Author: Sue-Ellen Lay, Transactional Services Supervisor Date Posted: 1 June 2015
It’s a confusing time for small business owners. There’s lots of information in the media about changes to minimum wage and income tax rates (which were going to change but are now on hold thanks to repeal of the Carbon Tax).
It’s a confusing time for small business owners. There’s lots of information in the media about changes to minimum wage and income tax rates (which were going to change but are now on hold thanks to repeal of the Carbon Tax).
Here’s Consolid8’s summary of what small business owners need to know about 2015/2016 financial year
1. Changes to minimum wage:
The minimum wage will increase by 2.5% (or $16) to $656.90 per week from July 1. That means anyone paying someone on the minimum base rate of $16.87 per hour, will now be required to pay $17.29 per hour from July 1. Business owners need to be ready to increase wage from the very first pay packet after June 30.
2. No change to income tax rates:
The federal government was going to change Income Tax Rates but this were based on a carbon tax being introduced. As this tax has been repelled the tax breaks are no longer applicable, so there is no change to income tax rates.
Taxable Income 2016 | Tax Payable 2016 |
---|---|
$0 – $18,200 | Nil |
$18,201 – $37,000 | 19% of excess over $18,200 |
$37,001 – $80,000 | $3,572 + 32.5% of excess over $37,000 |
$80,001 – $180,000 | $17,534 + 37% of excess over $80,000 |
$180,001+ | $54,534 + 47% of excess over $180,000 |
3. HELP / SFSS is going to change
Income 2016 | Help Repayment | SSFS Repayment |
---|---|---|
Less than $54,126 | Nil | Nil |
$54,126 – $60,292 | 4% | 2% |
$60,293 – $66,456 | 4.5% | 2% |
$66,457 - $69,949 | 5% | 3% |
$69,950 - $75,190 | 5.5% | 3% |
$75,191 - $81,432 | 6% | 3% |
$81,433 - $85,718 | 6.5% | 3% |
$85,719 - $94,331 | 7% | 3% |
$94,332 - $100,519 | 7.5% | 4% |
$100,520 or more | 8% | 4% |
4. Medicare Levy and the Medicare Levy Surcharge are not going to change
Year | Medicare Levy |
---|---|
2016 | 2% |
2015 | 2% |
2014 | 1.5% |
If you are a Consolid8 payroll client these rates will be updated for you. If you are using cloud accounting software the rates will automatically update to reflect the changes. We advise clients who are using a desktop accounting platform to contact their provider to ensure the rates are correctly updated.
For more information or guidance on the changes to income tax and HELP/SFSS rates, contact Consolid8 on 1300 222 353 or submit a support ticket through our online Help Centre.