We love the Small Business Development Corporation (SBDC), they are full of useful information!
There are a number of key changes taking effect from 1 July 2021 that are likely to have an impact on small business owners in Western Australia.
New minimum wages
The minimum wages for both the federal and state based industrial relations systems will increase by 2.5 per cent from the first pay on or after 1 July 2021. There are some delays to increases in certain industries covered by the Federal system, including retail (from the first pay on or after 1 September 2021) and other awards (from the first pay on or after 1 November 2021).
If your business operates under the federal industrial relations system (covering businesses such as ‘Pty Ltd’ companies), the new national minimum wage will be $772.60 per week or $20.33 per hour. Visit the Fair Work website for more information about the national minimum wage increase.
If your business operates under the WA state industrial relations system (covering sole traders, micro businesses, unincorporated partnerships and unincorporated trust arrangements), the new minimum wage will be $779 per week or $20.50 per hour. For any questions about wages under the WA industrial relations system, contact Wageline.
Super guarantee increase
The superannuation guarantee will increase from 9.5 per cent to 10 per cent. This change is part of incremental increases that will see the SG rate increase by 0.5 per cent annually until it reaches 12 per cent on 1 July 2025.
Single Touch Payroll (STP) reporting changes
STP reporting is now a requirement for small businesses with closely held payees and micro employers that had completing quarterly STP reporting. Find out more about the STP reporting changes.
Updated Franchising Code
Many changes to the Franchising Code commence on 1 July 2021, including those relating to franchisee protections and the disclosure obligations of franchisors. Visit the ACCC website for information and fact sheets on the amended Code.
New Fitness Code
If you run a business in the fitness industry, a new Fitness Code is now in effect. The code has been developed to make sure there are appropriate standards of service, to encourage consumer confidence, and to support and promote the fitness industry.
Location allowance increase for regional employees
If you have employees in certain regional towns, you may be required to pay a location allowance. Visit the Wageline website for information on the new rates for each town and details of the wage awards this allowance applies to.
Other changes of note
The base rate for company tax will be reduced from 26 per cent to 25 per cent for the 2021-22 financial year.
The excise remission scheme for alcohol manufacturers will provide brewers and distillers with a full remission of any excise they pay, up to an annual cap of $350,000.
For more information follow THIS LINK to the SBDC website.