June 30, 2022
HR changes for the new financial year: 5 things you need to know
The start of a new financial year also brings new changes to Human Resources. We explore five key ones likely to impact your workplace.
1. Super changes once again
From 1 July 2022, the Superannuation Guarantee Contribution (SGC) is going up again. This time to 10.5%. You may have only just got used to paying 10% super but now you’ll have to find a little extra.
The SGC is now slated to go up by 0.5% every year until we reach 12% in FY2026, which is ultimately where the government wants it to be.
Other changes to super include:
- The end of the $450 minimum threshold. You now have to pay super to almost all employees, including minors who’ve worked more than 30 hours a week.
- An increase to the contribution base to $60,220 a quarter. This effectively means once someone’s salary hits $240,880 a year you no longer have to make super contributions on that portion of their salary over the contribution base.
- The super stapling provisions now apply (they actually began late last year but it’s worth remembering them.)
2. The new minimum wage is in effect
From 1 July 2022, the National Minimum Wage goes up 5.2% or $40 a week. That means the least you can pay anyone is $21.38 an hour or $812.60 a week for a 38-hour working week.
This is accompanied by changes to a pay increase to workers covered by minimum Award wages of 4.6% or $40, whichever is higher.
3. Unfair dismissal threshold raised again
High-income earners don’t have access to our federal unfair dismissal laws and can’t bring a claim in the Fair Work Commission. However, the cap for what constitutes a high-income earner has been raised again, this time from $158,500 to $162,000.
Just remember as a human resources professional, exceeding the threshold doesn’t mean an employee has no rights if you terminate their employment. They can still access the Fair Work Act’s general protection provisions.
The maximum amount of compensation the FWC can award has also been raised by $2,000 – from $79,000 to $81,000.
4. Changes to tax
From 1 July 2022, you won’t have to report to the ATO when an employee who receives shares under an employee share scheme leaves your business.
If you run a professional services firm, the ATO has said it will be changing its approach to professional services profits and how they flow through to the business owners – ie partners and principals. If you’re in any doubt, check with your accountant.
5. New entitlements for some Award workers
New rules apply to workers covered by the Social, Community, Home Care and Disability Services Award. From 1 July, the minimum number of hours a casual home care worker or part-time employee covered by the Award can be paid for has been lifted from one hour to two hours.
For part-time social and community services workers, the minimum has been lifted to three hours. However, if they’re performing disability services work the standard two-hour minimum applies.
Are you FY23 ready?
As FY23 begins, there are plenty of Human Resources -related changes that businesses need to be on top of. If you have any questions regarding the changes or are keen to find out how they could impact you or your business, speak with one of the Catalina Consultant team members today.