There are significant changes that could have a direct or indirect impact on your business as the new fiscal year draws near.
Changes to the eligibility for superannuation as well as increases to the national minimum wage, award minimum pay, company fees, and business name fees will take effect on July 1, 2022.
Here is a summary of the major changes that will take place and are likely to affect business owners:
Note: As per ATO, the changes depend on when your employee is paid, not when the income is earnt. This means the new rate will need to be applied to any payments of salary or wages made on and after 1 July 2022, even if some or all of the relevant pay period is before 1 July.
Changes to superannuation laws
The super guarantee (SG) rate will rise from 10% to 10.50% as of July 1, 2022. The transitional SG rate for Norfolk Island will rise from 6% to 7%. This is consistent with the present plan of the Federal Government to raise the SG rate by 0.5 per cent a year until it reaches 12 per cent by 2025.
In addition, starting on July 1, 2022, businesses will be bound to pay super for all employees, regardless of their wages. This is due to the removal of the $450 monthly eligibility requirement for the super guarantee (SG). For employees under the age of 18, superannuation is only required if they work more than 30 hours per week.
The national minimum wage increase
The National Minimum Wage will increase by 5.2 per cent, or $40 per week, beginning on 1 July 2022. $812.60 per week or $21.38 per hour will be the new National Minimum Wage.
Beginning with the first full pay period on or after July 1, 2022, the new national minimum wage will be in effect. This implies that starting on Monday, July 4, 2022, the new rates will be in effect if your weekly pay period begins on a Monday.
The minimum award pay will rise by 4.6 per cent, with a minimum increase of $40 per week for award classifications based on a full-time employee working a 38-hour workweek.
This means that minimum award salaries below $869.60 per week will see an increase of $40 and an increase of 4.6 per cent above $869.60 per week.
Award increments take place in two stages. Beginning with the first full pay period on or after July 1, 2022, most awards will increase. The increase will take effect on October 1, 2022, for several awards in the aviation, hotel, and tourism sectors.
Company and business name fees increase
In line with an increase in the Consumer Price Index (CPI) for the March quarter, the Australian Securities and Investment Commission will increase company and business name fees from 1 July.
The application fee for registering an Australian company will increase from $512 to $538. The charge for registering a business name will rise from $37 to $39 for one year and from $88 to $92 for three years.
Visit the ASIC website for a full list of fee increases.
Ban on single-use plastics (WA)
Enforcement of Stage 1 regulations for Western Australia’s ban on single-use plastics (except for single-use cups, which will start on 1 October 2022) will start on 1 July 2022. Businesses that use single-use plastics should ensure they are prepared for the change.
Find out more about WA’s ban on single-use plastics.
Motor Vehicle Information Scheme
The Competition and Consumer Amendment (Motor Vehicle Service and Repair Information Sharing Scheme) Act 2021 mandates that starting on July 1, 2022, Australian mechanics will be able to purchase motor vehicle service and repair information at a fair market price.
All Australian auto mechanics will have fair access to information required to maintain and fix automobiles under the mandated programme. This comprises data and codes for computerised systems from a car manufacturer, as well as software upgrades to connect a new spare part with a car.
Access to vital service and repair information used to be restricted to auto manufacturers and their affiliated repairers. This made it impossible for many freelance mechanics to compete fairly for auto maintenance and repairs. For consumers, it resulted in higher expenses, inconvenience, and delays.