A new financial year has dawned and with it comes new wage rates, new super rates, changes to the awards, changes to visa restricted staff hours and changes to the statutory information statements that must be provided to staff.  As FY24 commences we explore when the new rates apply (spoiler alert it is not necessarily from 1/7), why some base rates are lower than the minimum wage and other changes that businesses need to address now, to avoid errors in the future.

 

New Wage Rates

The release of the National Wage Case  (https://acapmag.com.au/2023/06/national-wage-case-2023-implications/) will have a direct impact on the Award Rates for all employees.  For Agreement covered employees there is a need to review the Agreement Rates and ensure they are ‘keeping pace’ with the Award that they are tied to.

The new wage rates will apply from the first full pay period on or after 1 July 2023.

“This means the first pay period that does not include a single day in June.  So if for example you run a weekly payroll from Thursday to Wednesday, then this year the current rates will apply for the Pay Period of 29/6/2023-5/7/2023 and the new rates will apply for the Pay Period from 6/7/2023-12/7/2023.  Even though the Pay Period of 29/6/2023-5/7/2023 has most of its days in July it is not a FULL pay period AFTER 1 July, so the old rates apply”, explains ACAPMAs Elisha Radwanowski.

“There is often confusion at this time of the year, particularly when the ‘Minimum Wage’ is so highly publicised.  The ‘Minimum Wage’ is tied to a specific classification in a specific award.  That is now the C13 Classification, it used to be the C14 Classification.  The result is that there are classifications in other awards that have base rates that are actually lower than the widely publicised $23.23 ‘Minimum Wage Hourly Rate’.  For example the Base Rate for R1 Classification in the Vehicle Repair Service and Retail Award 2020, which is the Driveway Attendant classification, is $22.61 per hour from the first full pay period on or after 1 July 2023.  This difference usually reflects the fact that those on the minimum wage are unlikely to get the benefit of loadings and penalties included in the modern awards.  While it is clear and understood in employment circles this difference can cause confusion with payroll and with staff, so it is important to be ready to respond to the question of ‘hey isn’t this below minimum wage'”, adds Elisha.

Award Changes

It is also important note that the Awards are updated with the new rates, and new provisions (like the consolidation of the paid parental leave and days pay) at this time of the year.

“We recommend all businesses update their internal copies of the applicable modern award to ensure that they are not inadvertently referring to an old wage table, which is a common cause of oversight errors”, adds Elisha.

 

Fair Work Information Statement Updated

It is a requirement that all staff are provided with a copy of the Fair Work Information Statement (FWIS) on commencement.  The FWIS summarises key information on employee rights.  The FWIS is updated each year and the most recent version must be provided to the commencing staff.

“There is a requirement for businesses to provide the FWIS to staff and for them to be able to show to an inspector that they have provided it.  This is typically done with the New Starter Pack documents or new starter checklists.  It is vital that the most recent FWIS is provided and that it is provided to all staff on commencement, penalties apply for non compliance”,  continued Elisha.

The latest copy of the FWIS can be found at:  https://www.fairwork.gov.au/employment-conditions/national-employment-standards/fair-work-information-statement#the-FWIS 

In addition to the requirement to provide the FWIS, if the employee is casual they must also be provided with the Casual Employment Information Statement (CEIS).

The latest copy of the CEIS can be found at: https://www.fairwork.gov.au/employment-conditions/national-employment-standards/casual-employment-information-statement

Superannuation Changes

As outlined in the Superannuation Guarantee (Administration)Act 1992 (Cth) and brought into effect with the 2021 Budget,  superannuation guarantee (SG) rate increased from 9.5% to 10% from 1 July 2021, then increased a further 0.5% to 10.5% from 1 July 2022.

From 1 July 2023 the Superannuation Guarantee Rate has increased again to 11%.

As per the Act the Superannuation Guarantee rate is now in the incremental increase stage and as such will increase 0.5% per year for another two years with the increases are currently set to cease when the superannuation rate reaches 12% on 1 July 2025.

Where staff are employed on a ‘salary plus super’ basis the change is a simple one to make, the business just has to go into the payroll system and change the superannuation % from 10.5% to 11% and communicate to the employee the change (this can be done as a separate letter or as part of the annual Confirmation of Employment process).

Visa Hours Changes

From 1 July 2023 student visa holders will be limited to working no more than 48 hours in a fortnight.

The cap on students visa holders working has been one that has caused protest and anguish from the students themselves with the argument being made that 48h is not enough to make facing the current spiralling cost of living, and that the prolonged removal of the cap to hours through COVID has proven that students can manage both work and their studies.

Despite this opposition the cap is set to return from 1 July 2023, albeit at the higher 48 hours per fortnight not the previous 40 hours.

“The penalties for breaches to the cap apply to the business and to the employee.  They are severe and for the business are proposed to increase further.  Penalties can be applied even if the business is unaware of the breaches, because for example, the employee is working 47h with this business but another 30h with another business for ‘cash’” explains ACAPMAs Elisha Radwanowski.

“Anecdotally members are telling us that they are hearing from their own staff that there are businesses out there that are offering students ‘cash off book’ positions, and that they are rejecting hours with this business because they feel they have to prioritise their ‘cash’ job because it can offer them more hours”, continues Elisha.

“This situation is wrong and it is illegal.  Unfortunately with the pending return of the cap it is likely to increase, as is the distortion to competition that comes from such practices, all while available labour contracts further”, added Elisha

Student visa holders who were ALREADY working in aged care on 9 May 2023 will be exempt from the cap until 31 December 2023.

“With the cap returning Members are advised to ensure that they are communicating with their staff on the restrictions and their responsibilities, particularly around declaring all work done at other businesses.  This is a vital part of the process to ensure that the business does not end up penalised if the employee decides to breach their hours by working at another business without this employers knowledge”, explains Elisha.

“As part of the 2023/2024 Guide Pack ACAPMA will circulate to all members the Visa Restrictions Guide which includes the template declaration and review forms for visa restricted staff, which we really recommend members reissue to staff”, concludes Elisha.

Can I get some help?

As always ACAPMA Members can gain access to further information or assistance with this or any other employment issue via employment@acapma.com.au

 ACAPMA members are reminded that the ACAPMA Employment Professionals are available to assist with employment, safety and training compliance. For more information email employment@acapma.com.au

Elisha Radwanowski BCom(HRM & IR)
ACAPMA

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