Good news for Canberra business and employees. This week sees a number of changes that will be of relief across sectors.

 

 

Payroll Tax
There has been a lift in the threshold for Payroll Tax, meaning that more local operations will be exempt from having to meet its obligations.

 

 

As of 1 July, the threshold will rise from $1.85 million to $2.0 million. In addition, lifting the payroll tax threshold will give a $10,000 a year tax cut to every business with a payroll of over $2.0m. Since 2012, the total amount of tax the ACT Government has removed for a firm with a payroll over $2.0 million is $34,250

 

 

Minimum Wage
Meanwhile, at a Federal level, the minimum wage has passed its annual revue with a recommendation to lift the rate by 2.4% - or $15.80. The upward shift brings the rate per hour to $17.70 and $672.70 per week.

 

 

Besides the usual to-and-fro between the Australian Countil of Trade Unions, Australian Council of Social Services and the Australian Chamber of Commerce and Industry ACCI), it seems the lift may be slightly over the odds. The Wage Price Index rose by 2.0% between March 2015 and 2016, while CPI is sitting about 1.7% year-on-year. ACCI has sought for the shift to be limited to 1.2%