Heads up—there are some new rules about business registration and obligations designed to protect workers, promote sustainability, and adapt to an evolving economy. With these shifts, it’s important to stay in the loop to make sure your business stays compliant and ahead of the game.
This article highlights the key changes impacting Australian businesses, from payroll updates to shifts in casual employment laws. Whether you operate a bustling cafe, a tech startup, or a small business, being informed about these impending changes will allow you to plan.
Consider aspects such as the instant asset write-off, potential tax rate changes, and any planned energy relief measures as part of your broader business planning for the new financial year.
Minimum wage increase
Minimum wage increases, influenced by the recent federal budget, will take effect for both national and state industrial relations systems. These changes are crucial for small businesses and employees alike, ensuring that all parties adjust to the updated financial requirements.
This adjustment in the wage floor reflects broader economic policies intended to enhance living standards across various sectors.
National minimum wage increase
From 1 July 2024, the national minimum wage will increase by 3.75%, reaching $915.90 per week or $24.10 per hour. This change impacts businesses under the Fair Work federal industrial relations system and requires adjustments to payroll and potential pricing strategies.
State minimum wage increase
Businesses operating under the WA state industrial relations system, like sole traders and unincorporated partnership, will also see an increase in the minimum wage to $917.80 per week or $24.15 per hour. Refer to the Wageline website for specific details on award summaries and rates for award-free employees.
Those operating under the Federal Award are encouraged to refer to the Fair Work website for detailed information. Businesses falling under the WA state industrial relations system can find specific guidance on the Wageline website.
Superannuation Guarantee (SG) rate adjustment
Along with the minimum wage increase, 1 July 2024, will also see a rise in the superannuation guarantee rate. The rate will go up from 11% to 11.5%, requiring employers to contribute a larger portion toward their employees’ retirement savings. This super guarantee rate increase is part of a staged increase announced by the Federal Government.
The Australian Taxation Office (ATO) provides detailed information about the super guarantee rates and thresholds on its website, allowing businesses to prepare for this adjustment adequately. Small business owners should pay close attention to these changes to ensure they meet their employer obligations regarding superannuation contributions.
ASIC fee adjustments
Australian businesses should anticipate adjustments to company registration fees from the Australian Securities and Investments Commission (ASIC).
Typically linked to the Consumer Price Index (CPI), these changes will increase company costs associated with business name registration and renewals, company registration, and reviews, among other services.
If your business operates within this regulatory framework, it’s advised to consult the ASIC website for the updated fee schedule and adjust budgets accordingly.
Changes to casual employment
Business changes in July 2024 extend beyond wages and fees. The Fair Work Act’s casual employee definition is changing, taking effect on 26 August 2024. This impacts businesses relying on casual staff. The process for transitioning from casual to permanent employment (casual conversion) will also be modified.
These changes necessitate a thorough review of employment contracts and HR policies. Businesses should familiarise themselves with the updated definition and its implications for their operations.
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Key casual employment changes from 26 August 2024:
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A redefined ‘casual employee’ definition in the Fair Work Act. |
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A new pathway for casual employees seeking permanent employment conversion. |
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Employers must now provide all new casual employees with the Casual Employment Information Statement (CEIS). |
Businesses need to remain informed and updated on these specific alterations to casual employment laws to guarantee they meet their legal obligations and foster a transparent and fair work environment.
Changes impacting independent contractors
Business changes in July 2024 include revisions to the definitions and protections offered to independent contractors. Although effective from 26 August 2024, staying ahead and comprehending these modifications is advisable. Businesses need to know how these changes might affect their engagement with contractors.
These changes are designed to provide greater clarity and protection for both businesses and contractors operating within various industries, particularly those engaged through digital labour platforms. Consulting with legal and industry experts is recommended to navigate these changes effectively.
- Introducing a new definition in the Fair Work Act aims to clarify the terms ’employee’ and ’employer.’ This clarification will impact businesses that engage contractors and may lead to a reassessment of existing contracts.
- Empowering contractors to approach the Fair Work Commission to challenge contract terms they deem unfair. This provision seeks to ensure fair treatment for independent contractors, and businesses should review their contracts to ensure compliance.
- Establishing new frameworks to protect the rights of independent contractors engaged in digital labour platforms or the road transport industry. This move reflects the evolving nature of work and aims to provide greater security and protection for contractors in these sectors.
By understanding and preparing for these modifications well in advance, businesses can ensure a smooth transition while protecting their interests and fostering healthy working relationships.
Adapting to the right to disconnect
July’s changes see the introduction of an employee’s ‘right to disconnect’. Taking effect on 26 August 2024, eligible employees of non-small businesses can refuse communication from their employer, or a third party, outside of work hours unless unreasonable to do so. This will then apply to employees of small businesses 12 months later, from 26 August 2025.
This change aims to promote a healthier work-life balance and protect employees from being expected to be ‘always on’. Businesses need to establish clear guidelines around work-related communication outside of work hours and respect their employees’ right to disconnect.
The Australian business landscape is no stranger to change. This new wave of adjustments, while prompting careful navigation and adaptation, presents an opportunity. Business changes in July underscore the importance of staying informed, remaining agile, and seeking professional guidance to navigate complex legislation confidently.
By understanding and embracing these changes, businesses can not only achieve compliance but also foster a progressive and prosperous working environment. Succession planning and risk management are crucial aspects of adapting to these changes, ensuring businesses remain resilient and prepared for future challenges.
Commitments from the Federal Budget
With the unveiling of the 2024-25 Federal Budget, the Australian Government has introduced several key initiatives set to commence on 1 July 2024.
Support for small business energy costs
In a move to alleviate electricity expenses, eligible small businesses will benefit from a subsidy provided by the Federal Government. This is on top of the $400 energy credit previously declared by the Western Australian Government as a component of its State Budget on 9 May 2024.
Extension of the instant asset write-off
The popular instant asset write-off initiative has been prolonged through the next fiscal year. Small business owners who qualify can now claim a deduction of up to $20,000 per asset acquired for business use. To be eligible, these assets must be operational within the timeframe from 1 July 2024 to 30 June 2025.
How Sleek can help with the business changes post July 2024
We understand the challenges businesses face with regulatory changes. Our all-in-one digital platform simplifies payroll, superannuation, tax, and company registration, making it easier for you to adapt to changes. We also offer expert guidance to help you navigate the complexities of the new regulations.
With Sleek, you can stay compliant and focus on what matters most – growing your business. It’s why we’re here, to make things simpler, easier, and give you time to focus on the things that matter most.
Conclusion
Preparing for the business changes in July 2024 might seem daunting, but staying ahead of the curve is key to thriving in a dynamic market. This period underscores the critical need for businesses of all sizes to prioritise adaptability. Being aware of and implementing these legislative updates is crucial. Understanding their potential impact on your operations is just as important.
Successfully navigating these changes requires staying well-informed. Leveraging available resources and consulting with relevant authorities will prove invaluable. Businesses should actively engage with industry bodies, government websites like the ATO website, and seek professional advice to ensure they are well-prepared.
This proactive approach not only helps mitigate risk and avoid potential penalties, but also positions you to capitalise on new opportunities. Embrace change and leverage it to strengthen your business and solidify your position within the evolving Australian market.
FAQs about business changes July 2024 in Australia
What is the new minimum wage in Australia from July 2024?
The national minimum wage is increasing to $915.90 per week or $24.10 per hour. The state minimum wage in Western Australia (WA) is slightly higher at $917.80 per week or $24.15 per hour.
How will the super guarantee rate change affect my business?
The super guarantee rate will rise from 11% to 11.5% on July 1, 2024. You’ll need to apply this rate to all salary and wages paid on or after this date.
What do I need to know about the changes to casual employment and independent contractor definitions?
New definitions for casual employment and independent contractors take effect on August 24, 2024. Review your existing agreements to ensure compliance.
Is engineered stone completely banned from July 2024?
Yes, the use, supply, and manufacture of engineered stone are banned, but a transition period until December 31, 2024, allows for pre-existing contracts.
What energy bill relief can my small business expect?
Eligible small businesses will receive credits towards their electricity costs from both the Federal and Western Australian Governments.
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