Many employment arrangements change with the start of a new financial year. This year is no exception. Here are some of the things you need to be prepared for to be “employment ready”:
Increases to Minimum Wage and Award Wages
Every year, the Fair Work Commission determines what increases are warranted for those on the minimum and award wages.
The Fair Work Commission is yet to announce when their latest decision will be published. The likelihood is that any decision will be effective from the first pay after 1 July 2022.
Employers, the unions and the government all make submissions to the commission on the percentage these wages should rise. This year, the unions are asking for 5.5% with employers asking for between 2.5 and 3%
The decision is likely to come down with an increase somewhere between these claims. However, the new Labour Government is supporting an increase of 5.1%,. This puts the ball definitely in the Fair Work Commission’s court.
We will update this post with more information as it becomes available.
Superannuation guarantee rate increases from 1 July
The Superannuation Guarantee rate is scheduled to progressively increase to 12% by July 2025. On 1 July 2022, the super guarantee (SG) rate will increase from 10% to 10.5%.
The rate you’re required to use depends on when your employee is paid, not when the income is earnt. This means the new rate will need to be applied to any payments of salary or wages made on and after 1 July 2022, even if some or all of the relevant pay period is before 1 July.
To prepare for these changes, check your payroll and accounting systems are updated.
$450 Superannuation Guarantee Threshold Removed from 1 July 2022
Who you pay superannuation payments to will also change on 1 July 2022
From 1 July 2022, the minimum threshold for paying superannuation will change. Employers are required to make super guarantee contributions regardless of how much the employee is paid.
To be paid super, employees must still satisfy other super guarantee eligibility requirements.
Changes To Minimum Payments under the Social And Community Services Award
After 1 July 2022, changes to payments for part-time and some casual employees change under this Award.
Other changes also take effect in the award from 1 July, these include (but aren’t limited to) changes to:
- broken shift allowances
- damaged clothing allowances
- remote work rules.
Should you have any questions regarding the changes to this award – please contact us.
Check that you are “Employment Ready” for the New Financial Year
Are there any other changes that may affect your business? The end of financial year is also a good time to:
- review your business and marketing plans,
- update your goals and priorities,
- assess whether current HR strategies and business structures are working; and,
- prioritise and maximise your efforts for current and future opportunities.
We can help you to review your business. Contact us to discuss one of our HR Reviews which will ascertain if your business is “employment ready”.
For more information on this article, please contact us on:
- Telephone: 1800 HR Smartz (1800 477 627)
- Email: email@example.com
- Website: https://peoplesmartz.com.au/contact