We have some important updates from the Fair Work Commission that may impact your payroll processes:
Minimum Wage Increase
Starting from the first full pay period after July 1, 2024, the national minimum wage and Award wages will increase by 3.75%. Please ensure that you update the hourly rates in your payroll system if you are paying employees according to an Award or minimum wage.
Flat Rate Payments
For those paying a flat, all-inclusive hourly rate or annual salary that covers allowances, overtime, etc., it’s crucial to re-confirm your Better Off Overall Test (BOOT) to ensure compliance with the new minimum rates.
Additional Payroll Changes
Alongside the wage increase, be mindful that the new tax thresholds and increased superannuation guarantee will take effect from July 1, 2024. However, these changes are relevant to the first pay date after July 1, not the first full pay period, unlike the wage increases.
Compliance and Penalties
The Fair Work Commission is intensifying its focus on underpayment investigations this coming year. New penalties for both businesses and individual directors for reckless or deliberate underpayments will be enforced. To ensure peace of mind and compliance, our specialist staff are ready to assist you in reviewing your payroll practices.
Sounds too hard?
Book a consultation with us or download our free EOFY checklist!