Key Rates and Thresholds FY 2021
By Paolo, 04.08.2020
Fair Work Australia and the ATO have released new Key Rates and Thresholds applicable for the Financial Year 2021. Here are some of the most important ones that affect small businesses.
Payroll Key Rates and Thresholds
Fair Work Minimum Wage and Award Pay Conditions
The National Minimum Wage has increased for FY 2021 by 1.75%. The new Minimum Wage Pay Rates are:
- $19.84 Hourly Rate (Full-Time Employees*)
- $753.92 Weekly Salary (Full-Time Employees*)
*25% Loading still applies to Casual Employment
The same percentage increase will also apply to all Modern Awards. However, the increase will happen over three separate stages during the year.
More detailed information on the FY2021 Annual Increase is available on a separate blog post on our website.
Laundry and Dry Cleaning Allowance
The annual tax-free laundry allowance remains at $150 per annum.
Car, Meals and Travel Allowances
The cents per km allowance has increased to 72 cents per Km (up to a maximum of 5,000 Km per vehicle).
The Overtime Meal Allowance remains at $31.25 per meal.
The ATO has also updated the rates for the reasonable travel overnight allowances applicable to both metropolitan cities and country centres.
Superannuation Key Rates and Thresholds
The percentage of Superannuation Contribution Guarantee remains at 9.5% of Ordinary Time Earnings.
The minimum monthly threshold is still set a $450 per month.
The quarterly superannuation maximum contribution cap has increased for FY 2021 to $57,090 (allowing a maximum amount of Quarterly Superannuation Guarantee Contribution of $5,423.55).
The annual Concessional Contribution cap remains at $25,000 per annum with the ability to carry forward unpaid contributions for a 5 year period.
Lump Sums and Employment Terminations
Genuine Redundancy and Early Retirement Payment Limits
The limit of the Tax-Free Component for Genuine Redundancy and Early Retirement Scheme has increased for the FY 2021 to the following:
- Base Limit: $10,989
- Each Year of Completed Service: $5,496
Death & Life Benefits ETP & Whole of Income Cap
The ETP cap for both Death & Life Benefits has increased for FY 2021 to $215,000.
The Whole of Income Cap stays at $180,000.
Motor Vehicles Key Rates & Thresholds
The Income Tax and GST Threshold for purchasing a new car has increased for FY 2021 to $59,136.
The Luxury Car Threshold has increased for the FY 2021 to:
- $68,740 (Non-Fuel-efficient vehicles)
- $77,565 (Fuel-efficient vehicles)
Instant Asset Write-Off
For assets first used or installed ready for use between 12 March 2020 until 30 June 2021, and purchased by 31 December 2020, the instant asset write-off:
- The threshold amount for each asset is $150,000
- Eligibility extends to businesses with an aggregated turnover of less than $500 million.
This blog and attached resources are of general nature designed for informational and educational purposes only. They should not be construed as professional financial advice for your individual business. Should you need such advice, consult a licensed financial or tax advisor.