As accountants, we are often asked by our clients about managing wages and pay increases.
Federal Minimum Wage Increases
On 16 June, the Fair Work Commission (FWC) announced a 2.5% minimum wage increase, applicable from the first full pay period on or after 1 July 2021.
The 2.5% increase will apply to all award minimum pay rates, however, the Retail Award rates won’t increase until 1 September 2021, and the following award rates will increase from 1 November 2021:
· Pilots Award
· Cabin Crew Award
· Airline Ground Staff Award
· Airport Award
· Alpine Resorts Award
· Amusement Award
· Dry Cleaning and Laundry Award
· Fitness Award
· Hair and Beauty Award
· Hospitality Award
· Live Performance Award
· Models Award
· Marine Tourism and Charter Vessels Award
· Nursery Award
· Racing Clubs Events Award
· Racing Ground Maintenance Award
· Registered Clubs Award
· Restaurant Award
· Sporting Organisations Award
· Travelling Shows Award
· Wine Award
The new Federal Minimum Wage (FMW) will be $772.60 per week, or $20.33 per hour.
Superannuation Guarantee Increases
From 1 July 2021, the superannuation guarantee levy will increase from 9.5% to 10%. It’s important to check that your payroll or accounting system is updated to reflect this increase.
MySuper products are going to be subject to an annual performance review, with underperforming funds required to report this to their members and provide information on the new, YourSuper comparison tool (due to be released by 1 July 2021).
Funds that underperform for two consecutive years will not be permitted to accept new members until their performance improves.
From an accountant’s perspective, it is important for our clients to understand and manage their wage costs effectively. From a compliance perspective, it reduces stress and anxiety and from a budgeting perspective, accurate wages costs are much easier to manage.
If you are feeling stuck or overwhelmed with effectively managing your wage costs, give our team a call to discuss your specific challenges and how the VBA Tax team can help.
At VBA we specialise in strategic tax advice, offering tax and financial reporting for individual income earners, family businesses, tradies and construction companies.
Victor Bimrose Accountancy Pty Ltd (ASIC No. 1259423) ABN 53 010 957 294 is a Corporate Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361.
Mark Foxley-Conolly (ASIC No. 1259421) is a Limited Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361
General Advice Warning: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.If you have employees, you need to be across these important updates
