Tax changes affects small businesses as of July 1

He said it was essential that small business owners and managers understand these changes.

"They should check their payroll and accounting systems have been updated and they should talk to trusted advisers like accountants and bookkeepers," he said.

"It is important to get this right.

"With so many pressures on busy small business leaders as we near the end of the financial year it can be easy to overlook new and changing rules.

"However, there are significant changes that cannot be put aside."

Mr Billson said the end of the financial year was also a good time to not just have a stocktake but to take stock of the health of small business.

Ford McCarthy & Associates principal Bruce McCarthy owns a farm in the Mid North.

He said the instant asset write-off changes would have a huge impact on farming businesses as it had gone back to "basically pooling".

"When you go to trade in that machinery you've written off, it will then come back as recouped income," he said.

"That will increase people's income and they will be taxed on it.

"The most difficult factor now is managing the depreciation recoupment.

"Make sure to record them in the asset ledger so they can be identified for a depreciation.

"It's a big worry because we have previously had a 100 per cent write-off."

He said there was a special eligibility and expense criteria for the 20pc training and technology boost.

"There's no margin in business anymore, due to the cost of everything," he said.

"If you want to claim home office expenses, you've got to run a full diary of the Home Office running expenses, which is a nuisance."

Below, is a list of just some of the changes from the Australian Taxation Office.

Instant asset write-off

The instant asset write-off threshold will be $20,000 on a per asset basis for 12 months from July 1 for eligible small businesses with a turnover up to $10 million.

It will replace the previous arrangement introduced during the COVID pandemic which expires on June 30 and provided a write-off of eligible assets costing up to $150,000 that were first used or installed ready for use between March 2020 and June 30, 2023.

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From July 1, assets valued at more than $20,000, which cannot be immediately deducted, can be placed into the small business simplified depreciation pool and depreciated at 15 per cent in the first income year and 30pc each income year thereafter.

Technology investment boost

Small businesses have until June 30 to use the 20pc tax deduction for investing in digital operations such as new equipment like technology, cloud-computing, e-Invoicing or cyber security.

The technology investment boost will apply to investments made between March 29, 2022 and June 30, 2023 but to be eligible the item must be first used or installed ready for use by June 30.

A skills and training boost for training through a registered external training provider for new and existing employees applies between March 29, 2022 and June 30, 2024.

Small businesses may also be eligible for a range of tax deductions and concessions that are available before June 30 or from July 1 and should check with their trusted advisers or the Tax Office.

Small Business Energy Incentive

A tax incentive worth up to $20,000 will provide an additional 20pc depreciation for eligible assets that support electrification and more efficient use of energy by small businesses.

The bonus will be provided to businesses with an annual turnover of less than $50 million and is aimed at helping them save on energy bills by making investments like electrifying their heating and cooling systems, upgrading to more efficient fridges and induction cooktops, and installing batteries and heat pumps.

Under the scheme, which is pending passage through parliament, up to $100,000 of total spending will be eligible with the maximum bonus tax deduction being $20,000 per business.

Eligible assets or upgrades will need to be first used or installed ready for use between July 1, 2023 and June 30, 2024.

Super Guarantee

The super guarantee rate will increase from 10.5pc to 11pc for all employees eligible to receive superannuation.

Small business owners will need to use the new rate to calculate super on payments made to employees on or after July 1, even if some or all of the pay period is for work done before July 1.

The SG rate is legislated to increase to 12pc by 2025.

Employers are responsible for checking their payroll and accounting systems have been updated to ensure they correctly calculate their employee's super guarantee entitlement.

Payments must be received by the employee's super fund by July 28.

National Minimum Wage and Award Rate

The National Minimum Wage will increase to $882.80 per week, or $23.23 per hour.

Award rates of pay will increase by 5.75pc.

Both changes are effective from the first full pay period starting on or after July 1 and more information is available on the Fair Work Ombudsman's website.

Small businesses can Sign up to email updates from the Fair Work Ombudsman and can use its Pay and Conditions Tool and pay guides.

The Fair Work Commission has also made a decision to increase minimum wages by 15pc for some employees working in aged care from June 30.

This is separate to the annual wage review.

PAYG & GST uplift rate

The federal government will reduce the PAYG and GST uplift on quarterly payments from what would have been 12pc to 6pc for the 2023-24 income year in a move that should help assist cash flow for small businesses.

Single Touch Payroll

Employers are required to finalise employees' Single Touch Payroll data by July 14. The Tax Office advises small business owners to double check they are finalising STP data for the 2022-23 financial year.

It also says employers are required to report pay as you go withholding information every time they pay employees through Single Touch Payroll.

From July 1 these amounts reported through STP will be used to pre-fill labels W1 and W2 in activity statements in ATO online services.

Paid Parental Leave scheme

The entitlement of 18 weeks' paid parental leave pay will be combined with the Dad and Partner Pay entitlement of 2 weeks' pay.

This means partnered couples will be able to claim up to 20 weeks' paid parental leave between them.

Parents who are single at the time of their claim can access the full 20 weeks.

These changes affect employees whose baby is born or placed in their care on or after July 1.

Temporary Skilled Migration Income Threshold

The Temporary Skilled Migration Income Threshold will increase from $53,900 to $70,000.

This applies to employers who wish to nominate workers for subclass 482, 186 and 187 visas and they must meet certain salary and employment condition requirements to ensure overseas workers are paid no less than an Australian worker doing the same work in the same location, known as the annual market salary rate.

Details: www.ato.gov.au