With the start of the new financial year, there are some important updates relating to payroll for businesses to be aware of, and to action.
Business Payroll Updates as of July 1, 2024
-
Minimum wage increase
A 3.75 per cent minimum wage increase has now come into effect and is to be applied to eligible employees’ pay from the first full pay period starting on or after 1st July 2024.
This now takes the new National Minimum Wage to $915.90 per week (based on a 38-hour week for a full-time employee), equivalent to $24.10 per hour. This has seen an increase from $882.80 per week or $23.23 per hour – an increase of 0.87c per hour or $33.10 per week for full-time employees.
Casual employees entitled to the National Minimum Wage must receive a minimum $30.13 per hour, which includes 25 per cent casual loading.
-
Superannuation
Superannuation Contribution Guarantee (SCG) will rise from 11% to 11.5%. It’s important to note this increase is calculated on the date wages are paid, irrespective of when the pay was earned.
SCG annual limit will see an increase from $27,500 to $30,000 for the 2024-25 year. Employees who wish to claim the upper limit via salary sacrificing are able to request an increase to their salary sacrifice amounts.
A word of warning regarding late superannuation payments. The ATO is now matching superannuation payments with payroll notifications and will contact employers who are paying their employee’s super late (ie if the super is received in the employees super fund later than the 28th after the end of the quarter).
Quarterly payment deadlines start from October 28, 2024 for employee superannuation.
-
Payroll tax
Some changes in relation to payroll tax now come into effect concerning the annual tax-free threshold. The annual tax-free threshold determines when businesses need to pay payroll tax.
Your business must pay payroll tax in New South Wales (NSW) if it pays wages in NSW, and your total Australian wages in a financial year are more than the tax-free annual threshold.
The payroll tax rate is applied to the wages amount above the threshold – this will be your payroll tax liability.
The payroll limits for NSW is $1.2m at a rate of 5.45% and QLD is $1.3m at a rate of 4.75%. For QLD, the payroll tax rate is 4.75% for employers or groups of employers who pay $6.5 million or less in Australian taxable wages and 4.95% for employers or groups of employers who pay more than $6.5 million in Australian taxable wages.
Regional employers may be entitled to a 1% discount on the rate until 30 June 2030.
If you need assistance with the payroll changes in your business, contact the team to make an appointment.
