The following tax changes commence 1 July 2017 and may impact you or your clients:

Happy New Financial Year!

Income Tax

Deficit Levy to be abolished – thus resulting in a 2% tax cut for individuals with taxable income in excess of $180 000.

Minimum Wage

On 6 June 2017, the Fair Work Commission handed down its annual wage review. The decision varied the following:

  • Minimum wage rates in Modern Awards – increased by 3.3% from first full pay period commencing on or after 1 July 2017 (rounded to the nearest 10 cents)
  • National minimum wage – increased by 3.3% to $694.90 per week, or $18.29 per hour
  • Wages for juniors, apprentices – most rates are expressed as a percentage of nominated adult rate so they receive a proportionate increase to the adult rate
  • Wages for trainees and piece workers – most trainees are covered by the National Training Wage system that is included as a schedule in most awards. National Training Wages will also be increased by 3.3% from the first pay period on or after 1 July 2017. Piece rates will increase in accordance with the relevant provisions in the modern award, pay scale or transitional award.
  • Supported wage system – employees with a disability: these employees are paid a percentage of the relevant adult wage, based on their assessed capacity. The 3.3% increase will also flow through to these employees.

GST

Rental Property Deduction Crackdown

First Home Saver Scheme to Commence

Voluntary super contributions made from 1 July 2017, will be able to be withdrawn as a deposit for a first home. More information.

Superannuation

Single Touch Payroll

Available for some employers