Wage and Superannuation Updates leading into the end of financial year 2022

SUPERANNUATION GUARANTEE CHARGE (SGC)

For Employers…

The quarterly superannuation contribution for the June 2022 quarter is due and payable by the 28th July 2022. BUT are you aware that this is a tax deductible expense and can be claimed in your 2022 tax if it is received by the superannuation fund before 30 June 2022?

This means that superannuation payments can be made early and we strongly suggest that if you want to take advantage of this tax deduction opportunity that superannuation payments are made this week, as to ensure they are received and processed on time.

The SGC amount increases to 10.5% from the 1st of July 2022. Most payroll software will complete this new calculation automatically, but it is worth double checking when your first payrun of the new financial year is done, or, for employees, when you receive your first payslip.

WAGE INCREASE

GETTING READY

You may already be aware of the outcome of the Fair Work Commission (FWC) annual wage review, from this came two major announcements

  • The National Minimum Wage will increase by $40 a week – an increase of 5.2%
  • The Award Minimum Wages will increase by 4.6%

The FWC is currently working on updating their tools and website and will provide more details on the pay rate increases for each award. We will keep you informed when these details are released.

WHO DOES THIS APPLY TO

The National Minimum Wage increase applies to employees not covered by an award or registered agreement – however most employees are covered by an award. With the announcement the minimum award wages are increasing as well;

– above $869.60 per week, will get a 4.6% increase
– below $869.60 per week, will get a $40 increase

These increases apply from the first full pay period on or after 1 July 2022.

There are some good examples of how this applies to different employees on the Fair Work link below.

THIS ISN’T FOR ALL AWARDS – YET

Most awards will increase from the 1st July – some increases don’t come into effect until 1st October 2022. They include;

Aviation

  • Aircraft Cabin Crew Award
  • Airline Operations – Ground Staff Award
  • Air Pilots Award
  • Airport Employees Award
  • Airservices Australia Enterprise Award 2016

Hospitality

  • Hospitality Industry (General) Award
  • Registered and Licensed Clubs Award
  • Restaurant Industry Award

Tourism

  • Marine Tourism and Charter Vessels Award
  • Alpine Resorts Award

FINALISING YOUR SINGLE TOUCH PAYROLL

Single Touch Payroll finalisation declaration must be submitted to the ATO by 14 July 2022 so employees may prepare their individual tax. Before finalising, please ensure your STP information is correct by reviewing all pay items reported, fix any incorrect pays, confirm all employee details are correct and check that no pay runs have been rejected through STP during the financial year, it is also important to ensure the ATO has been notified about terminated employees.

 

As always if you are unsure of anything or would like any help in preparing for these changes in your business, please give us a call on 02 6652 8788. We are here to help.

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