What needs to be done before 30 June 2021?
Superannuation Contributions
If you would like to claim a deduction in the 2021 financial year, make sure payment is made to Industry Superannuation Funds by 22 June 2021 to allow them to accept the contributions.
| Contribution Caps: | 30 June 2021 | 30 June 2022 |
| Concessional (Deductible) | $25,000 | $27,500 |
| Non-Concessional | $100,000 | $110,000 |
Temporary Full Expensing
As announced in the 2020 Federal Budget, eligible businesses with aggregated turnover of less than $5 billion can deduct the business portion of the cost of eligible new depreciating assets that are first held and installed ready for taxable use from 6 October 2020 to 30 June 2022.
Changes from 1 July 2021
Superannuation Guarantee Charge – 10%
From 1 July 2021 the superannuation guarantee charge (SGC) rate will increase from 9.5% to 10%,
Tax Rates
Resident Individual income tax rates have remained the same for the 2021-2022 financial year:
| Taxable Income: | Tax on this income |
| 0 - $18,200 | Nil |
| $18,201 - $45,000 | 19 cents for each $1 over $18,200 |
| $45,001 - $120,000 | $5,092 plus 32.5 cents for each $ over $54,000 |
| $120,001 - $180,000 | $29,467 plus 37 cents for each $1 over $120,000 |
| $180,001 and over | $51,667 plus 45 cents for each $1 over $180,000 |
For most business companies (base-rate entities*), the rate of 26% for the 2021 income year is reducing to 25% for the 2022 income year. For the remainder of companies, the general company tax rate of 30% remains.
| 2020-2021 | 2021-2022 | |
| General | 30% | 30% |
| Base-Rate | 26% | 25% |
*A company will be a Base-Rate entity if it meets the aggregated turnover test of less than $50m and no more than 80% of its assessable income for the income year is passive income.
Minimum Pension Drawdowns extended for 12 months
The 50% reduction in the minimum pension drawdowns from superannuation accounts has been extended for a further 12 months to 30 June 2022
| Age | Ordinary | 50% Reduction |
| Under 65 | 4% | 2% |
| 65-74 | 5% | 2.5% |
| 75-79 | 6% | 3% |
| 80-84 | 7% | 3.5% |
| 85-89 | 9% | 4.5% |
| 90-94 | 11% | 5.5% |
| 95 or more | 14% | 7% |
STP Reporting
Employers should be reporting through Single Touch Payroll (STP) unless they only have closely held payees, or are covered by a deferral or exemption.
From 1 July 2021, employers with closely held payees must report through STP. You can choose to report these payees each pay, monthly or quarterly.
Times have changed significantly this year. We hope all of our clients have managed well during these tough times and please remember that we are only a phone call or email away if you have any questions. We look forward to another successful association in this next financial year.
July Lodgement & Payment Due Dates
| Detail | Due |
| STP Finalisation | 14 July |
| Monthly Activity Statement | 21 July |
| Quarterly Activity Statement | 28 July |
