1 JULY 2017 CHANGES

Posted by on Jul 18, 2017 in financial year, Tax

1 JULY CHANGES

Happy New Financial Year!
The following tax changes commence 1 July 2017 and may impact you or your clients:
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.