Employment and Tax Law Changes for Financial Year 2014/2015

Employment and Tax Law Changes for Financial Year 2014/2015

The financial year beginning in 2014, and ending in 2015, brings some relatively major changes. These relate to minimum wages, tax rates, and thresholds laws around Australia. Below is a summary of the more significant changes, which all employers should pay particular attention to. For some people, action might need to be taken immediately. Others will want to keep an eye on their compliance in the future. Please note that this is not an exhaustive report about all the new changes.

Minimum Wage Changes

The Fair Work Commission’s decision in the annual review in 2014, means that these changes will now take effect. It is a good time for workers to request an annual review for their pay, to make sure that their employers are following the laws regarding minimum wages.

  • Minimum wages in Australian states and territories will go from $622.20 per week, to $640.90. This is the amount for a full time employee, above the age of 18, working 38 hours each week.
  • Modern award rates have gone up by three percent, and this will flow through to annual salaries, as well as minimum hourly wages.
  • The minimum hourly wage in Australia has gone from $16.37 to $16.87 an hour. This equates to 50 cents more an hour.
  • For people employed on a casual basis, the loading on their pay has gone from 24 percent to 25 percent. Casual employees with a modern award rate will still receive a 25 percent loading rate.

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Tax Issues You Need To Watch Out For

Tax Issues You Need To Watch Out For

Have you set up a business and want to know about the tax liabilities you will be responsible for? To assess the exact tax liability you will be held accountable for, you need to know what factor affects your tax the most. The answer is the business structure of your company.

The business structure you choose will make you liable for a set of taxes, which you will need to pay in order to avoid a legal action in court. The tax liabilities for each business structure is different, therefore it is important that you decide very carefully about your business, and know about all the taxes that will be charged to your company as they will need to be paid in time.

You need to have sufficient knowledge about your tax liabilities under the heads of the business structure, and payoff taxes if you want to avoid any tax issues in the future.

Take a look at how some of the business structures are taxed as per the legal statutes of Australian law;

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