As we move into the new financial year, there are a number of rate changes that business owners need to be across that commence from 1 July 2022.
Income Tax Rates
Company tax rates for base rate entities are decreasing again in 2022.
| Income Year | Aggregated Turnover Threshold | Tax Rate for Base Rate Entities Under the Threshold | Tax Rate for All Other Companies |
| 2017 & 2018 | $25m | 27.5% | 30% |
| 2019 & 2020 | $50m | 27.5% | 30% |
| 2021 | $50m | 26% | 30% |
| 2022 and beyond | $50m | 25% | 30% |
Individual tax rates remain unchanged from 2021. Resident tax rates are shown below.
| Taxable Income | Tax on This Income |
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 19c for each $1 over $18,200 |
| $45,001 – $120,000 | $5092 plus 32.5c for each $1 over $45,000 |
| $120,001 – $180,000 | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and over | $51,667 plus 45c for each $1 over $180,000 |
Not including the Medicare levy of 2% of taxable income.
Superannuation
Superannuation guarantee rates are increasing by 0.5% annually until 2026.
| Income Year | Super Guarantee % |
| 2021 | 9.5 |
| 2022 | 10 |
| 2023 | 10.5 |
| 2024 | 11 |
| 2025 | 11.5 |
| 2026 and beyond | 12 |
It was also proposed in the 2021-22 Budget to remove the $450 per month wage threshold for superannuation. If this legistlation is passed this will mean superannuation will be payable for all eligible employees regardless of their monthly pay from 1 July 22.
Minimum Wage
Following the Annual Wage Review 2021, the Fair Work Commission has announced a 2.5% increase to minimum wages. This will also apply to all award wages, with the award increase happening in 3 different stages.
The Fair Work Commission are currently updating their website and tools with more information and the new rates. You can subscribe to email updates to be notified when the new rates are available.