It has been a year of significant changes in areas such as personnel management, compensation, and taxation. Let’s go through some important updates that will take effect from 1 July and understand their implications for your business and employees.
INCREASE IN SUPER GUARANTEE
It’s crucial to ensure your payroll systems are in order as the superannuation guarantee rises to 11% from 1 July. The super guarantees for the current quarter will remain at 10.5%.
Additionally, be aware of the gradual increases that will lead to a 12% super guarantee by July 2025.
To determine the impact on employees’ pay, review whether their contracts include superannuation or not.
WAGE INCREASES
Starting from 1 July, wage increases will come into effect following a ruling by the Fair Work Commission.
For employees not covered by an award, the minimum wage will rise to $882.80 per week or $23.23 per hour, applicable from the first full pay period commencing on or after 1 July 2023.
For employees covered by an award, minimum award wages will increase by 5.75%, also effective from the first full pay period starting on or after 1 July 2023.
FAIR WORK COMMISSION AMENDMENTS
From 1 July 2023, the application fee for dismissal, general protections, bullying, and sexual harassment at work applications made under specific sections of the Fair Work Act 2009 will increase to $83.30. However, there is no fee for applications dealing with sexual harassment disputes under section 527F of the Act.
Furthermore, the high-income threshold in unfair dismissal cases will rise to $167,500, and the compensation limit for dismissals occurring on or after 1 July 2023 will be $83,750.
CHANGES TO PAID PARENTAL LEAVE
Effective from 1 July, amendments to the Paid Parental Leave Scheme will be implemented.
Notably, the Dad and Partner Pay (DAPP) scheme, which currently offers up to two weeks of paid leave, will be integrated with the 18-week paid parental leave scheme. This will allow eligible parent couples or single parents to share a total of 20 weeks of leave, promoting gender equality in parental care.
Other changes include the flexibility to receive the 20 weeks of leave in multiple blocks within 24 months of the child’s birth or adoption date, removing the previous requirement of 12 consecutive weeks.
Moreover, employees now have the right to request an additional 12 months of leave, totalling 24 months, with employers needing reasonable business grounds to refuse.
CHILDCARE SUBSIDIES
For employers with parents of young children, it’s important to note that childcare rebates will change from 1 July. These adjustments aim to provide a higher level of subsidy for childcare costs to families with a family income below $530,000.
For instance, families earning up to $80,000 will receive an increased maximum Child Care Subsidy (CCS) amount, rising from 85% to 90%. Subsidies for families earning over $80,000 will start at 90% and decrease by 1% for every $5,000 of additional income.
Although these changes will be applied automatically, it’s good to be aware of them.
INTRODUCTION OF DOMESTIC VIOLENCE LEAVE
Starting from 1 February, employers with 15 or more employees were required to provide their employees with 10 days of paid family and domestic violence leave (FDVL) per year.
For smaller employers with fewer than 15 employees, this entitlement will be effective from 1 August 2023.
Paid family and domestic violence leave is a sensitive topic, and appropriate procedures need to be in place, covering how HR or managers handle requests and addressing privacy concerns related to pay slip recording. Additional information is available in the provided link.
PENSION AGE AND ELIGIBILITY ADJUSTMENTS
Businesses employing older Australians should note that from 1 July, the pension age will increase to 67 for individuals born on or after 1 January 1957.
Additionally, asset and income eligibility tests will be revised, allowing singles to earn $204 per fortnight and couples $360 per fortnight before their full pension entitlements are affected.
RELIEF FOR ENERGY BILLS
To alleviate the impact of rising energy costs on businesses, bill relief of up to $650 will be provided starting in July.
The specific amount of relief varies by state, so refer to the provided link for more details. To qualify, your business must be on a separately metered business tariff with your electricity retailer. Please note that running a business from home may not meet the eligibility criteria.