News
Wage increases from 1 July 2023
Award rates of pay and the National Minimum Wage increased by 5.75%.
It is vitally important that all employers review their payroll systems to ensure that they are applying the correct rates and Awards following wage increases from 1 July.
The Fair Work Commission will fine an employer $9,390 per breach if wages have been incorrectly calculated.
What are the new minimum wages?
The National Minimum Wage applies to those workers not covered by an Award or registered agreement.
- From 1 July 2023, the rate has increased to $23.23 per hour ($882.80 per week for a full-time employee working a standard 38-hour week).
- For casuals, the minimum wage including the 25% casual loading is a minimum of $29.04 per hour.
- For workers under an Award, adult minimum award wages increase by 5.75% applied from the first full pay period on or after 1 July 2023. Proportionate increases apply to junior workers, apprentice and supported wages.
Superannuation guarantee increase
Rates increased from 10.5% to 11% on 1 July 2023.
If the employment agreement with your workers states the employee is paid on a ‘total remuneration’ basis (base plus SG and any other allowances), then their take home pay might be reduced by 0.5% - with a greater percentage of their total remuneration directed to their superannuation fund.
For employees paid a rate plus superannuation, then their take home pay will remain the same and the 0.5% increase will be added to their SG payments.
Need help with your payroll?
We can advise you regarding all aspects of payroll preparation and compliance, making sure your calculations are correct and that you meet your deadlines and requirements. We can also offer advice on recruitment and staff retention and provide human resource consultancy services through one of our approved suppliers.
We can file your in-year and year-end returns for you with the ATO and provide you with PAYG withholding tax declarations to distribute to your employees at the year-end.
The responsibilities faced by employers can be intimidating, but we can guide you through the processes, costs, calculations and deadlines and take care of everything for you.
Call 0403 184 157 or complete our online enquiry form here to arrange your free initial consultation.
Date published 24 Jul 2023
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