Navigating EOFY Changes: What Small Businesses Need to Know

Discover crucial EOFY updates every small business owner must know for seamless operations and financial success.

The countdown to the new financial year is on, and with it comes a range of significant changes that will impact small businesses. From tax updates to incentives and increased penalties, being aware of these changes is crucial for navigating the business landscape effectively. Here are 11 key changes that small businesses should know before July 1, 2024:

Instant Asset Write-off

The continuation of the instant asset write-off scheme allows small businesses to claim instant tax deductions on eligible purchases up to $20,000, with specific timelines for installations and use. It is yet to become law, although the Coalition recently signalled it will ultimately support the government’s $20,000 plan. The federal government has committed to an identical extension for the 2024-2025 financial year.

Minimum Wage Increase

The National Minimum Wage is set to rise by 3.75% to $24.10 per hour, impacting workers not subject to awards or agreements.

Energy Rebate

Eligible small businesses will receive $325 in energy bill rebates, with some states matching the funding. Check with each state government department for the applicable rate being paid.

Superannuation Guarantee Rate Lift

The Superannuation Guarantee rate will increase from 11% to 11.5%. Bigger changes are coming: the rate will increase again to 12% on July 1, 2025, before payday superannuation, requiring employers to make superannuation contributions whenever they pay an employee, comes into effect on July 1, 2026.

General Interest Charge

The General Interest Charge, applied to late payments to the Australian Taxation Office, will see a marginal increase. The rate will sit at 11.36% per annum for July-September 2024, up from 11.34% the prior quarter.

Penalty Units

The Commonwealth penalty unit will grow, impacting fines levied against taxpayers and businesses from July 1 it will grow from $313 to $330, subject to legislation currently before Parliament.

Company Names and Registration Fees

There will be slight fee increases for company registration-related processes with ASIC.

Environmentally Sustainable Procurement

Certain businesses providing high-value goods and services to the federal government will need to meet new environmental criteria.

Skills and Training Boost and Small Business Energy Incentive

Deadlines for availing incentives and deductions are approaching, so businesses must act quickly as the policy granting an extra 20% deduction on eligible SME expenditure on staff training, is coming to an end.

That means businesses must incur eligible expenditures before the turn of the financial year.

Similarly, assets included under the small business energy incentive scheme –– which provides a bonus 20% deduction on eligible energy-saving upgrades — must be first used or installed by June 30.

Apprenticeship Incentives

Financial incentives for hiring apprentices will change, providing different rates for full-time and part-time apprentices. Phase Two of the scheme was originally slated to provide $4,000 for employers hiring full-time apprentices in Priority List occupations, and support payments of up to $3,000 for full-time apprentices.

The 2024-2025 federal budget states Phase Two will instead provide $5,000 to employers of full-time apprentices, and $5,000 to full-time apprentices. Lower rates apply to part-time apprenticeships.

Engineered Stone Ban

A ban on engineered stone products comes into effect, imposing restrictions on their installation, manufacturing, and processing.

Navigating EOFY changes can be challenging, but with proper preparation and understanding of these updates, small businesses can position themselves for continued success. Stay informed, consult with professionals when needed, and use these changes as opportunities to streamline your business operations and enhance compliance.

Remember, staying proactive now can save you time, money, and stress down the road. Prepare for EOFY changes today to set your small business up for a prosperous future.

Original material sourced from Smart Company www.smartcompany.com.au published and accessed on June 24 2024