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Mark your calendars for new workplace laws

How well do you know the new workplace laws? The Fair Work Ombudsman says business owners must brush up on their knowledge of the changes made to the workplace laws with the Closing Loopholes bill that passed in December.

 The new laws, which cover gig work, casual employment and the right to disconnect, come into effect on various dates in 2024 and into 2025.

 * Changes to the definition of casual employment come into effect on 26 August

 * The new minimum standard for gig workers comes into effect on 26 August

How to meet your super obligations

Are you on top of your obligations as an employer with the Australian Taxation Office (ATO)?

 Here are some reminders for paying super for your employees:

 * The super guarantee rate you pay your employees increased this financial year to 11.0%.

 * Most employees are eligible for super and some contractors, too. Check your employment contract and working arrangement for each worker to work out if you have to pay super.

Inflation heading in the right direction

The monthly consumer price index (CPI) for the 12 months to January was 3.4%, the same as December 2023, which was the lowest inflation reading since November 2021, according to the latest data from the Australian Bureau of Statistics (ABS).

 Inflation was driven by increases in housing costs, including rents (up 7.4%), new dwelling purchases (up 4.8%) and electricity (up 0.8%).

 Other significant contributors were food and non-alcoholic beverages (up 4.4%), alcohol and tobacco (up 6.7%) and insurance and financial services (up 8.2%).

Four capital gains tax concessions to help small businesses

As a small business owner, you can take advantage of one of four capital gains tax (CGT) concessions offered by the Australian Tax Office.

These allow you to reduce, disregard or defer some capital gain from an active asset used in your small business.

 Eligibility

 These concessions become available when you dispose of an active asset, provided you meet certain eligibility requirements.

 First, you must be one of the following:

 

Wages increase across public and private sectors

The wage price index, which measures changes in the price of labour, rose 0.9% for the December 2023 quarter, according to the latest data from the Australian Bureau of Statistics (ABS).

This was the highest quarterly increase since March 2009 and meant that average wages rose 4.2% for the whole of 2023.

Both public and private sectors saw increases, with public sector wages rising 4.3% over 2023 and private sector increasing 4.2% for the year.

This is the first time since December 2020 that the public sector has overtaken the private sector.

HILDA survey reveals tax relief skewed towards top earners]

The latest Household, Incomes and Labour Dynamics in Australia (HILDA) Survey reveals that over the past two decades, the country’s highest earners have received significantly more tax relief than the average worker due to the phenomenon of ‘bracket creep’.

 The HILDA survey, conducted by the University of Melbourne, tracks economic well-being and other aspects of life in Australia.

How AI could boost productivity

New research from the Productivity Commission has found there is still plenty of untapped potential in artificial intelligence (AI) for Australian businesses.

 In the report, the Commission details several ways in which AI can address productivity in business, including:

 * Skill and labour gaps: AI has the ability to add skills through potentially automating some tasks, leading to a smarter use of the limited workforce.

Aussie SMEs hit financing wall amid tighter lending standards

Around half of Australia’s small and medium enterprises (SMEs) struggle to secure finance from traditional lenders with terms that suit their needs. According to the Reserve Bank of Australia (RBA) a recent survey of SMEs revealed that respondents believe banks have tightened lending standards, making it harder to get loans.

 Banks themselves have reported being more cautious lending to sectors that are more exposed to a slowing economy.

 The requirement to use residential property as collateral for loans has been a problem for SMEs for a while.