Get Ready for the New Financial Year 2024-25!

As we approach the new financial year starting 1 July 2024, it is crucial for all businesses to be aware of upcoming changes that will impact your business operations.

The Fair Work Commission has announced a 3.75% increase to the National Minimum Wage and minimum award wages effective 1 July 2024.  This increase aims to uphold fair compensation practices across industries, reflecting economic adjustments.

It is important to make adjustments to ensure compliance with industry standards and legal requirements, particularly if your business is covered by a modern award or an industrial instrument. 

Further, the high income threshold will rise to $175,000 per annum.  The threshold plays a pivotal role in determining the eligibility of employees for certain entitlements and protections, such as unfair dismissal for employees who are not covered by an industrial instrument.  This threshold is also particularly important for employees with a guarantee of annual earnings.

In light of these updates, we strongly advise all employers to undertake a comprehensive review of their payroll practices to stay compliant and support your team effectively. Here is what you can do:

1. Review wage rates: familiarise yourself with the updated minimum wage rates applicable to your industry to ensure all employees are fairly compensated according to these adjustments.
   

2. Check modern awards: If your business is covered by a modern award, verify if there are any specific rate increase that apply to your industry or workforce.
   

3. Communicate changes effectively: Keep your team informed about the upcoming changes in wages and thresholds.  Transparency fosters trust and ensures everyone is on the same page.
   

4. Update employment contracts and/or provide written confirmation:  Inform the employees in writing of any adjustments and/or, if necessary, update employment contracts to reflect the new wage rates or any changes in high income threshold or other legal requirements.
   

5. Seek professional guidance: For tailored guidance on implementing these changes within your business context, or if you are unsure about how these changes may affect your business, consider consulting with legal professionals.
   

Staying proactive and informed ensures your business remains compliant and supportive of a fair and productive work environment. 

Together, let’s navigate these changes together for a successful year ahead!

Disclaimer: This article serves as a general guide only and does not constitute legal advice. The information is current as of the publication date but may be subject to future legislative changes.