The new financial year is upon us, and for many businesses that will mean making changes to their payroll as a result of legislation coming into force on 1 July 2018.
Keeping track of any changes to payroll legislation and remaining compliant can be a headache – although at E-Payoffice our cloud payroll software and outsourced payroll solutions ensure your payments, calculations and reporting are right, every time.
Here is a quick summary of the key information you will need as we kick off the 2018/2019 financial year:
- For redundancies, the Lump Sum D threshold will increase to $10,399 + $5200 for each completed year of service
- The ETP indexed cap will increase to $205,000 from 1 July 2018
- The Maximum Superannuation Contributions base will increase to $216,120 per annum, which equates to $54,030 per quarter. For any earnings above this quarterly limit, employers do not have to pay SG Contributions
- The Concessional Contributions Cap remains at $25,000 for everyone
- Superannuation Guarantee remains at 9.5%
- Medicare Levy remains at 2%
- The income testing levels for the Private Health Insurance Rebate for this year have remained the same at $90,000 for singles and $180,000 for families
- As in previous years, the cents per kilometre rate remains the same at 68 cents per kilometre. Up to 5,000 business kilometres can be claimed without paying tax. If paying in addition to 5,000 kilometres or more than 68 cents, tax should be withheld from the applicable portion
- From the first full pay period on or after 1st July 2018 there is a 3.5% increase to the minimum wage to $18.93 per hour or $719.20 per week. The 3.5% also applies to all modern awards.
For more information on payroll legislation, or if you have any questions regarding the compliance of your payroll in 2018/2019, contact Wendy at E-Payoffice on 02 8860 9521.