Changes for Business Owners 1 July
There have been important Government changes that have come into effect from 1 July 2018 including changes to minimum wage, payroll tax and long service leave.
Please take the time to ensure your business is compliant.
- Minimum wage increases by 3.5%
An increase of 3.5% to the national minimum wage is payable from the first full pay period on or after 1 July 2018.
Payroll Tax Changes
- The Victorian payroll tax threshold increases to $650,000
The threshold has been progressively increasing from $550,000 in 2015-16, to $625,000 in 2017-18. From 1 July it is $650,000.
- The regional payroll tax threshold falls to 2.425%
From 1 July 2018, employers based in regional Victoria and paying at least 85% of their Victorian taxable wages to regional employees will benefit from a new lower payroll tax rate of 2.425%.
Changes to Long Service Leave
- Changes to long-service leave come into effect on 1 October 2018
Employees will be entitled to take long service leave at seven years of continuous service. All paid leave, any period of unpaid leave up to 12 months, will count as service.
Single Touch Payroll Reporting Obligations
- Single Touch Payroll comes into effect
Single Touch Payroll becomes mandatory for businesses with 20 employees or more. Small businesses have until July 2019 to get ready for the change.
If you need clarification on any of these changes, please contact the PRA Accounting team. Tel: 5221 7655