Sky Update – June 2022
RBA INTEREST RATE DECISION
On the 7th of June the Reserve Bank of Australia (RBA) made the decision to raise the cash target rate by 50 basis points following an earlier decision in May to increase the cash target rate by 25 basis points.
The RBA has stated that they expect inflation to continue to rise throughout the remainder of 2022 before easing to the 2%-3% range next year.
Whilst interests remain historically quite low, borrowers should be budgeting for further increases as the RBA seeks to rein in escalating inflation.
Borrowers should also consider reviewing their loan facilities to ensure that they are paying a competitive interest rate.
If you are wanting assistance to review your loan facilities, please get in touch.
FAIR WORK ANNUAL WAGE REVIEW
The Fair Work Commission (FWC) has completed the Annual Wage Review and has announced that:
- The National Minimum Wage will increase by 5.2% ($40 per week); and
- Award minimum wages will increase by 4.6%.
The increases apply from the first full pay period on or after the 1st of July.
The Fair Work Ombudsman (FWO) is currently working to update their pay tools (incl. pay guides) to reflect this announcement.
Employers should keep an eye on the FWO website for the updated pay tools to ensure that the applicable increases can be implemented in due course.
We note that the increases for several awards (eg hospitality & tourism awards) have been deferred to the 1st of October. For a full list of these awards, please click on the link.
If you need assistance to understand how the FWC Annual Wage Review applies to your business and the actions required, please get in touch.
SUPERANNUATION CHANGES FROM 1 JULY
Last month we wrote about the impending superannuation changes from the first of July this year.
With that start date now just days away, we take this opportunity to remind readers of the following changes:
- Removal of the monthly $450 minimum threshold for mandatory employee super contributions;
- Removal of the work test for salary sacrifice and non-concessional (non-deductible) personal contributions made by those aged between 67 and 75;
- A drop in the eligibility age for Downsizer Contributions from 65 to 60;
- An increase in the limit on the amount that can be released from super under the First Home Super Saver Scheme from $30,000 to $50,000; and
- An increase in the superannuation guarantee rate from 10% to 10.5%.
Employers should be checking their payroll systems and preparing to implement the changes from the 1st of July.
If you need assistance with any of the changes, please get in touch.
WAR, INFLATION, RISING INTEREST RATES – AN ECONOMIC UPDATE BY SKY WEALTH
June has been a tumultuous time for both the domestic economy and global markets.
We have seen big share market losses, superannuation balances declining, crypto currency taking a battering and predictions of falling property prices.
These events have left many worried about what the future may hold and the impact on their investments and retirement savings.
To help you make heads and tails of what is happening, we are organising an online briefing from Patrick Quigley, Head of Sky Wealth.
Further details of the briefing will be issued shortly. In the meantime, please get in touch if you would like to register your interest, or to talk to Patrick about how he can assist you with your investments and/or superannuation.
ATO’S FOUR TAX-TIME PRIORITIES
With EOFY almost here, many will be thinking about getting organised to lodge their 2021/22 income tax return. Particularly given that the increase in the LMITO announced in the recent Federal Budget will see many receive any extra $420 in their tax refunds.
The ATO have announced that they will commence processing 2021/22 income tax returns from the 7th of July with the first refunds anticipated to issue on the 16th of July.
They have also urged people to not be too quick off the blocks in lodging their tax return, noting that it takes time for the necessary information to filter through. Eg. employers have to the 14th of July to finalise Income Statements for employees.
Additionally, four key areas will be in the ATO’s focus when processing personal tax returns this tax-time. Those areas being:
- Record keeping obligations;
- Work-related tax deductions;
- Rental property income and deductions; and
- Capital Gains on crypto currency, property and shares.
If you need assistance to get the best tax outcomes whilst ensuring that you “swim between the flags”, please get in touch.
NEW DOMAIN NAME CHANGES
Since the 24th of March 2022, anyone with a local connection to Australia can register a new category of domain name that ends in ‘.au’.
All Australian businesses have a window of opportunity that closes on the 20th of September to register their .au equivalent domain name. After the 20th of September, the .au domain name will become available to the general public.
It is recommended that businesses take action now to register their .au domain names to ensure that they are protected against cyber squatting.
Businesses can register their .au domain name through an auDA accredited registrar.
If you need assistance with the new .au category and what actions are required, please get in touch for a referral to a quality IT professional.
QUOTE OF THE MONTH
If you are looking for some good practical advice, then look no further than the renowned crime fiction author, Agatha Christie, who said “the secret to getting ahead is getting started”.
As an author who wrote 66 novels and has sold more than 2 billion copies, we think she is definitely worth paying attention to.
In our line of work, we see so many passionate people with good ideas. The problem is that too many fail to reach their potential simply because they can’t manage to “get started” as Agatha puts it.
From our perspective, there is nothing better than seeing someone with a good idea taking a chance and working hard to make their vision a reality.
With that in mind, we pose the question – is there something that you really want to do that you just need to make a start on?
Sky Accountants Ballarat
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437