Round up of key employment law and tax changes for the 2023/2024 financial year
The commencement of the new financial year brings with it important changes to minimum wages, unfair dismissal regulation and various tax thresholds and rates.
Our Workplace and Employment and Taxation teams have summarised the significant changes employers should be aware of. Depending on your individual circumstances, immediate action may be required from 1 July 2023 to ensure ongoing regulatory compliance.
Modern award rates
In accordance with the 2023 annual wage review decision of the Fair Work Commission, all modern award rates of pay will increase by 5.75%.
This increase will commence from the first full pay period on, or after, 1 July 2023.
National minimum wage
From 1 July 2023, the national minimum wage for adults working full time (38 hours per week) has increased from $812.60 ($21.38 per hour) to $882.80 ($23.23 per hour).
The casual loading for award/agreement free employees remains set at 25%, consistent with the standard casual loading in modern awards.
The above changes apply to all workers in the national system, including:
It is imperative that all employers conduct an annual review of their remuneration arrangements with their employees to ensure ongoing compliance with minimum wage rates.
For those employers in WA who are outside the national system, effective from 1 July 2023:
In the WA private sector this change generally applies to the employees of employers who are not incorporated, such as sole traders and partnerships of individuals.
The high-income threshold for the purposes of the Fair Work Act has, from 1 July 2023, increased from $162,000 to $167,500.
The threshold is relevant for the purposes of:
Western Australia imposes a separate “maximum salary level” for lodging unfair dismissal and denied contractual benefit claims. From 1 July 2023, the level has increased from $181,400 to $187,800. The current figure may be accessed on the Western Australian Industrial Relations Commission website.
The Fair Work Ombudsman has now published the latest version of the Fair Work Information Statement which applies from 1 July 2023.
It is a requirement under s.125 of the Fair Work Act that a national system employer give each employee a copy of the Fair Work Information Statement before, or as soon as practicable after, the employee starts employment.
The Fair Work Information Statement informs employees about several matters including:
Failure to give the Fair Work Information Statement, or the current version of it, is a breach of the National Employment Standards and the Fair Work Act, attracting liability to a civil penalty.
The latest online version of the Fair Work Ombudsman’s Casual Employment Information Statement is available.
It is a requirement under s.125B of the Fair Work Act that employers give casual employees, in addition to the Fair Work Information Statement, a copy of the Casual Employment Information Statement before, or as soon as practicable after, the employee commences employment.
The Casual Employment Information Statement informs employees about several matters, including:
Failure to give the Casual Employment Information Statement, or the current version of it, is a breach of the National Employment Standards and the Fair Work Act, attracting liability to a civil penalty.
From 1 July 2023, the maximum civil penalties applicable to breaches of civil penalty provisions of the Fair Work Act are:
These penalties only affect contraventions that occur on or after 1 July 2023. Prior contraventions will attract the penalties applicable when they occurred.
Civil penalty provisions within the Fair Work Act include those relating to:
The key tax rate and threshold changes for the 2023/24 income year are summarised in the following table:
Employment termination payments (ETP)
Genuine redundancy payments
Superannuation guarantee contributions
Maximum contribution base
|Concessional contribution cap