Payroll Updates | September 2022
Are you across all the recent payroll and employment law updates, including minimum wage, super increase and STP?
Minimum Wage Increase | July 2022
Following the Fair Work Commission (FWC) Annual Wage Review 2021-22, from July 2022, the National Minimum Wage increased by $40 per week, an increase of 5.2%. Award minimum wages increased by 4.6%, which were subject to a minimum increase for adult award classifications of $40 per week and based on a 38-hour week for a full-time employee. Other award wages, including junior, apprentice and supported wages that are based on adult minimum wages, also received a proportionate increase.
There will also be some award rate increases starting in October, with the adult minimum wage in some aviation, tourism and hospitality sectors increasing from 1 October 2022. Learn more at 1 October 2022 minimum wage increase.
Superannuation Increase | July 2022
There were several changes to super legislation which started in the new year; for further information on each of the below, head to our 2022 Super Legislation Changes article.
- Superannuation Guarantee Set to Increase
- $450 Super Guarantee threshold to be abolished
- Increase to the releasable amount for the First Home Super Saver Scheme
- Reduction in age for Downsizer Contributions (from 65 to 60 years)
- Work Test abolished for retirees in the 67-74 age bracket
- Bring-Forward Rule Age Increase
NOTE: Your first quarterly superannuation payment at the new rate will be due in October 2022.
Tax Tables
While most tax tables remain the same for the 2022-23 financial year, the annual indexing of the study and training support loans have been applied. For current withholding rates, check the ATO’s study and training support loans and working holiday makers’ tax tables.
If you use online payroll software, the updates will be taken care of already. But if you process payroll manually, you’ll need to factor in the new rates for these tax types.
Unpaid Pandemic Leave Reinstated for Some
During COVID-19, Schedule X was added to most awards to allow for two weeks of unpaid pandemic leave. The schedule expired in June 2022 but has been reinstated for some awards:
- Aged Care
- Ambulance and patient Transport
- Aboriginal and Torres Strait Islander Health Services
- Health Professionals and Support Services
- Supported Employment Services
- Social, Community, Home Care and Disability Services
Employees who no longer have unpaid pandemic leave available in their awards can take personal leave if unwell or use annual leave if they need to isolate themselves but are otherwise well enough to work. They can also use carer’s leave if they need to look after unwell family members.
Review Your Payroll
Now is an excellent time to assess your payroll systems in readiness for the busy summer season. If you need assistance, contact the team at Kennedy Cross to help check your payroll setup, award provisions, employee agreements and payroll costing. We can also advise on the software you are using and ensure it is ready for ATO STP Phase 2 reporting – due for all employers by 31 December.
Please note, these updates were valid as at date of publishing, 14th September, 2022
