Experts give a rundown of what HR should note as new business costs
After the financial year 2022-23 got under way from July 1, prices have increased for many businesses. From wages, superannuation, energy prices, and even thresholds of workplace cases, HRD has compiled a list of what employers need to take into account as new business costs.
Recently, Australia’s Fair Work Commission (FWC) increased the National Minimum Wage (NMW) by 5.2%. From $20.33 an hour, the NMW is now $21.38 an hour, amounting to $40 a week.
The Commission also increased the modern award minimum wages by 4.6% wherein, according to the Victorian Chamber of Commerce and Industry (Victorian Chamber), those who earn more than $869.60 a week would receive a 4.6% increase, while those earning less would get $40 more a week.
“The increases for the aviation, hospitality and tourism industry Awards are delayed until 1 October due to COVID-19 impacts,” the Chamber noted.
Aside from the wage increase, the Victorian Chamber said that the superannuation guarantee (SG) also rose to 10.5% from the previous 10%. It noted that the SG would continue to increase by 0.5% every year until it reaches 12% on 1 July 2027.
“The $450 superannuation eligibility threshold is also removed,” the Chamber said. “Where previously those who earned less than $450 a month weren’t entitled to superannuation payments, employers will have to pay superannuation regardless of how much they earn that month.”
According to the Victorian Chamber, the fee to apply to register an Australian proprietary company also increased to $538 from $512. Meanwhile, the cost of reserving a company name rose from $52 to $55.
“Those registering or renewing a business name for 12 months will pay $39 from 1 July (up from $37), while those registering or renewing a business name for three years will pay $92 (up from $88),” the Chamber said.
“Annual review fees will also increase slightly, as will late payment fees depending on their lateness,” it added.
Adding up to the list of price increases includes electricity bills as it also started to have higher charges on 1 July, according to the Victorian Chamber.
The Chamber said that the price cap on retailers, known as the default marker offer (DMO), increased in Victoria by about 5% for residential and small business owners.
According to the Victorian Chamber, the Australian Taxation Office (ATO) showed its areas of scrutiny for small business tax returns for the year 2021-22. These include:
Meanwhile, employment lawyers reminded companies and workers alike that essential changes in the workplace relations space have recently taken effect.
Michael Byrnes, a partner at Swaab, and Katrina Seck, the firm’s senior associate, said that the income threshold for unfair dismissal cases would be modified.
According to Swaab’s media release, “the high-income threshold for unfair dismissal cases will increase to $162,000 per annum (from the present $158,500 per annum).”
Byrnes and Seck also said that “the compensation limit will be $81,000 (equivalent to 6 months of the revised high-income threshold amount) for dismissals occurring on or after 1 July 2022.”
They also noted that “the filing fee for unfair dismissal, general protections and bullying and sexual harassment at work applications will increase to $77.80.”
