There have been some recent changes to wages, superannuation and a new Act which may affect businesses’ payroll processes starting next financial year! We thought we’d give you a quick update on a few of the recent decisions, and some resources on where to find out more!
Increase to the National Minimum Wage
Firstly, the Fair Work Commission has increased the national minimum wage and award minimum rates by 2.5%.
These changes are set to take place on 1 July 2021. However, some industries will have a delayed start time to accommodate the COVID recovery. To learn more about these changes and different industry start dates, you can read our blog article here.
Super guarantee going up
Secondly, the superannuation guarantee will go up to 10% starting 1 July 2021.
There are also some proposed changes to super contributions by introducing a ‘stapled fund’ for employees. This aims to prevent an employee having multiple superfunds by making sure employers don’t contribute to a default fund where an employee may already have a super fund. To learn more about these changes, you can read the blog article here.
Wage Theft Act comes into effect in Victoria
Thirdly, the new Wage Theft Act in Victoria will come into effect on 1 July 2021.
The Act means that employers, and their directors and officers, face serious penalties if they are found to have not met employee wages and other entitlement obligations. Employers who make honest mistakes or have shown due diligence in meeting entitlements are unlikely to be found to have committed an offence under this Act. If you want to know more about the new law, you can read the blog article here.
Also – don’t forget about the changes to casual employment amidst this all! For more information you can read more here.
Where to get help
There are quite a few changes coming in this busy time of EoFY and a lot already to keep track of. If you do want any support or want to run anything by us – let us know!