[adning id=”12070″]

[adning id=”12070″]

How 1 July 2022 changes may affect your business

The start of a new financial year is often that time when changes to national or state legislation is introduced.

Here is a run-down of the key changes taking effect from 1 July 2022 that are likely to have an impact on small business owners in Western Australia.

New minimum wages

The minimum wages for both the federal and state industrial relation systems will increase from the first pay on or after 1 July 2021.

National minimum wage increase

If your business operates under the federal industrial relations system (covering businesses such as ‘Pty Ltd’ companies), the new national minimum wage will be $812.60 per week or $20.33 per hour.

The national minimum wage increases from 1 July 2022 covers all modern awards, unless exceptional circumstances exist (for example in sectors such as aviation, tourism and hospitality). The minimum wage for workers in these industries who are covered by the following modern awards, will not increase until 1 October 2022:

  • Hospitality Industry (General) Award 2020
  • Registered and Licensed Clubs Award 2020
  • Restaurant Industry Award 2020

State minimum wage

SUV_Expo_2024_Meblbourne

If your business operates under the WA state industrial relations system (covering sole traders, micro businesses, unincorporated partnerships and unincorporated trust arrangements), the new minimum wage will be $819.90 per week.

Changes to super

Super guarantee rate increase

The super guarantee rate will increase from 10% to 10.5% on 1 July 2022. This change is part of incremental increases that will see the rate increase by 0.5 per cent annually until it reaches 12 per cent on 1 July 2025.

The rate of 10.5% will need to be applied to all salary and wages paid on and after 1 July 2022, even if some or all of the pay period it relates to is before 1 July 2022.

Removal of $450 per month threshold for super guarantee eligibility

Employees who earn less than $450 in a calendar month (before tax) will be eligible to receive the super guarantee, regardless of how much they are paid, from 1 July 2022. Employees who are under 18 will still need to work more than 30 hours in a week to be eligible for super guarantee, which has not changed.

Ban on single-use plastics

Enforcement of Stage 1 regulations for Western Australia’s ban on single-use plastics (except for single-use cups, which will start on 1 October 2022) will start on 1 July 2022. Business that use single-use plastics should ensure they are prepared for the change.

Find out more about WA’s ban on single-use plastics.

Motor vehicle information scheme

As part of the Competition and Consumer Amendment (Motor Vehicle Service and Repair Information Sharing Scheme) Act 2021, the motor vehicle information scheme will require motor vehicle service and repair information to be made available for Australian repairers to purchase at a fair market price. The scheme aims to increase competition and choice for consumers when it comes to getting their car serviced or repaired.

Visit the Australian Competition & Consumer website (ACCC) to find out more.

Location allowance for employees in regional areas

If you have employees in certain regional towns, you may be required to pay a location allowance. Visit the Wageline website for information on the new rates for each town and details of the wage awards this allowance applies to.

 

This article is republished from the Small Business Development Corporation (SBDC) website. The SBDC is a WA State Government agency that supports small business. Please read the disclaimer before relying on this information, which has been developed primarily with Western Australian businesses in mind.

Facebook
Twitter
LinkedIn
Email
Print

Leave a Reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE FREE
SME NEWS BRIEFS

Get breaking news delivered
This field is for validation purposes and should be left unchanged.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?