Discover the latest updates in the financial realm as we unveil the five crucial changes taking effect from 1 July 2023.
1. The Superannuation Guarantee Rate increases from 1 July from 10.5% to 11%. This means that as an employer you are required to put a higher amount into your employee's Super Fund each quarter. It is important to ensure that your Payroll software is up to date with this increased amount. The government plans on increasing the Superannuation Guarantee Rate until it reaches 12% from 1 July 2025.
2. The Fair Work Commission announced the National Minimum Wage will be increased to $882.80 per week or $23.23 per hour and a 5.75% increase to minimum award wages. The increase applies from the first full pay period starting on or after 1 July 2023. For more information visit www.fairwork.gov.au
3. The eligibility for the government's First Home Guarantee Scheme (including the First Home Guarantee, Family Home Guarantee and the Regional First Home Guarantee) will be expanded from 1 July 2023. Siblings, friends, and other family members will be able to jointly apply for the home guarantee. Legal guardians of children will also be eligible for the family guarantee.
4. Starting July 1st, 2023, individuals without Private Health Insurance can expect an increase in the Medicare Levy—an initiative aimed at encouraging Australians to opt for private coverage and alleviate pressure on the public health system. Notably, the income threshold for singles will rise from $90,000 to $96,000 before tax, while families will see an increase from $180,000 to $186,000. As a result, the Medicare Levy surcharge will stand at 1%, reflecting these adjustments.
5. Parental Leave will increase from 1 July 2023 from 18 weeks to 20 weeks. The government plans on continuing this increase by 2 weeks each year, until 1 July 2026 when it reaches 26 weeks.