:
1. Increase to the superannuation guarantee contribution rate.
The minimum super contribution rate will increase from 9.5% to 10%. Clients who charge out labour should review their rates and factor this increase into their rates going forward.
2. Increase to the concessional and non-concessional superannuation caps.
The annual concessional or tax deductible cap goes from $25,000 to $27,500. Depending on your total superannuation balance your non-concessional annual cap may increase from $100,000 to $110,000.
3. Single touch payroll (STP) reporting
Most businesses have been reporting their wages through STP for two years. The exemptions for micro and family employers run out on 30 June and from 1 July all employers will need to report wages through STP.