Post COVID the way we work is different and some things will never return to the way they were. For leaders and managers in SMEs this comes with some unique challenges. It is now common to have employees we have not met IRL (in real life) and our entire working relationship has been conducted virtually. So, what happens when either performance or changes in business needs (or ability to pay) means that you need to end an employment relationship?
Businesses may be able to claim an immediate deduction for expenses through the temporary full expensing measure. This allows a business to claim an immediate deduction for new assets if they have a turnover of less than $5 billion, and for second-hand assets if the business has a turnover of less than $50 million. The assets must be first held, used or installed for use between 6 October 2020 and 30 June 2023.
Superannuation contributions will increase from 10.5% to 11% effective July 1, 2023. There will continue to be 0.5% increases each July until 2025 when the superannuation guarantee reaches 12%.
For babies born or adopted after 1st July 2023, there are some important changes to Australian Government funded Parental Leave Pay system. The current entitlement to 18 weeks of parental leave pay at minimum wage will increase to 20 weeks, or 100 days for those who work 5 days a week. This is a family entitlement which means that if you have a partner, they’ll access at least 2 weeks of this leave. Single parents can access the full 20 weeks themselves.
The Fair Work Commission recently announced Australia’s minimum wage will increase from 1 July 2023 to $882.80 per week, amounting to an increase of 5.75%. The new national minimum wage will be $882.80 per week or $23.23 per hour based on a 38-hour work week.
As an employer there are several actions you can take to ensure your business is paying your employees correctly, aligned with the new rates, protecting employees and your business against financial and well-being risks.
