What changed on 1 July 2023

Here are some of the key changes on 1 July 2023 that you need to be aware of to kick off the New Financial Year...

Employers & business
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• 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 $760,000 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’s will apply to your energy bills if you meet the criteria.

Superannuation

• Superannuation guarantee increases to 11% from 10.5%.
• 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
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• 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 from 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.
• The age to access the age pension increased to 67 years of age.

Contact us if you need any help or guidance on learning about these changes.