By Ken McGuire | Treasurer of Highfields Chamber of Commerce
Instant Asset Write-Off: The temporary full expensing of business asset purchases remains in place until 30 June 2023. It allows for an immediate deduction of eligible business assets. If you are intending to purchase an asset before 30 June 2022, please note that the asset must be installed and ready for use prior to this date for the deduction to be available in the 2022 tax year.
Small Business Company Tax Rate: For the current 2022 tax year, the company tax rate for businesses with an annual turnover of less than $50M is 25%.
Tax Treatment of COVID Grants: Some Covid-related grants are classified as non-assessable non-exempt (NANE) income and are not directly taxed. For Queensland businesses, the only Covid grant currently listed as NANE is the 2021 COVID-19 Business Support Grants.
Taxable Payments Annual Report (TPAR): If your business makes payments to contractors or subcontractors, you may need to lodge a Taxable Payments Annual Report (TPAR) by 28 August 2022. A TPAR is an industry-specific report for businesses that are required to report total payments made to contractors or subcontractors for services.
Super Guarantee Changes: The superannuation guarantee percentage will increase from 10% to 10.5% from 1 July 2022. Further increases of 0.5% are scheduled to take place each year until 2025 at which point the superannuation guarantee will reach 12%.
Please ensure that your payroll software is set up to reflect the change to 10.5% on 1 July 2022.
A further superannuation guarantee change that applies from 1 July 2022, is that employers will be required to make super guarantee contributions to their eligible employee’s super fund regardless of how much the employee is paid. Previously a $450 per month threshold was applied so that employees earning under this threshold did not qualify for superannuation guarantee payments. This threshold is abolished from 1 July 2022.
Superannuation Contributions Caps for the year ending 30 June 2022: The concessional contribution cap is $27,500 p.a. The non-concessional cap is $110,000 p.a. and the maximum amount a member can contribute under the non-concessional three-year bring-forward rule is $330,000.
