EOFY 2023

New Financial Year. What businesses need to know.

New Financial Year – what you need to know. 

As we near the end of the financial year, it’s crucial to stay informed about the upcoming changes that will impact businesses. While we regret to inform you that many of these measures will result in increased costs, we believe it is essential to provide you with advanced notice, allowing you to plan and mitigate any potential challenges. Here we highlight the key updates that will come into effect for the new financial year, ensuring you are well-prepared for the road ahead.

Superannuation Guarantee for Employees
From 1st July 2023, the rate of superannuation guarantee for employees increases from 10.5% to 11%. In many cases your bookkeeping software should automatically adjust for this, however we recommend double checking when you prepare the first pay run in July.

Immediate Expensing of Equipment Purchases
Up to 30th June 2023, businesses have been able to claim an immediate tax deduction for depreciable assets. From 1st July 2023 this threshold will be reduced to $20,000 and only applicable to business with turnover less than $10m.

For Victorian employers, there will be a big increase in the annual workcover premium from 1st July 2023. The average workcover premium will increase by 42% to cover cost blowouts in the overall workcover scheme.

Award Wages
Fair Work Australia have increased all award wages from 1st July 2023.  If you employ under an award, rates need to be increased by 5.75%. The full time minimum base wage has increased also to $882.80 or $23.23 per hour.  It is illegal to employ an adult, non apprentice, below this hourly rate.

ASIC Fees For Companies
ASIC have increased their fees by 7% and this will have a flow on effect to all Company Annual fees, business set ups and business name registrations.

Bookkeeping Software
Xero and MYOB have increased their fees also and dependent on the software and plan you should expect an increase in the order of 5 – 10%.

To Do List
With the end of financial year, there are a couple of other housekeeping matters to keep an eye out for.

  • Employers need to make sure the annual Single Touch Payroll confirmation gets done to finalise the wages for the 2022/23 financial year.
  • Larger employers who are registered for payroll tax (in Victoria, over $700,000 payroll), should ensure their annual reconciliation is lodged with the State Revenue Office.

If you have any further queries, please contact your Accountant