As we say goodbye to the 2021-2022 financial year, it’s time to review the EOFY tax and superannuation changes that were handed down by the government on 29 March, 2022. Some of the changes implemented in the new budget will affect the majority of the population; so it’s important to stay updated to ensure you are fulfilling your tax obligations.

Superannuation Contribution Rising

The Australian Government has announced that businesses will now have to increase the amount of superannuation contributions made to employees. All contributions made from July 1, 2022 will be at the new rate of 10.5% (up from 10%), even if the payment is for work completed before this date. For future tax returns, it’s important to note that this figure has been set to increase every year by 0.5% until it reaches 12% in 2025.

Superannuation Eligibility Changes

In addition to the rate increase, new legislation has also been released affecting the eligibility of superannuation recipients. From July 1, 2022, there will be no minimum age for employees to be entitled to super. In addition to this, although employees under the age of 18 must work a minimum of 30 hours per week to be eligible, individuals over 18 are now entitled to super regardless of how much they earn.

The National Minimum Wage Will Increase

In an effort to combat the soaring costs of living, the Fair Work Commission has announced a welcome increase to the minimum wage. From July 1, 2022 the new National Minimum Wage will rise to $21.38 per hour; an equivalent to $812.60 per week. This is up by 5.2% (or $40 a week) on the previous 2021-2022 financial year of $20.33 per hour (or $772.60 per week).

Covid-19 Test Become Tax Deductible

A notable legislative change made effective from July 1, 2021, is the deductibility of Covid-19 Rapid Antigen Tests (RAT). If they were used to determine whether you could go to or remain at work, RAT tests are eligible for a 32.5% tax deduction. 

To talk to the tax-experts in relation to Business Activity Statements, overdue tax bills or debt negotiation, contact our friendly team at Tax Negotiators here today.