What changed on 1 July?
Aspen Corporate • 7 July 2022
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- Work-test repealed for those under 75 to make or receive non-concessional or salary sacrifice super contributions (the work test still applies to personal deductible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- Value of voluntary super contributions that can be withdrawn under the First Home Saver Scheme increased to a total of $50,000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
Accessing superannuation funds for medical treatment or financial hardship
The Federal Government had a consultation process on supermarket unit pricing. This is not only a consumer issue, but it could have commercial impacts for suppliers
Leaving debts outstanding with the ATO is now more expensive for many taxpayers, as GIC and SIC imposed by the ATO is no longer tax-deductible from 1 July 2025.
A decision by the Administrative Review Tribunal highlights the importance of documentation and evidence when it comes to tax planning and the possible consequences
The Reserve Bank of Australia (RBA) delivered a 25 basis point rate cut, lowering the cash rate from 3.85% to 3.60%, the third reduction this year.
On 1 July 2025 the superannuation guarantee rate increased to 12% which is the final stage of a series of previously legislated increases.
