Business

Small business owners need to be aware of the laws that changed on July 1.

0

Higher wages and higher power bills: The new financial year is quickly approaching. It marks the start of new rules and schemes and the end of others.

These changes will be difficult for small business owners in Australia. They will also have to deal with rising interest rates, soaring inflation, and many other issues.

The Dine & Discover program in NSW will end after two years. However, WA and ACT businesses will continue to reduce single-use plastic.

Here are some changes that will affect small businesses starting July 1.

The national minimum wage increases by 5.2%

Around 200,000 Australians who earn the national minimum wage will receive a 5.2 percent increase in their wages, from $20.33 an hr to $21.38 an hr, which amounts to an additional $40 per week.

Employer groups, who prefer a rise of around 2-3%, aren’t fans. They argue that the increase will be “difficult to absorb,” put jobs at risk and “tip some companies over the edge.”

You should be aware that the new pay rate will apply to the first pay cycle that begins after July 1. If you are paid Mondays, the new pay rate will start on Monday, July 4.

Increases in the minimum wage

Some 2.7 million Australians are eligible for a modern award. This will increase by 4.6%. The increase will be 4.6 percent for those who earn more than $869.60 per week and $40 more for those who earn less.

Instead, those covered by the aviation, hospitality, or tourism awards will see their salaries increase starting October 1.

The energy prices will rise.

It’s coming. Electricity bills will go up starting July 1. Residents and small businesses in NSW, Victoria, and South-east Queensland will see the default market offer (DMO) rise. This is the price cap that AER uses to stop power companies from charging anything they want.

Small businesses could pay between $270 to $1146 more per year, depending on their location. This will impact businesses from CBD-based barbers and dairy farmers.

The price of the new DMO will depend on which electricity distributor delivers power. Here is a breakdown of the AER. Victorians should refer to the Victorian Default Offer, which has been increasing by 5% since July 1.

You should be aware of these facts: It is worth looking around to find a better deal. Experts believe power bills could be the largest increase in small business expenses this year.

The superannuation rate will increase to 10.5%

Starting July 1, the superannuation guarantee, or the minimum superannuation rate employers must pay their employees, will increase from 10% to 10.5 percent.

Since its inception, the SG has been increasing steadily for a few decades. It will continue to rise by 0.5% every year until it reaches 12 percent on July 1, 2027.

You should know that the SG is usually paid on top of your base salary. However, those on superannuation-inclusive salary packages will see their take-home pay decrease slightly as the money is being diverted to nest eggs instead of bank accounts.

Eliminated the $450 threshold for superannuation eligibility

Up to now, people who earn less than $450 per month were not entitled to superannuation benefits from their employers.

This ceiling will be lifted starting July 1, meaning employers must pay superannuation regardless of how much they earn in the month.

Important information: This rule applies only to adults. Employees who work less than 30 hours per week will not be eligible for superannuation.

Increased business name fees

Registering your first business? How to reserve a business name Do you need to deregister your business? These fees are increasing. Australian Securities and Investments Commission, a financial services watchdog, raises business name fees yearly in line with inflation. Here is the breakdown of ASIC.

These are just a few of the other changes that will be made in your state:

NSW

The Dine & Discover program was established to help small businesses emerge from lockdowns.

No doubt, residents are running to restaurants, cafes, and cinemas to redeem their vouchers before Friday’s deadline. It has been reported that more than $300 million has been unused. This has raised questions about the economic impact of the scheme.

Queensland

The new Small Business Support and Wellness Package program will be available starting in July. It will link operators with local wellness coaches to help them solve their individual and business problems.

Western Australia

The ban on single-use plastics goes into effect. Plastic shopping bags can now be supplied only by small businesses.

These items were banned at the start of the year. However, WA will begin enforcing the ban starting July 1.

From October 1, single-use plastic cups are prohibited.

ACT

Single-use plastic straws, plastic buds with sticks, and plastic products made from oxo-degradable plastic will all be prohibited. This is in addition to Canberra’s existing ban on single-use plastic straws, drink stirrers, and foam takeaway boxes.

Brian Santiago

Are You Going to Need a Business Plan?

Previous article

4 Reasons To Get a Science Degree

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Business