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Are you aware of these new changes that can impact you financially?

Are you aware of these new changes that can impact you financially?

As the financial year for 2019 has drawn to a close, there are a whole range of changes that you need to know about that have started impacting you since July 1.

Small business write-off has lifted

The instant asset write-off has jumped from $25,000 to $30,000 for small businesses which aims to give a much-needed boost to the books.

“As we get towards the end of the financial year, now is a good time to do some last-minute planning,” H&R tax expert Mark Chapman told news.com.au.

“It’s a really good time for a cash flow perspective to take advantage of that,” he said.

“It’s a real win for small businesses because if you’re buying tax-deductible office equipment, computers, laptops, tools, or even motor vehicles and utes, you write off the cost completely against your tax.”

Inactive superannuation accounts have closed

If your life insurance is wrapped in your old super account, you might want to pay attention. Super accounts that have been inactive for 16 months have their default life cover switched off.

If you have multiple superannuation accounts, the one that is most active will have life insurance attached to it.

With more than 50 percent of Australians being unaware of the changes, it’s not looking good for those who are unaware.

“This legislation has been introduced for very good reasons,” Association of Superannuation Funds for Australia (ASFA) chief executive Martin Fahy said.

“However, the time frame for implementation has meant it has been challenging for superannuation funds to engage their members to ensure they understand the consequences of the changes in just a few short months.”

Other superannuation changes

Superannuation is getting an overhaul in the new financial year, with a variety of changes which include:

  • Low balance accounts with less than $6,000 will have fees capped at 3 per cent to avoid accounts being gouged by fees
  • All super fund exit fees will be banned
  • Those who have retired or are aged between 65 and 74 can make voluntary superannuation contributions if their super balance is under $300,000 

Luxury car owners tax

Cars valued at $100,000 and $150,00 will be charged a duty of $14 per $200 of market value in Victoria.
For cars that are worth more than $150,000, a duty of $18 per $200 of market value will be charged.

Low emission cars and farming vehicles are exempt from these charges. 

Increase to minimum wage

The minimum wage will increase by 3 per cent to $740.80 per week or $19.49 an hour for the first full pay period starting on or after July 1.