As we come into the new financial year, there are a number of changes to wages and superannuation payments that employers need to be aware of. Please read the information below carefully.
Superannuation Guarantee Rate Increase 1 July 2024
The Australian Taxation Office has announced that the Super Guarantee rate will increase from 11% to 11.5% from 1 July 2024.
This new rate will apply to all wages paid on or after 1 July 2024. This includes payment for hours that may have been worked prior to this date as part of the employee’s usual pay period.
Example: An employee is paid on a fortnightly basis. The fortnightly pay cycle commences on Monday 24 June and ends on Friday 5 July 2024. Payment for this period will be processed on Monday 8 July. The payment for the pay period occurs after 1 July 2024, meaning that the increased super rate of 11.5% will apply on all ordinary time earnings in this pay period.
What you need to do
You will need to make sure you update your payroll system before 1 July to comply with this superannuation increase.
We can support you with enquiries about this change, however, questions about how this is implemented in your payroll systems, or detailed super/taxation enquiries should be directed to the most appropriate contact such as your payroll provider, accountant, or the Australian Tax Office.
Be Prepared – Annual Wage Review
On Monday 3rd June 2024, the Fair Work Commission released its decision regarding the Annual Wage Review 2024-2025.
The Fair Work’s Annual Wage increase is 3.75%. The increase applies to both the National Minimum Wage and to the minimum pay rates under Modern Awards. These changes will take effect from the first full pay period on or after 1 July 2024.
Employees covered by an award or registered agreement must be paid the minimum pay rates in their award or agreement, including penalty rates and allowances. These pay rates may be higher than the National Minimum Wage.
We will let you know as soon as the pay guides with the new rates are released by Fair Work. This is usually towards the middle or end of June.
Employers need to be aware of the impacts these increases will have on any annualised salary arrangements, above award pay rates, or loaded pay rates as any buffer over the award rates may now be reduced, or not pass the Better Off Overall Test.
What you need to do.
Fair Work will release the updated pay guides. This is usually towards the middle or end of June. We will notify you when these are released.
When you receive this notification, you can review your employees’ wage rates and, if necessary, increase their rate to the new award minimum.
