As we are about to enter the new financial year 2024-2025, many businesses will take the opportunity to review their goals, reflect on the year and show appreciation by extending thanks to clients, industry contacts and others for their support. 

As part of this planning process and to help you transition to the new financial year, there are some important updates that will greatly impact businesses that employee staff and become effective on 1 July 2024.   

NATIONAL MINIMUM WAGE INCREASE BY 3.75%. 

From 1 July 2024, the National Minimum Wage will increase by 3.75%. 

The Fair Work Commission has announced that minimum wages will increase to $915.90 per week or $24.10 per hour. 

The new National Minimum Wage will apply from the first full pay period on or after 1 July 2024. This means if your weekly pay period starts on Wednesday, the new rates will apply from Wednesday 3 July 2024.

The National Minimum Wage may apply differently to employees on certain awards or based on employment type, age or work capacity. 

Most employees are covered by an award. Awards are legal documents that outline minimum pay rates and conditions of employment in your industry or occupation. If you’re not sure which award applies to you, use: Find my award. 

For more information, please see the Fair Work website

SUPERANNUATION GUARANTEE RISING TO 11.5% 

From 1 July 2024 the superannuation guarantee rate is rising from 11% to 11.5%.  The Superannuation Guarantee (SG) is the percentage of an employee’s earnings that an employer must contribute to their superannuation fund. As of the latest update from the Australian Tax Office (ATO), the SG rate is gradually increasing from 9.5% to 12% by 2025. This is the next step towards reaching the final 12% target. This change aims to boost retirement savings for employees across Australia. 

A number of other key superannuation rates index on 1 July 2024 including the maximum annual concessional contribution limit. We will include details in next month’s newsletter from our Wealth management team on a few of the key changes. 

If your business needs support in reviewing how you will manage cash flow or business planning to be able to sustain the wage increases now required, please reach out to your Trusted Advisor for Tax and Business Advisory services.  

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