The new financial year has brought about several changes to Fair Work Regulations and other employment related requirements.
This includes the usual changes to the thresholds for the purposes of the Fair Work Act (FW Act). This year, there's also an increase to FW Act civil penalties for contraventions, parental leave changes and a change to the superannuation guarantee rate. Some of the key changes are detailed below;
Minimum Wage Increase
Modern award minimum rates will increase by 5.75%; and the minimum wage – which applies to non-award or employees under an enterprise agreement– will increase to $23.23 per hour ($882.80 per week).
If your employees are paid at award rates, or on an annualised salary calculated by reference to these award rates, it's important to review the amounts you are paying and update your payroll systems to ensure you continue to comply.
Increase to 'small claim' maximum recoverable amount
As of 1 July 2023, employees will be able to pursue underpayments of wages of up to $100,000 in the FW Act 'small claims' jurisdiction in the Federal Circuit and Family Court of Australia. Previously, the cap for such a claim was $20,000.
Small claims proceedings are relatively informal, and lawyers are only permitted to appear with the permission of the Court. This may result larger monetary claims being pursued by employees in a forum where the parties aren’t legally represented at the hearing so it’s more important than ever to take steps to minimise the risk of claims of this type.
Increase to the superannuation guarantee rate
As of 1 July 2023, the superannuation guarantee percentage increases from 10.5% to 11%.
Ensure you are paying at 11% and keep in mind that employers aren’t obliged to make contributions on more than $62,270 of superable wages per quarter for any one employee. In addition, employers (and employees) should remain conscious of the concessional $27,500 contribution limit and what superannuation guarantee is paid on and what’s it’s not.
You can review more details on these changes and others upcoming at the following link;