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green roadside sign 'change just ahead' Did you know that this 1st of July brings a whole raft of changes to the way small businesses operate? To help you prepare for these changes, we’re sharing with our Digital Ready community some important information put out recently by the NSW Business Chamber.

With the new financial year come compliance changes in workplace relations and taxes. The following are some important reminders that you as a small business owner need to be aware of this coming financial year (2016/2017):

 The minimum wage will increase

  • Wages will rise on July 1 after the Fair Work Commission announced a 2.4 per cent increase in the minimum wage earlier this month.
  • The new national minimum wage will be $672.70 per week or $17.70 per hour.
  • The increase applies to employees that get their pay rates from the national minimum wage, a modern award or in some cases a registered agreement.
  • The Fair Work Commission has adjusted minimum wages across the 122 modern awards in Australia. It is important for all small business owners to factor these changes into your salaries for next year.
  • If you have any employees on the minimum wage these changes need to be applied in the first full pay period on or after July 1st.

Lower taxes and greater access to tax concessions

  • From 2016-17, the Government will extend the unincorporated small business tax discount. The discount will be available to businesses with annual turnover of less than $5 million, up from the current threshold of $2 million, and will be increased to 8 per cent. The maximum discount available will remain at $1,000.

  • From the 1st of July 2016 all businesses with annual turnover of less than $10 million will have access to:

    • simplified depreciation rules, including immediate tax deductibility for asset purchases costing less than $20,000 until 30 June 2017

    • simplified trading stock rules, giving small businesses the option to avoid end of year stock-take if the value of their stock has changed by less than $5,000;

    • a simplified method of paying PAYG installments calculated by the ATO, which removes the risk of under or over estimating PAYG installments and the resulting penalties that may be applied;

    • the option to account for GST on a cash basis and pay GST installments as calculated by the ATO;

    • other tax concessions currently available to small businesses, such as fringe benefits tax (FBT) exemptions (from 1 April 2017 to align with the FBT year); and

    • a trial of simpler business activity statements (BAS), reducing GST compliance costs, with a full roll-out from 1 July 2017.

These threshold changes will not affect eligibility for the small business capital gains tax concessions, which will remain available for businesses with annual turnover of less than $2 million or that satisfy the maximum net asset value test.

In short, the below government benefits will apply to small business for unincorporated businesses with turnover less than $5 million:

circle with words - small business - surrounded by 7 other circles with the main changes
















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