1 July 2023 Essential Updates
Jul 03, 2023You may have seen in Employii's recent newsletter that effective 1 July 2023, a number of significant changes came into place. Specifically:
- Minimum wages (Fair Work: 5.75% increase. State: will depend on your State)
- Superannuation increased to 11%
- Student visa holders may only work up to 48 hours per fortnight:
- While class is in session (i.e. Students can work up to full-time while on University break)
- This is the total amount across all jobs for the individual, not per employer
- Click here for more info
- Changes to Parental Leave - click here for more info.
So all these changes have recently come into effect, what now?
We strongly recommend taking the following steps to ensure compliance with the above and mitigate the risk of underpayments, breaches, and penalties:
- Increase your Superannuation to 11%. (Remember: this will increase by 0.5% each 1 July until it hits 12% in 2025. Keep this in mind for future budgeting)
- Assess your current wage rates against the new minimum rates (these change from Award to Award):
- Re-test any annualised salaries against the new minimum rates.
- Re-test any flat rates against the new minimum rates.
- Increase any rates that fall below the new requirements.
- Assess any allowances that apply to your staff, against the new allowance rates and increase them as required.
- Assess any employees on student visas’ contracts and working hours and ensure:
- You communicate the new cap on working hours to them (Note: This is different to the previous cap of 40 hours per fortnight that was in place pre-covid).
- You have mechanisms in place to:
- Flag when an employee is rostered on for too many hours.
- Confirm whether they have secondary employment. Remember, these hours will also count towards the cap.
- Confirm when students are on break and are permitted to work up to full time.
- Managers are also aware and do not roster them on more than legally permitted.
- Employees are aware of their obligations. Ultimately it is their responsibility to not breach these caps, however, Employers can still be held liable. Trust us, you do not want the Department of Home Affairs on your back.
Did you know: wages are often increased each year on 1 July (and sometimes throughout the year). It’s best to keep these dates in mind (put a reminder for 1 June in your diary) and include forecasted increases in your budgeting processes.
What can I do as an employee on a student visa?
- Keep track of your hours worked each fortnight. This will allow you to ensure that you are not breaching the new student visa provisions.
- Don't be afraid to speak out to your Employers and come to an arrangement in terms of rostered hours that suits both parties.
- Provide your Employers with your academic calendars. This will indicate when you are able to work beyond the cap during University breaks.
If you have any questions about the newly introduced changes, don't hesitate to get in contact with us via email or one of our social media platforms!
Author: Chelsea Finlay (HR Officer).
