The new financial year has bought with it some tax and legal changes that business owners should be aware of. These include:

An increase to the minimum wage

As of the 1st July, the minimum wage was increased by 2.4% for all Australian employees. This was reflected across all awards and is an expected change for most financial years.

Changes to business structures will not longer incur a capital gains tax

For those small businesses that are eligible, it will now be possible to change the legal structure of the business without a capital gains tax being incurred.

changes in 2016 financial year

Extended period to be SuperStream ready

Originally, the ATO gave all small businesses a deadline of June 30 to be SuperStream compliant, however, they have since extended this deadline to October 28. All businesses will need to be compliant by the 28th of October to avoid “compliance action” by the ATO.

The high-income threshold for unfair dismissal has been increased

The threshold for high-income unfair dismissal has been increased from $136,700 to $138,900. This means the unfair dismissal laws now cover employees who earn above $136,700 and less than $138,900. There have also been changes to the compensation cap for unfair dismissal claims from $68,350 to $69,450.

SMSF rules for collectables and personal use assets have changed

Prior to July 1 2011, self managed super funds with collectibles and personal use assets were exempt from particular storage and insurance requirements. This has now changed.

Make sure you talk to your accountant today to ensure that you are up to date with all of the financial changes that have come into effect this financial year.

Contact BIS Cosgrove today!