What employers need to know before 1 July

Written by: George Haros, Diana Diaz and Luke Brusco, Gadens

With the new financial year almost here, there are some important changes to superannuation and minimum wages that employers should be aware of.

Minimum wage increase announced

The Fair Work Commission Expert Panel announced its Minimum National Wage Review decision.

The national minimum wage will be increased by 3.75% to $915.90 per week or $24.10 per hour. That reflects an increase of $0.87 per hour (or $33.10 per week).

Modern Award wages will also increase by 3.75% operative from the first full pay period on or after 1 July 2024.

In reaching its decision, the Expert Panel took into consideration ongoing inflationary and cost-of-living pressures, as well as the Stage 3 tax cuts.

Given the increase to minimum wages and the upcoming Federal criminalisation of wage theft in 2025, employers should take the opportunity to review employee wages to ensure they remain compliant.

Superannuation changes to look out for

The superannuation guarantee rate will increase from 11% to 11.5% on 1 July 2024. The rate will then continue to increase from 11.5% to 12% on 1 July 2025, where it is currently expected to remain.

The new financial year FY2024-25 will also see increases to superannuation contribution caps as follows:

And don’t forget - superannuation obligations are now part of the National Employment Standards (NES)

From 1 January 2024, the Fair Work Act 2009 (Cth) was amended to include an obligation for employers to make superannuation contributions so as to avoid a superannuation guarantee charge, giving more employees another avenue to enforce compliance.

Before this change, superannuation contribution obligations in superannuation legislation could be enforced by the Australian Taxation Office (ATO), and employees covered by modern awards and enterprise agreements that included superannuation terms could seek to enforce compliance with those terms.

See our latest articles on the criminalisation of wage theft here, and the upcoming superannuation changes here.