Last week,  a lot of us had eyes locked on multiple screens as desperately scrambled to score tickets to a Taylor Swift concert, so we might not have noticed a new financial year had kicked off bringing a swag of changes.

Minimum wage increase

Everyone is likely across this change, so this is just a gentle reminder to check that all the updates have been made and that you are meeting your employer obligations as per the relevant awards.  For more information about the increase, click here. 

Superannuation guarantee rate

As of 1^st July 2023, the superannuation guarantee rate shifts up from 10.5% to 11%.  This is part of the legislated schedule that will ultimately see superannuation sitting at 12% by 2023.

Unfair dismissal high-income threshold

As happens every new financial year, the high-income threshold has increased from $162,000 per year to $167,500.  This is important as it applies to those employees who are not covered by an award or relevant industrial instrument and allows those that earn below this threshold to make an unfair dismissal claim. 

Penalty unit increase

We often refer to penalty units in our blogs when discussing fines that may be imposed if you breach specific legal requirements.  A single penalty unit has increased from $275 to $313 as of 1^st July. 

That doesn’t seem too hefty however penalty units are usually applied in multiple units, not single ones.  The maximum civil penalty for individuals is the greater of 5,000 penalty units (currently $1.565 million) or three times the benefit obtained and detriment avoided!  And for a company, it is significantly higher with the maximum civil penalty being the greater of:

• 50,000 penalty units (currently $15.65 million)
• three times the benefit obtained and detriment avoided, or
• 10% of annual turnover, capped at 2.5 million penalty units (currently $782.5 million).
• Victoria – Increased WorkCover premiums

As discussed by our friends over at OccCorp, WorkCover premiums in Victoria have had a significant increase rising from 1.272% of payroll to 1.8%.  Read more here on why the increases have occurred and how you may be able to reduce your premiums.

Western Australia – regional allowance increase

Specific to WA, a weekly regional allowance must be paid, and the rate is determined based on the location.  These rates have been increased as of 1^st July so make sure you are up to date with current levels and applying them accordingly.

Temporary Skilled Migrant Income Threshold (TSMIT)

A significant change for those employers who sponsor temporary skilled migrants is that the required threshold payment has increased from $53,900 to $70,000 as of 1 July.  This is the first increase to the TSMIT since 2013.

Student visa work hours

If you employ student visa holders, be aware that the cap on hours they can work has been reinstated with a new limit of 48 hours of work per fortnight.  These restrictions were removed in January 2022 due to work shortages caused by Covid but ended on 30 June 2023.

Note that student visa holders already working in the aged care sector as at 9 May 2023 are approved to continue working unrestricted hours until 31 December 2023.

If you are unsure as to how or if any of these changes apply to your business, contact the HR Staff n’ Stuff team for help.