Super, Wages and Other Changes Queensland businesses need to be aware of
Some business requirements will change on July 1.
Get up to speed on what it means for your business and where to access support.
Eligibility for super change
On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it will remove the $450 per month threshold to expand coverage of super guarantee to eligible employees regardless of their monthly pay.
From 1 July 2022, you'll need to pay super guarantee contributions to an employee's super fund regardless of how much they are paid. Employees will still need to satisfy other eligibility requirements. This includes other workers who are eligible for super including contractors.
How is super guarantee rate increasing
On 1 July 2022, the super guaranteed rate will rise from 10% to 10.5%.
For salary and wage payments made on or after 1 July 2022, the minimum superannuation guarantee contribution rate of 10.5% will need to be applied.
It's important you pay your workers the correct amount of super. The ATO has released tools to assist employers:
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To work out how much super you need to pay for your employees after the rate increases, you can use ATO's super guarantee contributions calculator.
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To help you determine if your employees are eligible for super, including any contractors treated as employees for super purposes, you can use ATO's superannuation guarantee eligibility decision tool.
The super rate is scheduled to progressively increase to 12% by July 2025.
What are the national and award minimum wage increases
In June, the Fair Work Commission (FWC) handed down its decision regarding an increase to the National Minimum Wage. The Panel has awarded a comparatively complex, multi-part increase as follows:
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A $40 per week / 5.2% increase to National Minimum Wage (NMW).
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For all other modern award wage rates, a 4.6% increase or $40 per week, whichever is the higher. In the Panels words:
In effect, modern award minimum wage rates above $869.60 per week will receive a 4.6 per cent adjustment, wage rates below $869.60 per week will be adjusted by $40 per week.
This increases the National Minimum Wage as follows:
|
2021 |
2022 |
|
$20.33 per hour |
$21.38 per hour |
|
$772.60 per week |
$812.60 per week |
|
$40,252 per year |
$42,336 per year |
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The increases commence from the first pay period after 1 July for the overwhelming majority of modern awards (at least 110 modern awards).
The exception is 10 specified modern awards in the aviation, tourism and hospitality sectors. The increases will come into effect in respect of the following awards from 1 October 2022 (or a three month delay):
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Aircraft Cabin Crew Award 2020
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Airline Operations – Ground Staff Award 2020
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Air Pilots Award 2020
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Airport Employees Award 2020
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Airservices Australia Enterprise Award 2016
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Alpine Resorts Award 2020
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Hospitality Industry (General) Award 2020
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Marine Tourism and Charter Vessels Award 2020
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Registered and Licensed Clubs Award 2020
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Restaurant Industry Award 2020.
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.
Vehicle registration changes
Light vehicle registration fees will be increased by 2.5 per cent in line with the government indexation rate.
Further assistance
Have questions about how these changes could impact your business?
We’re here to help.
Contact CCIQ’s HR Services Employer Assistance Helpline for support on 1300 731 988 or email [email protected]