1st July 2021 is the start of a new financial year and there have been changes made for the small business owner in Western Australia
Minimum Wage Increase:
Fair Work Commission has set a national minimum wage rate for the award free employees and this wage rate is reviewed every year by the commission.
Fair Work has announced a hike in the minimum wage rate for a full-time award free employee. It has been increased by 2.5% and this is effective on or after 1st July 2021. A full-time employee will now receive a minimum wage of $20.33 per hour or $772.60 per week.
The commission has also put a hold on the wage increase for few sectors most affected by the COVID-19 Pandemic. The employees who are already getting paid more than their new minimum wage rate – for them this will not be applicable.
Superannuation Guarantee Contribution Increase:
The Superannuation Guarantee (SG) has been increased to 10% from 1st July 2021.
As per the Australian Government, an employer is liable to pay a minimum amount based on the employee’s income. They must pay a fixed percentage of an employee’s income into his/her superannuation account.
Superannuation or Super is mandatory for all the people working and residing in Australia. This applies to all the Casual, part-time, and full-time employees. The withdrawal of Super can be done only under certain circumstances like when you retire or turn 65 years old.
An employer must pay Super for the employees if:
An employee is above 18 years and in a calendar month, he is getting paid $450 or more (before tax).
An employee is under 18 years of age and in a calendar month, he is getting paid $450 or more (before tax) and is working more than 30 hours a week.
An employer must be aware of the changes made by the commission and accordingly, they need to be prepared to make any adjustments to the employee’s wages and the Super. An employer will be legally obliged if there is a failure to satisfy the new minimum wage rate.
For more information on wage increases please visit the Fair work website and for Super details please visit ATO website.
*NETCorp is not an accounting firm, HR specialist, or financial advisors and therefore we encourage you to do your on fact finding research and not take what has been stated in this article as factual or true