Employers & Business
- From 10.5% to 11%, the superannuation guarantee has increased.
- National and Award minimum wage increase has come into effect from 1 July 2023.
- The minimum salary that needs to be paid to a sponsored employee increased to $70,000 from $53,900 – the temporary skilled migration income threshold.
- Work restrictions will be reinforced for student visa holders to 48 hours per fortnight.
- The cap on claims through the small claims court procedures for workers to recover unpaid work entitlements increases from $20,000 to $100,000.
- Energy Bill Relief Fund for small businesses kicks in – if you meet the criteria, it will apply to your energy bills.
- Providing economy reports to the ATO starts for electronic distribution platforms.
- 11% more superannuation is guaranteed.
- The general transfer balance maximum is raised to $1.9 million due to indexation.
- Super income streams’ minimum pension amounts revert to default levels.
- SMSF transfer balance event reporting is now done periodically for all funds rather than annually.
For You and Your Family
- The new 67-cent fixed rate method for working from home deductions – ensure to have a record when you work from home.
- Access to the first home loan guarantee has been expanded to “friends, siblings, and other family members.”
- Increased Medicare low-income threshold for 2022-23.
- From 10 July 2023, the child care subsidy will increase for families with household income lies under $530,000.
- New parents can claim up to 20 weeks of paid parental leave.
- Increased age pension to 67 years of age.
Wage Increase from 1 July 2023
For employers, not correctly calculating wages is not considered a mistake, it’s wage theft. The Fair Work Commission charges fines of $9,390 per breach for a corporation. On 1 July 2023, award pay rates and the National Minimum Wage increased by 5.75%. All employers need to review their payroll systems and make sure they are applying the correct rates and awards.
From 1 July 2023, the National Minimum Wage has been maximised to $23.23 per hour. For casuals, the minimum wage, including the 25% casual loading is $29.04 per hour. For workers, the adult minimum award wage has increased by 5.75% from the first full pay period on or after 1 July 2023. Apart from this, the super guarantee increased to 11% from 10.5% on 1 July 2023.
The take-home pay of the employees might be minimised by 0.5% if the employment agreement with the employees indicates that the workers are paid on a ‘total remuneration’ basis. It means a higher proportion of their total remuneration will be directed to their super fund. Employees who are paid a rate plus superannuation will continue receiving the same take-home pay, and the 0.5% increase will also be included in their SG payments.