The turn of the financial year will bring some notable changes for the nation’s small business sector, spanning from tax updates to apprentice hiring incentives and increased financial penalties.
Here is a brief list of the changes small businesses can expect to face from July 1, 2024.
Small businesses will be free to claim instant tax deductions on eligible purchases up to $20,000, thanks to a continuation of the instant asset write-off scheme.
That threshold will cover purchases made and installed or ready for use between July 1, 2023, and June 30, 2024.
The measure will become law after the Labor government and the Coalition ended a parliamentary dispute over the size of the deduction, in order for the policy to apply for 2023-2024 tax returns.
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.
The National Minimum wage will rise by 3.75% to $24.10 per hour, or $915.91 per week.
That rate applies to workers who are not subject to an award, or a registered agreement.
Employers must ensure workers employed under awards or enterprise agreements earn above the new rate from July 1.
The increase, equivalent to about $33 extra per week, will apply from the first full pay cycle: if your weekly pay run starts on a Tuesday, the new rate will apply from Tuesday, July 2.
Eligible small businesses will receive $325 in energy bill rebates from July 1, in the continuation of a federal government policy.
Some states have agreed to match the funding, promising up to $650 in rebates, but conditions vary between jurisdictions.
You can read more about the policy here.
The Superannuation Guarantee rate will lift 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.
The General Interest Charge, the interest rate applied to many late payments to the Australian Taxation Office, will face a marginal increase on July 1.
The rate will sit at 11.36% per annum for July-September 2024, up from 11.34% the prior quarter.
Penalty units are the ‘building block’ for fines levelled against taxpayers and businesses which commit an offence, or fall too far behind on their tax obligations.
On July 1, the Commonwealth penalty unit will grow from $313 to $330, subject to legislation currently before Parliament.
It will cost slightly more to register a company, reserve a name, or apply for a voluntary deregistration with the Australian Securities and Investments Commission.
A full list of fee changes can be found on the ASIC website.
The Skills and Training Boost, a 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.
More information on the Skills and Training Boost can be found here.
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.
Certain businesses providing high-value goods and services to the federal government will need to meet new climate, environmental, and circularity criteria.
The policy begins on July 1 for construction contracts valued at $7.5 million and above, but will apply to IT, fit-out, and textile providers from July 1, 2025.
Further detail on the policy can be found via the Department of Climate Change, Energy, the Environment and Water.
After short-term reforms intended to shield apprentices and employers through the COVID-19 pandemic, the financial incentives to hire trainees will change from July 1.
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.
Australian Apprenticeships intends to publish full guidelines on July 1.
Australia’s ban on engineered stone begins July 1.
This means businesses will be prohibited from installing, manufacturing, processing or supplying engineered stone products.
This includes benchtops, slabs, and panels.
The ban does not include products that don’t require extra modification, like jewellery, garden ornaments, sculptures, and kitchen sinks.
Businesses will still be free to work on engineered stone products that have already been installed; however, strict safety requirements will be in place.
Employers can find more information via Safe Work Australia.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
