Wage and Superannuation Increase on 1 July
Wage and Superannuation Increase on 1 July – Action required for all businesses who employ staff!
The Fair Work Commission last week handed down its annual wage review decision. The Commission has decided to increase the minimum wage in all modern awards by 5.75%. These increases will take effect from the first full pay period commencing on or after 1 July 2023.
The National Minimum Wage has also been increased from $21.38 per hour to $23.23, an increase of 8.65%. In addition, from 1 July 2023, employer superannuation contributions will rise by 0.5% to 11%.
We know many businesses are currently paying above award rates to attract and retain staff. However, to maintain the competitive gap, it may still be necessary for this wage rise to be passed through to employees.
These are critical and substantial changes for all businesses as they come at a time when sales are declining in some sectors as consumer spending is decreasing. It is critical that small businesses assess their current salary budgets and staffing levels. Gaining efficiency in your business model to reduce costs or raising prices are the only ways to adequately protect business profitability. These actions require careful consideration before implementing and time to take effect.
If you would like assistance with setting a forecast for 2024, please reach out to us for support.
The Macro Group Limited AFSL:485843 Tax Agent Number 24 76 5236.
The information in this article contains general information only. We have not taken into consideration any of your personal objectives, financial situation or needs. Before taking any action, you should consider whether the general advice contained in this communication is appropriate to you having regard to your circumstances and needs, and seek appropriate professional advice if you think you need it. We recommend that you consult a licensed or authorised financial adviser if you require financial advice that takes into account your personal circumstances.