As the EOFY sales are in full swing and the year is wrapping up, a new financial year also brings change that fuel businesses must understand and get ready for now.
SUPERANNUATION CHANGES
Change is coming to superannuation and its operation in business with an increase in the superannuation guarantee rate to 12% from 1 July 2025. Now is the time for all businesses to understand what is changing and what they need to do to remain compliant.
New SG Rate from 1 July 2025
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. The rate is now in the incremental increase stage where the rate is increasing 0.5% per year with the rate to rise to 12% from 1 July 2025. This increase is the last of the scheduled increases.
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 11.5% to 1% 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).
Payday Super
Payday Super is another change coming to superannuation. This initiative is on the horizon and is in an active consultation phase now while the final shape and requriements are determined.
This change is coming, but does not come into effect until next year (1 July 2026).
For more information see; https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/payday-superannuation
Superannuation Record Keeping Requirements
Remember Superannuation comes with particular record keeping requirements. See; https://acapmag.com.au/2024/06/record-keeping-requirements-part-6-superannuation/ for more.
RIGHT TO DISCONNECT CHANGES
The new financial year also sees the extension of the Right to Disconnect Laws to Small Business.
As ACAPMA has covered extensively the protection of employees for not responding to contact outside of work hours, has been long enshrined in Australian law in the provisions around ‘all time worked is time paid’ and adverse action for out of work hours conduct.
Despite this long enshrinement the Right To Disconnect Laws drew these elements together to specifically protect employees from being punished or adversely effected for disconnecting from work outside of work hours.
These provisions, in their current shape, have applied to most businesses for almost a year now, but will be formally extended to Small Businesses from 1 July 2025.
For more on Right To Disconnect see;
TOBACCO CHANGES
As covered by ACAPMAg earlier in the year, ahead of the changes to the national tobacco laws that come into effect on 1 July 2025, the Australian federal health department has released guidance information for retailers and consumers explaining the changes and the new responsibilities for retailers of tobacco products.
New laws and transition
New laws came into effect on 1 April 2024 that have altered the legal requirements for tobacco products and packaging. There has been a transition period that allowed for the rundown of old stock and the roll out of new (compliant) stock. This transition period is coming to an end, with the full force of the law to apply from 1 July 2025.
From 1 July 2025, all tobacco products sold, offered for sale and supplied in Australia must comply with the new tobacco laws.
The new legislation is the Public Health (Tobacco and Other Products) Act 2023 and the Public Health (Tobacco and Other Products) Regulations 2024. These can be accessed at health.gov.au/tobacco-legislation.
Other new legal requirements also apply, including on advertising and sponsorship of tobacco products. Separate guidance on these requirements is available at health.gov.au/tobacco-control.
What is changing?
The new laws require the removal of certain terms from product names and descriptions (such as smooth or gold) as well as consistent shape, filter, pack size and number of all products. This removes some of the more obvious differentiation points between products and brands.
In addition the new laws have banned certain ingredients and flavours.
The changes apply to all tobacco containing products including; cigarettes, roll your own tobacco, pipe tobacco, shish that contains tobacco, cigars.
Retailer Responsibilities
“ACAPMA reminds members that as tobacco retailers it is imperative that they understand these restrictions and changes in detail and review all onsite stock to ensure that it is compliant with the new requriements, and return to the manufacturer any old non-compliant stock before the 1 July deadline”, explains ACAPMAs Elisha Radwanowski.
“In addition retailers should ensure that staff are informed about the changes and armed with the information they need to communicate to customers in order to minimise confusion and aggression”, continues Elisha.
Guides
To assist Retailers in complying with the requriements, and communicating them to customers, the federal Health Department has released two Guides;
These Guides include general information, frequently asked questions and instructions on how to report non compliant tobacco products.
HERE TO HELP
HR Highlights are things to consider, implement and watch out for in your business. They are provided as general advice and you should seek further advice on your situation reaching out to ACAPMA Employment Professionals via employment@acapma.com.au its free for members.
Click here to apply for ACAPMA membership.
Elisha Radwanowski BCom(HRM &IR)
ACAPMA
