With the new financial year not too far away, there are some significant changes which you need to be aware of in the month of July.
Commencing on 1 July 2021 the superannuation guarantee has increased by 0.5% to 10%. The plan is that superannuation rate will increase at a rate of 0.5% each year until it reaches 12%. Employers will need to ensure that their payroll systems or payroll providers update the current payroll settings to reflect this.
The federal government also outlined other changes to superannuation in the Federal Budget this year and for more information please click on the link.
Biggest Question?
The biggest question, you are going to be asked is ‘are you taking this out of my pay or are you adding to it”. Why will this be the biggest question – the ABC did an article on June 11 with the headline “superannuation rises could come at the cost of wages – workers may end up paying for their own super rise”.
The second change to your payroll this month is the National minimum wage award increase. It was announced on the 15 June that there would be a 2.5% increase to the national minimum wages. Like last year this will happen in 3 different stages.
How it affects your payroll?
Most awards will increase from the first full pay period in July, this means that if you have a weekly payroll process which commences on a Monday, the new rate will be effective from 5 July.
You can download our Changes Roadmap which gives more information on the Awards which are impacted by the stages.
Call us for a free, no-obligation conversation about how we can help.
