Tag: childcare

working from home

New Right to Disconnect for Employees: What you need to know

Posted on | by Allan Hall

Starting on 26 August 2024 for non-small business employers and 26 August 2025 for small business employers, a significant change is coming to workplace relations in Australia.

Eligible employees will now have a new right to disconnect outside of work hours. This change is a result of a push to promote work-life balance and protect employees’ personal time.

Key Points:

  1. Right to Refuse Contact: Employees can refuse to monitor, read, or respond to contact from their employer or a third party outside of their working hours, unless such refusal is deemed unreasonable
  2. Coverage: The right to disconnect includes attempted contact outside an employee’s working hours
  3. Factors for Reasonableness: Several factors determine whether an employee’s refusal is unreasonable, including: 
    • The reason for contact
    • Whether the employee is compensated or paid extra for:
      • Being available to be contacted within a specific period
      • Working additional hours outside their ordinary work hours
    • The nature of the employee’s role and level of responsibility
    • The employee’s personal circumstances, including family or caring responsibilities
  4. Dispute Resolution: Disputes regarding the right to disconnect should be initially discussed and resolved at the workplace level. If unresolved, employees or employers can approach the Fair Work Commission for resolution
  5. Workplace Right: The right to disconnect will be a workplace right under general protection laws, safeguarding employees’ rights under the Fair Work Act
  6. Award Inclusion: By 26 August 2024, all awards will be required to include a ‘right to disconnect term,’ specifying how this new right applies across various industries and occupations.

Note: this change will come into effect for small business employers from 26 August 2025. 

What Should Employers Do?

  1. Review Contracts: Check employment contracts and position descriptions to see if employees are paid with the expectation of being contactable outside normal working hours
  2. Assess Policies: Evaluate and develop current policies and procedures regarding contacting employees after hours
  3. Train Managers: Ensure managers understand the new rules and do not penalise employees for reasonably refusing after hours contact
  4. Inform Employees: Consider providing training and information to employees about their new right to disconnect.

Need assistance?

At Allan Hall HR, we have a team of experienced HR consultants. Please call us on 1300 916 764 or contact us here to discuss any questions you may have in regard to the right to disconnect, how this might impact your business and implementing related policies and procedures. To learn more about our services, please click here.

CONTACT ALLAN HALL HUMAN RESOURCES

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July

1 July Changes

Posted on | by Allan Hall

What you need to know

There are legal, financial, and other changes your business will have to be across very soon. Not sure what they are or what to do? Don’t worry, we have you covered.

It’s been a big year for changes in areas like people management, pay and tax. Here’s a rundown of some key changes that will come into effect 1 July and what they mean for your business and your employees.

1. SUPER GUARANTEE INCREASES

If you haven’t already, then it’s time to get your payroll systems sorted as the superannuation guarantee increases to 11% from 1 July.

Also, make sure you’re across the gradual increases, which will see the super guarantee reach 12% by July 2025.

To work out how this will impact employees’ pay, have a look at whether their contract states their salary is inclusive of superannuation or not.

2. WAGES GO UP

Employees should also be aware that from 1 July, wage increases will come into effect following a ruling from the Fair Work Commission.

For employees who aren’t covered by an award, the minimum wage will go up from 1 July to $882.80 per week, or $23.23 per hour, and will apply from the first full pay period starting on or after 1 July 2023.

For employees covered by an award, minimum award wages will increase by 5.75%, also applying to the first full pay period starting on or after 1 July 2023.

3. FAIR WORK COMMISSION CHANGES

From 1 July 2023, the application fee will increase to $83.30. The fee applies to dismissal, general protections, bullying, and sexual harassment at work applications made under sections 365, 372, 394, 773, and 789FC of the Fair Work Act 2009.

There is no fee to make an application to deal with a sexual harassment dispute under section 527F of the Fair Work Act.

Also effective from 1 July, the high-income threshold in unfair dismissal cases will increase to $167,500 and the compensation limit will be $83,750 for dismissals occurring on or after 1 July 2023.

4. PAID PARENTAL LEAVE CHANGES

From 1 July, amendments to the Paid Parental Leave Scheme will come into effect.

Notably, the Dad and Partner Pay (DAPP) scheme, which currently provides up to two weeks of paid leave, will now be combined with the 18-week paid parental leave scheme. This means eligible parent couples or single parents can share their 20 weeks of leave – aimed at greater gender equity in parental caring responsibilities.

There are other changes, too, such as the whole 20 weeks of leave of instalments can be received flexibly in multiple blocks within 24 months of the child’s birth or adoption date, removing the previous requirement of 12 weeks in one continuous period.

Also, note that employees now have greater rights to request an additional 12 months of leave (24 in total) – and employers need to show reasonable business grounds on which to refuse.

5. CHILDCARE SUBSIDIES

For those who employ parents with young children, it’s worth noting that childcare rebates will change from 1 July. They should result in any employees with a family income of less than $530,000 getting a higher level of subsidy for the cost of childcare.

For example, families earning up to $80,000 will get an increased maximum Child Care Subsidy (CCS) amount, from 85% to 90%. If they earn over $80,000, they may get a subsidy starting from 90%, but it will go down by 1% for each $5,000 of income the family earns.

While these changes are applied automatically, it is worth being aware that they are coming.

6. DOMESTIC VIOLENCE LEAVE INTRODUCED

From 1 February, employers with 15 or more employees were required to provide their employees with 10 days of paid family and domestic violence leave (FDVL) per year. 

For smaller employers who employ less than 15 employees, this entitlement will operate from 1 August 2023.

Paid family and domestic violence leave is quite a sensitive topic, and there need to be procedures in place – on everything from how the HR or manager handles requests to the privacy issues around how it gets recorded on a pay slip.

7. PENSION AGE AND ELIGIBILITY INCREASES

For those businesses employing older Australians, it’s worth noting that from 1 July, the pension age will be raised to 67 for those born on or after 1 January 1957.

Not only that but asset and income eligibility tests will also be revamped, which means singles can earn $204 a fortnight and couples $360 a fortnight, before losing their full pension.

8. ENERGY BILL RELIEF ON ITS WAY

With soaring power bills contributing significantly to business operating costs, $650 in bill relief is on its way from July.

The total amount of bill relief will vary by state. To be eligible, your business must be on a separately metered business tariff with your electricity retailer – so if you run a business from home, you probably won’t qualify.

CONTACT ALLAN HALL BUSINESS ADVISORS

family paper chain

Claiming Family Tax Benefit and Child Care Subsidy

Posted on | by Allan Hall

REMINDER: Claim Family Tax Benefit and Child Care Subsidy by 30 June

Confirm your income now for the 2020/21 year to receive the Family Tax Benefit (FBT) or Child Care Subsidy (CCS).

You need to confirm your income by lodging your tax return for the 2020/21 year, or advising that you do not need to lodge a tax return, no later than 30 June 2022, if you wish to:

If you DON’T do this:

  • You will not receive your FTB supplements and top ups for the 2020/21 year
  • Your CCS will reduce to zero – Services Australia will balance CCS once they receive:
    • all attendance information from your child care service
    • confirmation of your family’s income
  • You may also be required to repay all the FTB and CCS you got for the 2020/21 financial year.

If you are eligible the Child Care Subsidy (CCS) is paid directly to your child care provider to reduce the fees you pay. CCS claims can only be backdated by 28 days. CCS replaced Child Care Benefit and Child Care Rebate when they stopped on 1 July 2018.

Act now!

To ensure both you and your partner’s Tax Returns are lodged on time, please contact your Allan Hall Business Advisor or simply click below.

We are anticipating a high demand off the back of this article. To enable us to lodge your returns by the 30 June deadline, we would encourage you to send in your information as soon as possible and no later than 31 May 2022.

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Parliament House

2021-2022 Federal Budget

Posted on | by Allan Hall

Taxation and Accounting Overview

The Budget lists increased support for unemployed Australians as the single largest item of new spending, with $697.4 million in new spending in 2020-1 and $9.46 billion over five years, including the four years of the Forward Estimates.

However the Budget splits Aged Care spending into two separate items – residential care and home care. Together these account for $18.25 billion in new spending over five years. The Budget also includes $13.2 billion over four years for the NDIS.

The Budget deficit will reach $161 billion in 2020-21, before falling to $57 billion in 2024-25. Net debt will increase to $617.5 billion or 30.0 per cent of GDP this year and peak at $980.6 billion or 40.9 per cent of GDP in June 2025.

The Budget includes a further $1.9 billion for the roll out of vaccines. It provides another $1.5 billion for COVID-related health services, including for testing and tracing, respiratory clinics and telehealth.

To read our comprehensive Budget report outlining the changes to taxation and accounting, please click here. For all other Budget documents, including an overview from the Australian Government, please visit the Budget website: https://budget.gov.au/.

We have provided an overview for tax, superannuation and other key areas as follows.

Personal tax

The Budget provides $7.8 billion in tax cuts by retaining the low and middle income tax offset (LMITO) in 2021-22. LMITO, which was introduced as a coronavirus measure was due to expire in June 2021.

An additional $25.1 billion in tax cuts announced in previous Budgets are expected to flow to households in 2021-22.

Around 10.2 million individuals will benefit from retaining the offset in 2021-22, which is worth up to $1,080 for individuals or $2,160 for dual income couples.

Business tax concessions

The Budget extends by one year two business tax concessions announced in the 2020-21 Budget — temporary full expensing and temporary loss carry-back. Together, temporary full expensing and temporary loss carry-back provide an incentive for businesses to bring forward investment to access the tax benefits before they expire.

Combined, the extension of the temporary full expensing and temporary loss carry-back measures is estimated to deliver a further $20.7 billion in tax relief to businesses over the forward estimates.

Small business tax disputes

The Budget confirmed a pre-Budget announcement allowing small businesses to litigate tax disputes with the Australian Tax Office before Administrative Appeals Tribunal, rather than the slower and more expensive litigation before the Federal Court, as at present.

Skills and training

The Budget provides $2.7 billion for more than 170,000 new apprenticeships and traineeships including 2,700 places in Indigenous girls academies to help them finish school and enter the workforce, and more STEM scholarships for women, in partnership with industry.

Manufacturing innovation

The Government has established a new “patent box” starting on 1 July 2022. Under the patent box, income earned from new patents that have been developed in Australia will be taxed at a concessional 17 per cent rate. The patent box will apply to the medical and biotech sectors and the Government said will consult on expanding it to the clean energy sector.

Superannuation

  • The Budget Increases the amount that can be released under the First Home Super Saver Scheme from $30,000 to $50,000.
  • It also removes the $450 per month minimum income threshold for the superannuation guarantee. The Treasurer said, “This will improve economic security in retirement for around 200,000 women.”
  • The Government has removed the work test on voluntary superannuation contributions to superannuation by people aged 67 to 74.
  • It will also allow those aged over 60 to contribute up to $300,000 into their superannuation if they downsize their home, freeing up more housing stock for younger families.
  • The Pension Loan Scheme has been expanded, providing immediate access to lump sums of around $12,000 for singles, and $18,000 for couples.

Higher education

The Budget provides an extra 5,000 places in higher education short courses.

Childcare

The Budget confirms the pre-Budget announcement of $1.7 billion investment in childcare.

Digital infrastructure

The Budget contains $1.2 billion for a Digital Economy Strategy. It will

  • Establish a new national network of Artificial Intelligence Centres to drive business adoption of these new technologies.
  • Expand the Cyber Security Innovation Fund to train the next generation of cybersecurity experts.
  • A digital skills cadetship trial which combines workplace and vocational training.

Need help?

If you would like assistance to interpret these changes and how they may affect your individual circumstances or your business, please contact your Allan Hall Advisor on 02 9981 2300.

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