Preparing for the New Minimum Wage Increase: Essential Information for Australian Businesses

As the new financial year approaches, businesses across Australia need to gear up for some big changes in wages. From 1 July 2024, the national minimum wage will increase to $24.10 per hour, which adds up to $915.90 per week—a 3.75% rise. Plus, the Superannuation Guarantee will go up to 11.5%.

These changes aim to boost workers’ living standards, but they also bring new challenges for business owners, especially small and medium-sized enterprises (SMEs) in Northern Beaches.

Understanding the Impact

For SMEs, these adjustments mean higher operational costs. Here’s what you need to know:

  1. Wage Increase: With the minimum wage bump to $24.10 per hour, it’s time to revisit your payroll budget. This hike affects not just base pay but also overtime, penalty rates, and other wage-related calculations.
  2. Superannuation Guarantee: The rise to 11.5% in the super guarantee means more contributions to employees’ retirement funds, adding to your overall costs.

Together, these changes amount to a 4.25% increase in employment costs.

How to Manage the Minimum Wage Increase

Here are some friendly tips to help you navigate these changes:

  1. Review Your Budget: Adjust your payroll budget to cover the increased wage and superannuation rates. If you need help, our team at Wistax can assist you in setting up or revising your budget system.
  2. Update Payroll Systems: Make sure your payroll software is up-to-date with the new rates. If you need assistance, we’re here to help optimize your payroll system.
  3. Communicate with Your Team: Keep your employees in the loop about the changes. Clear communication helps maintain trust and morale.
  4. Seek Professional Advice: These changes can be tricky to navigate. Our experts can provide tailored advice to help you comply with regulations and optimize your business planning.

We’re Here to Help

Running a small or medium-sized business in Northern Beaches? Wistax is here for you. We offer comprehensive support, from budgeting and payroll adjustments to compliance and strategic planning, ensuring your business thrives despite the increased costs.

Conclusion

The upcoming changes to the minimum wage and superannuation guarantee mark a significant shift in the Australian employment landscape. While these adjustments aim to improve workers’ welfare, they also present new business challenges. By planning and seeking expert advice, you can handle these changes effectively and keep your business on the path to success in the new financial year.

Reach out to us today to see how we can support your business through this transition. Let Wistax help turn these challenges into opportunities for growth and success.

minimum wage increase

All WISTAX today for an initial free 15-minute telephone consultation with John and his team on 1800 841 312 if you want to join our fast growing accounting franchisee business