Australian Minimum Wage & Superannuation Changes
JULY 01,2022 | BUSINESS | READING TIME: 3 MINUTES | By DYLAN HALLIDAY
Across Australia today, minimum wage and superannuation changes have come into effect.
Is there anything I need to do in RosterElf?
Before addressing the changes and the requirements to remain compliant, here's some RosterElf education.
For many, it's surprising to know that RosterElf doesn't send any financial information to your payroll software. This is because we believe your payroll software should be your point of truth. This prevents erroneous updates made in RosterElf from being pushed to your payroll software and overwriting the correct rates or financial information.
Take this example CSV export below. April, our fictitious but highly requested Chef, worked Mon-Wed 11 am to 9 pm, broken down into ordinary and late-night hours. The export has her name, the position she worked, the site, the payroll rule, date, times and total hours. When this information goes to your payroll software, the payroll software looks at the number of hours performed on a day and which payroll rule (pay rate) to calculate the pay your employee receives.
So, what do I need to do?
In RosterElf, the financial information you add to the system estimates your labour cost while rostering and provides accurate labour costs while processing your payroll. Many business owners rely on this highly valued part of the platform. So, whilst we don't push the financials to your payroll software, updating any pay templates impacted by the minimum wage changes is still essential.
NOTE: We cannot advise what figures to use when updating your templates. However, we are happy to help guide you on how to update your account with the figures you provide.
In your payroll software, you or your accountant should review all your impacted staff concerning the minimum wage and superannuation changes and make the required updates accordingly.
What has changed?
In preparation for the changes that have come into effect today, we drafted our file notes that we will share with you today.
NOTE: Any information provided by RosterElf around minimum wages and the increase to superannuation is provided in a general nature and should not be relied upon. You should speak to your accountant or other qualified persons if you need any advice on the changes.
Minimum Wage Changes
Legislation in effect: July 1 2022 (Today)
The National Minimum Wage increase applies from the first full pay period on or after July 1. So if you have a weekly pay period that starts on Mondays, the new rates will apply from Monday, July 4.
Award increases happen in 2 stages. Most are the first pay period on or after July 1. However, some awards in aviation, hospitality and tourism happen from October 1.
The affected awards concerning the October 1 rule are:
Aircraft Cabin Crew Award
Airline Operations – Ground Staff Award
Air Pilots Award
Airport Employees Award
Airservices Australia Enterprise Award 2016
Hospitality Industry (General) Award
Registered and Licensed Clubs Award
Restaurant Industry Award
Marine Tourism and Charter Vessels Award
Alpine Resorts Award
What is the increase?
• National Min Wage increased by 5.2%, which is $40 p/week
• New minimum wage is $812.60 p/week or $21.38p/hour
• Award increase 4.6% subject to a minimum increase of $40 based on a 38-hour week full time
• Above $869.60 is a 4.6% increase
• Below $869.60 is a $40 increase
Changes to superannuation from July 1 2022
In addition to an increase in minimum wages, there are changes to the superannuation guarantee you should know about taking effect from July 1. It would be best if you made these changes in your payroll software.
The changes include:
• removal of the $450 super guarantee threshold
RosterElf is built with you in mind. Our online staff scheduling tool handles all your employee scheduling needs.
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