Key Action Items for the Upcoming Financial Year: A Guide for Employers

As we approach the end of the financial year, it is crucial for employers to stay updated on the latest changes affecting employee awards, pay rates, and superannuation.

Here’s a comprehensive guide to help you navigate these updates and ensure compliance.

 

Fair Work Updates

Award Wages
Fair Work has announced a 3.75% increase in minimum award wages for this year. The new minimum award wage will be $915.90 per week or $24.10 per hour.

These changes apply from the first full pay period starting on or after 1 July. Each award is currently being updated, so we recommend reviewing your current pay rates to ensure they meet the new standards.

You can access the updated pay rates effective from 1 July 2024 here.

 

Closing Loopholes
Several changes have been introduced to the Fair Work Act under the new Closing Loopholes laws

• Intentional underpayments to employees can now be a criminal offense, with penalties being the greater of three times the underpayment amount or $7.825 million.
• Changes to the definition of independent contractor. This is a big one – it will have implications to all businesses who are engaging contractors for their labour.

More details on the Fair work website are available here.

• Adjustments to who can be classified as a casual employee.
• The right to disconnect from work communications, which will not apply to small business employers until 26 August 2025.

 

Payroll Changes

Superannuation
From 1 July, the superannuation guarantee rate increases from 11% to 11.5%. XERO and Employment Hero Payroll (aka Keypay) will update this automatically.

As always, superannuation payments are due at the end of each quarter, with significant penalties for late payments, not to mention the loss of the tax deduction.

Tax Rates
Employee tax rates will also change on 1 July. The amount your employees are paid will vary based on their earnings. Your payroll system, such as XERO, is set to automatically calculate these changes so they will be reflected in net pay calculations automatically.

 

Important Dates to Remember

July

• Single Touch Payroll (STP) Finalisation: 14th July (Where LINK prepares your STP finalisation, work is already under way on this.)
• Payroll Tax Annual Reconciliations: 21st July. Ensure you declare all relevant wages, superannuation and other relevant items if you are preparing this yourself. (If LINK is preparing this for you, then we have this in hand already.)
• Monthly BAS: 21st July (for monthly lodgers)
• Quarterly Super: 28th July (remember to process in XERO at least 10 days prior).

August

• Monthly BAS: 21st August (for monthly lodgers)
• Quarterly BAS: 25th August
• Taxable Payments Annual Report (TPAR): 28th August (Where LINK prepares your TPAR, work is already under way on this.)
• Queensland Workcover renewals: Due by 31 August 2024. Ensure you declare all relevant wages, superannuation and other relevant items + check your industry code is correct.

Need Assistance?

We are here to help you navigate these changes and ensure your business remains compliant. If you need support with these changes to payroll obligations or any of these compliance items, contact LINK Advisors.