What changed on 1 July?

A reminder of what changed on 1 July 2022

Business

·       Superannuation guarantee increased to 10.5%

·       $450 super guarantee threshold removed for employees aged 18 and over

·       Small business GST and PAYG tax instalments lowered (the total tax liability remains the same, just the amount the business needs to pay through the year is lowered)

·       ATO guidance on how profits of professional firms are structured comes into effect introducing new risk criteria

·       New guidance on unpaid trust distributions to corporate beneficiaries comes into effect that may treat some unpaid distributions as loans and trigger tax consequences

Individuals

·       Superannuation guarantee increased to 10.5%

·       Work-test repealed for those under 75 to make or receive non-concessional or salary sacrifice super contributions (the work test still applies to personal deductible contributions)

·       Age for downsizer super contributions reduced to 60 years and older

·       Value of voluntary super contributions that can be withdrawn under the First Home Saver Scheme increased to a total of $50,000

·       New ATO guidelines on trust distributions come into effect primarily impacting distributions to adult children

·       Home loan guarantee scheme extended to 35,000 per year for first home buyers and 5,000 per year for single parents

·       Australia’s minimum wage increased