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Minimum Wage Increase and changes to Superannuation from 1st July 2022

Is there any action you need to take between now and the end of financial year?

As we move into the end of another financial year, we suggest that all business use the opportunity to review plans and be mindful of what did and didn't work for you. This is an opportunity to take a moment to reassess, so that you may look ahead to the new financial year with positive expectation and maybe even some excitement. After all, why did you go into business in the first place?

“An hour of planning can save you hours of doing.”

Dale Carnegie

You may want to review are your budget and projections vs actuals, your business plan, review your employee pay rates and any bonus frameworks you may want to employ. Maybe even use the time for a planning day with your staff, get feedback from those that know your business best. There are some changes happening around the expectations for employers - we suggest making yourself aware of the below and ensuring your business is compliant into the new financial year.

Superannuation Guarantee Charge (SGC)

For Employers...

The quarterly superannuation contribution for the June 2022 quarter is due and payable by the 28th July 2022. BUT are you aware that this is a tax deductible expense and can be claimed in your 2022 tax if it is received by the superannuation fund before 30 June 2022?

This means that superannuation payments can be made early and we strongly suggest that if you want to take advantage of this tax deduction opportunity that superannuation payments are made this week, as to ensure they are received and processed on time.

The SGC amount increases to 10.5% from the 1st of July 2022. Most payroll software will complete this new calculation automatically, but it is worth double checking when your first pay run of the new financial year is done, or, for employees, when you receive your first payslip.

Wage Increase Announcement

You may already be aware of the outcome of the Fair Work Commission (FWC) annual wage review, from this came two major announcements

  • The National Minimum Wage will increase by $40 a week - an increase of 5.2%

  • The Award Minimum Wages will increase by 4.6%

The FWC is currently working on updating their tools and website and will provide more details on the pay rate increases for each award. We will keep you informed when these details are released.

If we already process your regular wages, and they are affected by the award wage increase, we will have already been preparing for this and will have the changes made in the first pay run for the new financial year.

If you process your wages yourself and you would like any help in making sure you are ready for the increase, please get in touch with us using the button below so we can ensure we have the time and a capacity to help everyone who needs it. We are here to help, if you feel you need any assistance with the above, please contact us via the link below.

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