What changed on 1 July and NSW Floods Government Disaster Recovery Payment

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·         Work-test repealed for those under 75 to make or receive non-concessional or salary sacrifice super contributions (the work test still applies to personal deductible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·         Value of voluntary super contributions that can be withdrawn under the First Home Saver Scheme increased to a total of $50,000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

New South Wales Floods, July 2022 – Disaster Recovery Payment
The Australian Government Disaster Recovery Payment (AGDRP) is a lump sum payment to help you if you’ve been significantly affected by New South Wales floods in July 2022. You must meet eligibility rules to get the Payment.

If you’re eligible you’ll get:

·         $1,000 per adult

·         $400 for each child younger than 16.

There are 3 steps to claim the Australian Government Disaster Recovery Payment. Further information and how to claim can be found here.