Changes to Wages and Superannuation Payments
As we kick off the new financial year, there are some important changes to wages and superannuation payments that employers need to know about. Please take a moment to read through the following details carefully.
Starting 1 July 2024, the Australian Taxation Office is increasing the Super Guarantee rate from 11% to 11.5%. This new rate applies to all wages paid on or after 1 July 2024, even if some of those hours were worked before that date as part of the usual pay period. For example, if an employee is paid fortnightly, with the pay cycle running from Monday, 24 June to Friday, 5 July 2024, and payment processed on Monday, 8 July, the new 11.5% super rate will apply to the entire pay period.
Make sure to update your payroll system before 1 July to accommodate this superannuation increase. We’re here to help with any questions about this change. For specific queries on how to implement it in your payroll systems or detailed super/taxation issues, please contact your payroll provider, accountant, or the Australian Tax Office. If you’re using the new HR Central in-app contract templates, the superannuation rate will update automatically. If you’re still on manual templates, it won’t. Reach out to your Client Manager if you need new in-app contracts created.
Today, 3 June 2024, the Fair Work Commission announced the Annual Wage Review 2024-2025. The annual wage increase is 3.75%, affecting both the National Minimum Wage and the minimum pay rates under Modern Awards. These changes take effect from the first full pay period on or after 1 July 2024. Employees under an award or registered agreement must be paid at least the minimum pay rates in their award or agreement, including penalty rates and allowances, which may be higher than the National Minimum Wage. We will inform you as soon as the new pay guides are released by Fair Work, typically around mid to late June.
Once Fair Work releases the updated pay guides, usually mid to late June, we will notify you. Review your employees’ wage rates when you receive this notification, and adjust them if necessary to meet the new award minimum. As always, if you have any questions or need support with implementing these changes, please don’t hesitate to reach out.