As 1 July 2024 rolls around, the first day of the new financial year brings a number of changes for organisations to ensure they have implemented or keep in mind for the year.

This year, there are some additional workplace changes which commence on 1 July 2024 including a further increase to government paid parental leave and a new workplace delegates’ rights term for modern awards and enterprise agreements.

National minimum wage and modern award wages

The National Minimum Wage will increase from $23.23 to $24.10 per hour and from $882.80 to $915.90 per week from the first full period on or after 1 July 2024.

Minimum rates in modern awards will increase by 3.75% from the first full pay period starting on or after 1 July 2024.

Superannuation

The superannuation guarantee rate will increase from 11% to 11.5% from 1 July 2024.

The maximum super contributions base will increase from $62,270 to $65,070 per quarter for the income year 1 July 2024 to 30 June 2025.

High Income Threshold

The high income threshold will increase from $167,500 to $175,000 per annum.

As a result, the compensation cap in an unfair dismissal claim will increase from $83,750 to $87,500.

Redundancy tax-free amounts

The tax-free amounts for redundancy payments will increase:

• From $11,985 plus $5,994 per year of service;
• To $12,524 plus $6,264 per year of service.

Workplace Delegates Rights

Workplace delegates rights terms for employees in modern awards will commence on 1 July 2024 (and will be published by the Fair Work Commission) and workplace determinations and enterprise agreement will be taken to include the modern award delegates’ rights term if they do not contain a more favourable delegates’ rights term.

Government Paid Parental Leave

The number of government paid parental leave days a family will have access to will increase from 100 days (20 weeks) to 110 days (22 weeks). The number of partner reserved days will remain unchanged at 10 days (2 weeks).

Action items

• Ensure your payroll systems are up to date
• Consider risk of any underpayments from earlier changes
• Identify any back-pay considerations and consider best strategy
• Identify any changes to parental leave policies, such as for GPPL top-up pay
• Consider if any upcoming termination calculations need to be updated
• Use the latest figures for any better-off-overall analysis (for employers with Enterprise Agreements in play)

Further action items following increase in High Income Threshold

• Consider whether you have (or should have) different approaches to performance management based on income level
• Identify which employees in your organisation now have access to unfair dismissal claims
• Check the components of remuneration for employees so you are clear on where they sit as against the threshold

Please get in contact with PCS if you have any queries about the above.