The start of the new financial year brings a number of important changes that will impact businesses. Below, we've highlighted some of the key updates you need to know to ensure your business stays compliant and well-prepared.
From 1 July 2024, the National Minimum Wage will increase by 3.75%. This means the new National Minimum Wage will be $24.10 per hour, or $915.90 per week. Businesses must ensure that their payroll systems are updated to reflect this change and that employees are paid at least the new minimum wage. The National Minimum Wage applies to employees who aren’t covered by an award or registered agreement. This increase aims to support the cost of living for workers and ensure fair compensation for their labor.
Related: Why it's time to Outsource Payroll
The Super Guarantee (SG) Increase from 11% to 11.5%
From 1 July, the minimum amount employers must contribute to employees’ super each year — the Super Guarantee (SG) — will rise from 11% to 11.5%. This means more money going into employees super accounts, giving your retirement savings a welcome boost. If you are an employer, this increase, will have an impact on your payroll management and accounting systems.
Related: Steps to Setting Up Self-Managed Superfund (SMSF)
Company and Business Name Fees Increase
In line with an increase in the Consumer Price Index (CPI) for the March quarter, the Australian Securities and Investment Commission (ASIC) will increase company fees and business name fees from 1 July 2024. This adjustment is necessary to keep up with inflation and the rising costs of regulatory processes. Businesses should budget for these increased costs in their financial planning.
|
Company Fees |
From 1 July 2023 |
From 1 July 2024 |
|
Application for registration as an Australian Company (proprietary company that has share capital) |
$576 |
$597 |
|
Reserving a company name |
$59 |
$61 |
|
Late payment fee for up to one month late |
$93 |
$96 |
|
Late payment fee for more than one month late |
$387 |
$401 |
|
Application for voluntary deregistration of a company |
$47 |
$49 |
|
Annual review fee for a proprietary company |
$310 |
$321 |
|
Annual review fee for a registered scheme or a public company |
$1,440 |
$1,492 |
|
Business name fees |
From 1 July 2023 |
From 1 July 2024 |
|
Registration or renewal for one year |
$42 |
$44 |
|
Registration or renewal for three years |
$98 |
$102 |
Related: Why do you need an Australian Resident Director when Registering a Company in Australia?
Significant changes to casual employment laws are coming into effect from 26 August 2024. These include a new definition of a casual employee and a new pathway for converting from casual to permanent employment. Employers will need to review their employment contracts and practices to ensure compliance with the new laws. The new definition aims to clarify the status of casual employees and provide more security and clarity for workers who may wish to transition to permanent roles. To find out more about the upcoming changes to casual employment click here.
The Right to Disconnect
The new 'right to disconnect' will allow eligible employees to refuse contact outside of working hours. This change is aimed at promoting a better work-life balance and reducing burnout among employees. The implementation dates are staggered: it starts on 26 August 2024 for non-small business employers and on 26 August 2025 for small business employers. Businesses should prepare for this change by establishing clear policies and communication practices that respect employees' right to disconnect outside of their designated working hours.
Changes to Individual Income Tax Rates and Thresholds
From 1 July 2024, the proposed tax cuts to Individual income tax rates and thresholds will:
These changes represent significant shifts in employment and business regulations. It's essential for businesses to stay informed and adjust their practices accordingly to remain compliant and support their employees effectively. By preparing for these changes, businesses can ensure a smooth transition into the new financial year and foster a positive working environment.
Have you noticed our EOFY 2024 Tax Tips... here's one that relates to Deferring income
“Deferring income until after June 30 can help push tax liability to the next financial year. Strategise smartly!”