"There are a number of significant changes about to take effect from 1 July that Australian businesses need to be aware of," Innes Willox, Chief Executive of the national employer association Ai Group said today.
These include:
1. The superannuation guarantee percentage will increase to 11%.
2. Award minimum wages will be increased by 5.75%, operative from the first full pay period on or after 1 July 2023. The National Minimum Wage will be increased to $882.80 per week or $23.23 per hour, reflecting the FWC’s decision to align the National Minimum Wage to the C13 classification level found in modern awards. It was previously aligned to the lower C14 level. Junior, apprentice and trainee wage rates will be adjusted proportionately
3. Government-funded paid parental leave will be extended from 18 weeks to 20 weeks by combining the current maximum of 18 weeks with the current 2 weeks of ‘dad and partner pay’. The 2 weeks’ pay added to the 18 weeks is to be taken on a ‘use it or lose it’ basis by each claimant. The provision of separate dad and partner pay will be abolished. Eligibility to the Government-funded paid parental leave will also be expanded.
4. The eligibility age for the Age Pension is increasing to 67 years. If you were born on or after 1 January 1957, you must be 67 years old to be eligible for the Age Pension.
5. Work restrictions for student visa holders will be reintroduced, ending the phasing out of concessions which applied during the COVID period. A new work hours cap of 48 hours a fortnight will apply from 1 July, increased from the previous cap of 40 hours a fortnight. Employers and students will need to comply with work restriction caps.
6. The limit on access to the ‘small claims’ jurisdiction for recovery of underpayments will rise from $20,000 to $100,000, enabling a much greater volume of claims to potentially be pursued through this jurisdiction.
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