As the financial year draws to a close, there are some changes worth highlighting which are likely relevant for a number of clients.
Compulsory Superannuation Rate Increases
The superannuation guarantee rate will increase to 10% from July 1, 2021 and rise by 0.5 per cent per year thereafter until it reaches 12 per cent by 2025.
- 2021-22: 10%
- 2022-23: 10.5%
- 2023-24: 11%
- 2024-25: 11.5%
- 2025-2026: 12%
Instant Asset Write-Off
Over recent Budgets the Government has offered a number of increasingly favourable incentives to allow the write-off of new and second-hand assets for most Australian businesses. The Treasurer announced in May that these incentives were being extended until 30 June 2023.
Businesses now eligible for this incentive are those with annual turnover of up to $5 billion – effectively the vast majority of Australian enterprises. The cap on value of the asset at $150,000 was removed in the May budget so there is no cost limit on an asset write-off for new equipment. Businesses with a turnover of up to $50 million can also write-off second-hand equipment purchased in this extended period to 30 June 2023.
These are hugely favourable measures designed to boost business spending and stimulate the economy, which is rebounding from the impact of Covid, at a rate not even anticipated by the most optimistic business observer.
As always, our team is here to support you and your business. If you have questions, please make contact with us by phone on (02) 9908 9888 or by email.