What changed on 1 July 2023

Employers & business

• Superannuation guarantee increases to 11% from 10.5%
• National and Award minimum wage increases take effect.
• The minimum salary that must be paid to a sponsored employee – the Temporary Skilled Migration Income Threshold – increased to $70,000 from $53,900.
• Work restrictions for student visa holders reintroduced to 48 hours per fortnight.
• The cap on claims via the small claims court procedures for workers to recover unpaid work entitlements increases from $20,000 to $100,000.
• Energy Bill Relief Fund for small business kicks in – it will apply to your energy bills if you meet the criteria.
• Sharing economy reporting to the ATO commences for electronic distribution platforms.

Superannuation

• Superannuation guarantee increases to 11%
• Indexation increases the general transfer balance cap to $1.9 million.
• Minimum pension amounts for super income streams return to default rates.
• SMSF transfer balance event reporting moves from annual to quarterly for all funds.

For you and your family

• The new 67 cent fixed rate method for working from home deductions – make sure you have a record of when you work from home. The ATO won’t accept a simple “I work from home every Wednesday” x 8 hours calculation.
• Access to the first home loan guarantee expands to “friends, siblings, and other family members.”
• The Medicare low income threshold has increased for 2022-23.
• The child care subsidy will increase from 10 July 2023 for families with household income under $530,000. See the Services Australia website for details.
• New parents able to claim up to 20 weeks paid parental leave.
• Access the age pension increased to 67 years of age.

If you have any queries regarding any of the above information, please don’t hesitate to contact our team.