What’s fresh this coming financial new year for small businesses?

Alrighty, there’s some new kids on the block and the score has changed. There’ll be come updates to your admin, compliance, and operations this coming financial year, as well as new opportunities and bonuses.

So, what’s changing from 1 July 2024?

New national minimum wage kicks in

Don’t be caught out by the imminent boost to the National Minimum Wage, and the concurrent boost to minimum modern award pay rates.

As declared by the Fair Work Ombudsman,

“As of 1 July 2024, the National Minimum Wage is $24.10 per hour, or $915.90 per week.”

The message is simple: if you have any staff of minimum wages or modern awards, you need to check every award, update your payroll, and begin paying the new rate from 1 July 2025.

With STP in full tilt, there’s no fudging this one – pay your staff correctly and in full according to the rules set out by the Fair Work Ombudsman.

Hot Tip: Update your payroll software just before 1 July to make sure your next pay run is correct.

Tax cuts for everyone!

For all the sole traders out there, it’s time to rejoice. You’ll be keeping even more of your profits to fund your life and pursue your goals.

Let’s have a look at the new brackets and reduced rates you’ll be enjoying from 1 July this year, as announced in the 2024 Federal Budget:

• The 19% tax rate will be reduced to 16%.
• The 32.5% tax rate will be reduced to 30%.
• The 37% tax threshold will increase from $120,000 to $135,000.
• The 45% tax threshold will increase from $180,000 to $190,000.

Be sure to take note of this and be sure to mke changes to your accounting systems or software to reflect these changes.

These new changes will mean you may not need to set aside as much cash for your tax return each year. Don’t go crazy, as it’s nice to have a buffer zone here, but you may want to readjust how much you’re putting aside.

The $20,000 instant asset write off continues

For another year, you can look forward to instantly writing off your larger business expenses. If you’re eyeing new plant and equipment or other work-related expenses in the 2024/25 financial year, it’s time to act.

There’s no telling when this may come to an end, so if you’re in need of a new piece of equipment for your business, you may want to think about it in the next year.

Having said that, you obviously still need to make sure it’s going to make you money and be a smart investment. It’s not a freebie, so be careful your purchase will contribute to cash flow and that the instant write-off makes sense for your business. Have a chat to a tax advisor if you’re unsure.

Power bill relief to ease the pressure

You can also look forward to, at the very least, some moderate relief to your power bill. For small businesses you’ll receive $325 off power bills through the new financial year. Better yet, you’ll also nab $300 off your home bill as well. Should be a nice little bonus to anticipate.

Changes to super contributions

There will be two notable changes to super in the new financial year. Let’s take a look.

1. The Super Guarantee will increase from 11% to 11.5%. This will continue to increase next year by a further 0.5% increment until it reaches 12%. This means that if you employ staff, be sure to update your payroll software.
2. Your ability to top up your super will be given a shot in the arm from 1 July 2024. From the new financial year, the amount you can now top up increases from $27,500 to $30,000 for concessional super contributions and from $110,000 to $120,000 for non-concessional contributions.

If you’re in a position to pump cash into your super for better returns, less tax, and a more comfortable retirement, the time has come.

Hot Tip: For even more advice on how to prepare for the EOFY and what to expect, we’ve created a comprehensive guide to leave nothing to chance. Download the Reckon EOFY Guide now for free.