Workplace Gender Equality Agency Reporting

Posted on 25 March 2024 | by Allan Hall

WGEA Reporting or Pay Secrecy

Workplace Gender Equality Agency (WGEA) has published the 2022-2023 median gender pay gaps for private sector businesses with 100 or more employees, encompassing both base salary and total remuneration.

Some notable findings include:

30% of employers have a median gender pay gap between the target range of -5% and +5%
62% of median employer gender pay gaps are over 5% and in favour of men
The remaining (8%) are less than -5% and in favour of women
Across all employers, 50% have a gender pay gap of over 9.1%.

The above findings suggest that there is still a large gap between gender pay equality with only 30% of businesses within the target range. This is largely demonstrated by the statistic that 62% of employers are currently paying men over 5% more than women across the business.

Who needs to complete an annual WGEA report?

All private sector businesses with 100 or more employees are required to complete their WGEA report between 1 April and 31 May of each year. The report must provide data from the previous year for the date ranges of 1 April through to 31 March.

For more information about who needs to report and how to complete the WGEA report, please click:

WGEA EMPLOYER PORTAL

Even if your company has fewer than 100 employees, it is important to be proactive in identifying potential inequalities within the workplace. Conducting a payroll audit and internal salary benchmarking are important steps to take.

How does pay secrecy impact gender pay inequality?

Pay secrecy can play a big part when it comes to gender inequality in the workplace. Pay secrecy, where employees are prohibited from discussing their pay, hampers transparency and can conceal gender-based pay disparities. For this reason, changes have been made from 7 December 2022 to remove the permittance of pay secrecy clauses within contractual agreements. This change aims to advocate for transparency in pay practices to ensure that all employees, regardless of gender, are fairly compensated for their work.

MORE INFORMATION ON PAY SECRECY

Need HR Assistance?

At Allan Hall HR, we have a team of experienced HR consultants. To learn more about our services, please click here. Alternatively, please feel free to call us on 1300 916 764 or contact us to discuss any questions you may have in regard to WGEA Reporting or Pay Secrecy.

audits, benchmarks, employees, employer, HR Services, human resources, payroll, remuneration, reporting

NSW and Victoria enforce GP Payroll Tax

Posted on 28 August 2023 | by Allan Hall

New rulings on state revenue clarify that medical centres will be held accountable for the tax under service fee arrangements.

Unlike Queensland and South Australia, which have introduced temporary amnesties, medical centres in Victoria and NSW are now subject to payroll tax obligations.

The NSW and Victorian state revenue authorities simultaneously issued almost identical rulings on Friday. These acknowledge a pivotal court decision that altered the landscape for GPs practising in medical centres.

While Western Australia pursues its own course, the remaining four mainland states are aligned on the matter, with one crucial exception.

Unlike Queensland and South Australia, which have declared amnesties for practices, there has been no such announcement from Victoria or NSW. It is unlikely to occur as both states have previously expressed their aversion to this approach.

The tax obligation was confirmed by the case of Thomas and Naaz Pty Ltd v Chief Commissioner of State Revenue [2021], focusing on the definitions of an employee and a “relevant contract.” The rulings in Victoria and NSW underscored the continuity of existing legislation and merely aim to provide clarity on their longstanding stance.

Historically, customary service fee arrangements, where medical centres collect patient fees and then deduct service fees for administrative purposes (billing, room usage, staffing costs, etc.) were generally considered outside the scope of payroll tax. However, after the outcomes of the Thomas & Naaz and Optical Superstores cases, both favouring state revenue bodies, these practices have been singled out for necessary adjustments.

Numerous practices have been anticipating this to institute alterations in their procedures and agreements.

CONTACT ALLAN HALL BUSINESS ADVISORS

Parental Leave Changes — Effective 1 July 2023

Posted on 25 July 2023 | by Allan Hall

Unpaid Parental Leave

From 1 July 2023, employees will have access to changed unpaid parental leave entitlements as part of the Federal government’s recent initiatives which aim to provide families with greater flexibility.

A summary of the recent changes can be found in the table below:

Parental Leave Changes — Effective 1 July 2023 1

Impact on Employers

It is important for you to be aware of these changes to be able to adjust your policies or employee handbook and to respond to new requests and extensions to unpaid parental leave accordingly.

Please note, that if an employee wishes to extend their original unpaid parental leave, they must give at least 4 weeks’ notice in writing, before the end date of their original leave period, and the request must include the new leave end date.

As an employer, you must respond within 21 days, either agreeing; agreeing to a variation after discussion with the employee; or refusing the request. Please be mindful however, that you can only refuse a request if you have discussed a variation to the extension period with the employee but haven’t been able to reach an agreement AND if your refusal is on reasonable business grounds.

As part of the new legislation, employees have the right to lodge a dispute regarding a request for extended leave with the Fair Work Commission if:

the employer refuses an employee’s request;
the employer doesn’t provide a written response to a request within 21 days; or
the employee and employer have been unsuccessful in trying to resolve the dispute at the workplace level.

We therefore highly recommend that you discuss the matter with one of our consultants at Allan Hall HR before refusing any request for an extension to unpaid parental leave.

Paid Parental Leave changes

Further changes have also been made from 1 July 2023 to the Government’s Paid Parental Leave (PPL) scheme, which provides eligible individuals with financial support for the birth or adoption of a child.

Under the previous PPL scheme, parents would need to apply separately (i.e. the primary caregiver could access up 18 weeks of financial support, and the partner or ‘secondary carer’ could access up to 2 weeks of support under what was referred to as ‘Dad and Partner Pay.’)

From 1 July, parents will be able to apply to this scheme together and may access up to 20 weeks of paid parental leave to use between them. The Government has indicated that the payment will continue to increase by 2 weeks each year until 1 July 2026 when it will reach 26 weeks.

Please note, it is up to the individual to apply for a PPL payment directly through Services Australia. You will not be able to apply for this benefit on the employee’s behalf. When an employee applies, their eligibility is determined by Services Australia. Eligibility is not determined by the employer.

Allan Hall HR has a team of experienced consultants to help answer any questions you may have regarding the Unpaid and Paid Parental Leave changes and how they should be applied to your unique business and employee circumstances.

We encourage you to reach out to us for further guidance by calling 1300 675 393 or emailing [email protected].

CONTACT ALLAN HALL HUMAN RESOURCES

1 July Changes

Posted on 10 July 2023 | 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

National Minimum Wage rise effective 1 July 2023

Posted on 5 June 2023 | by Allan Hall

The Fair Work Commission has announced this year’s Annual Wage Review Decision

National Minimum Wage Increase

Effective from 1 July 2023, the National Minimum Wage will increase by 5.75%.

In addition to the percentage increase, the Commission has also increased the wage level that the minimum wage had traditionally been based on under certain Modern Awards.

Together these two changes mean that those employees in receipt of the minimum wage will receive the following rates before tax:

$23.23 per hour, and
$882.80 per week (based on a 38-hour week for a full-time employee).

This increase will see an extra $70.20 ‘in the pocket’ each week.

Modern Award Rate Increase

Similar to the National Minimum Wage increase, all 121 Modern Awards will also increase by 5.75% on 1 July 2023.

The Fair Work Commission will release updated Pay Guides in line with the effective date.

Modern Awards can be complex. If you need help determining if a Modern Award applies to your employees or you understand what Awards apply but you need assistance understanding the specific Classification they fall under, contact the Allan Hall Human Resources Team on 1300 675 393.

Non-Award Employees

It is important to note that if you have non-award covered employees receiving payment which is above the national minimum wage, you are not obliged to increase their salary/wages. However, with the current Australian job market being so competitive and a shortage of potential employees available, it may be worth undertaking a salary benchmarking exercise and considering if an increase would be suitable during your next salary review.   

At Allan Hall HR we can provide you with Salary Benchmarking reports, based on data from a range of current and reputable reporting sources. If you want to know what the market is doing, contact us to gain access to salary insights based on a range of factors such as industry, turnover, headcount and location!

Changes to Superannuation from 1 July 2023

As a reminder, the Super Guarantee rate will rise from 1 July 2023. This will rise by another half per cent, taking the minimum super guarantee from 10.5% to 11%.

The Super Guarantee rate will continue to rise by an additional 0.5% at the start of each financial year until it reaches 12% in 2025.

Next Steps

Check if your employees are covered by the national minimum wage or a Modern Award.  
Should a Modern Award apply to your employees, ensure you have correctly classified your employees under the relevant award, and confirm the minimum rates of pay that will apply.   
Review the current rates of pay for your employees and, if required, adjust their pay rates from their first full pay period starting on or after 1 July 2023.
Ensure you start applying the new Superannuation Guarantee rate of 11% from 1 July 2023.

Our experienced HR Consultants at Allan Hall HR are available to answer your queries regarding the wage rise and assist you with clarification of awards, salary benchmarking or any other employee-related matters. Feel free to get in touch with us today on 1300 675 393.

CONTACT ALLAN HALL HUMAN RESOURCES

Annual Shutdown and Unpaid Leave changes

Posted on 31 May 2023 | by Allan Hall

Understanding the revised regulations for Annual Leave and Unpaid Leave during temporary business shutdowns

Impact on employers and employees

Generally, when businesses temporarily shut down over Christmas/New Year, employers have been able to direct their employees to take annual leave or, where they have no annual leave entitlements available, employers have been able to direct their employees to take unpaid leave.

As a result of changes to 78 Awards, from 1 May 2023, employers will no longer be permitted to direct their employees to take unpaid leave where they do not have a sufficient accrual of annual leave to cover the shutdown.

The recent findings of the Fair Work Commission were, that making a direction to an employee to take unpaid leave was effectively a stand down, and the Fair Work Act 2009 only permitted employees to be stood down in limited circumstances, which did not include a temporary stoppage of operations such as an annual shutdown.

Award Covered Employees

Under the changes to the Awards listed in the Commission’s decision here, employers can still issue a direction to employees to take annual leave during a temporary shutdown if the direction is in writing, is reasonable and their employees have accrued sufficient annual leave entitlement.

In assessing reasonableness, the following factors are relevant:

the needs of the employee and the business
any agreed arrangement with the employee
custom and practice of the business
timing of the direction or requirement to take leave
whether the length of the period of notice given is reasonable.

Each Award stipulates the period of notice which must be given to all employees of the shutdown (generally between 28 days and two months) unless a shorter period is agreed with the majority of employees, or for employees who are engaged after notice is given, as soon as reasonably practicable after they have been engaged.

Employers are no longer permitted to direct employees to take unpaid leave where their annual leave entitlements have been exhausted.

However, under the changes, employers can still:

agree with an employee in writing that they take a period of unpaid leave; or
come to an arrangement with the employee to take annual leave in advance resulting in a negative annual leave balance.

But, if employees do not agree to the above, then they will be entitled to be paid wages during the shutdown period.

Award and Agreement Free Employees

For award and agreement-free employees, employers can still require them to take a period of annual leave if the requirement is reasonable.

A requirement to take annual leave may be reasonable if, for example:

the employee has an excessive annual leave balance
the business is being temporarily shut down for a period (such as between Christmas and New Year).

Just like Award Covered Employees, Award/Agreement Free employees cannot be directed to take unpaid leave if they do not have sufficient accrued annual leave.

Need Assistance?

If your business is planning a temporary shutdown of its operations, it is important that you are aware of your obligations under each applicable award for your employees and manage employee leave accordingly. Should you require assistance with notification requirements or reaching agreement with your employees regarding shutdown arrangements, please feel free to call us on 1300 675 393 or contact Alan Hall Human Resources here »

2023-24 Federal Budget

Posted on 10 May 2023 | by Allan Hall

Tax and Superannuation Overview

2023-24 Federal Budget Highlights

The Federal Treasurer, Dr Jim Chalmers, handed down the 2023–24 Federal Budget at 7:30 pm (AEST) on 9 May 2023.

The Budget forecasts the underlying cash balance to be in surplus by $4.2 billion in 2022–23, the first surplus since 2007–08, followed by a forecast deficit of $13.9 billion in 2023–24.

The Treasurer has described the tax measures as “modest but meaningful” including changes to the Petroleum Resources Rent Tax and confirmation of a 1 January 2024 implementation of the BEPS Pillar Two global minimum tax rules.

A range of measures provide cost-of-living relief to individuals such as increased and expanded JobSeeker payments and better access to affordable housing. No changes were announced to the Stage 3 personal income tax cuts legislated to commence in 2023–24.

As part of the measures introduced for small business, a temporary $20,000 threshold for the small business instant asset write-off will apply for one year, following the end of the temporary full expensing rules.

The full Budget papers are available at www.budget.gov.au and the Treasury ministers’ media releases are available at ministers.treasury.gov.au. The business tax and superannuation highlights are set out below.

READ FULL BUDGET REPORT

Business highlights

The instant asset write-off threshold for small businesses applying the simplified depreciation rules will be $20,000 for the 2023–24 income year.
An additional 20% deduction will be available for small and medium business expenditure supporting electrification and energy efficiency.
FBT exemption for eligible plug-in hybrid electric cars will end from 1 April 2025.
Employers will be required to pay their employees’ superannuation guarantee (SG) entitlements at the same time as they pay their salary and wages from 1 July 2026.

Small business depreciation — instant asset write-off threshold of $20,000 for 2023–24

The instant asset write-off threshold for small businesses applying the simplified depreciation rules will be $20,000 for the 2023–24 income year.

Small businesses (aggregated annual turnover less than $10 million) may choose to calculate capital allowances on depreciating assets under a simplified regime. Under these simplified depreciation rules, an immediate write-off applies for low cost depreciating assets. The measure will apply a $20,000 threshold for the immediate write-off, applicable to eligible assets costing less than $20,000 first used or installed between 1 July 2023 and 30 June 2024. The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write-off multiple low-cost assets. The threshold had been suspended during the operation of temporary full expensing from 6 October 2020 to 30 June 2023.

Assets costing $20,000 or more will continue to be placed into a small business depreciation pool under the existing rules.

The provisions that prevent a small business entity from choosing to apply the simplified depreciation rules for 5 years after opting out will continue to be suspended until 30 June 2024.

Increased deductions for small and medium business expenditure on electrification and energy efficiency

An additional 20% deduction will be available for small and medium business expenditure supporting electrification and energy efficiency.

The additional deduction will be available to businesses with aggregated annual turnover of less than $50 million. Eligible expenditure may include the cost of eligible depreciating assets, as well as upgrades to existing assets, that support electrification and more efficient use of energy. Certain exclusions will apply, including for electric vehicles, renewable electricity generation assets, capital works, and assets not connected to the electricity grid that use fossil fuels.

Examples of expenditure the measure will apply to include:

assets that upgrade to more efficient electrical goods (eg energy-efficient fridges)
assets that support electrification (eg heat pumps and electric heating or cooling systems), and
demand management assets (eg batteries or thermal energy storage).

Total eligible expenditure for the measure will be capped at $100,000, with a maximum additional deduction available of $20,000 per business.

When enacted, the measure will apply to eligible assets or upgrades first used or installed ready for use between 1 July 2023 and 30 June 2024. Full details of eligibility criteria will be finalised in consultation with stakeholders.

FBT exemption for eligible plug-in hybrid electric cars to end

The FBT exemption for eligible plug-in hybrid electric cars will end from 1 April 2025.

Arrangements involving plug-in hybrid electric cars entered into between 1 July 2022 and 31 March 2025 remain eligible for the exemption.

Employers to be required to pay SG on payday

Employers will be required to pay their employees’ superannuation guarantee (SG) entitlements at the same time as they pay their salary and wages from 1 July 2026.

Employers are currently required to make SG contributions for an employee on a quarterly basis to avoid incurring a superannuation guarantee charge.

The proposed commencement date of 1 July 2026 is intended to provide employers, superannuation funds, payroll providers and other stakeholders sufficient time to prepare for the change.

Changes to the design of the superannuation guarantee charge will also be required to align with the increased payment frequency. The government will consult with relevant stakeholders on the design of these changes, with the final framework to be considered as part of the 2024–25 Budget.

In addition, funding will be provided to the ATO to, among other things, improve data matching capabilities to identify and act on cases of SG underpayment.

Superannuation measures

Superannuation earnings tax concessions will be reduced for individuals with total superannuation balances in excess of $3 million from 1 July 2025.
The non-arm’s length income (NALI) provisions will be amended to provide greater certainty to taxpayers.

Reducing tax concessions for super balances exceeding $3M

Superannuation earnings tax concessions will be reduced for individuals with total superannuation balances in excess of $3 million.

From 1 July 2025, earnings on balances exceeding $3 million will incur a higher concessional tax rate of 30% (up from 15%) for earnings corresponding to the proportion of an individual’s total superannuation balance that is greater than $3 million. The change does not impose a limit on the size of superannuation account balances in the accumulation phase and it applies to future earnings, ie it is not retrospective.

Earnings relating to assets below the $3 million threshold will continue to be taxed at 15%, or zero if held in a retirement pension account.

Interests in defined benefit schemes will be appropriately valued and will have earnings taxed under this measure in a similar way to other interests.

Need help?

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

CONTACT ALLAN HALL BUSINESS ADVISORS

Payday super proposed

Posted on 8 May 2023 | by Allan Hall

Superannuation system update in consultation

Following a media release last week, the Government announced that from 1 July 2026, employers will be required to pay super for their employees at the same time as their salary and wages.

The start date will provide employers, super funds, payroll providers and other parts of the superannuation system with sufficient time to prepare for the change.

This is not yet law.

Treasury and the ATO will consult closely with industry and stakeholders on these changes in the second half of 2023. This measure is aimed at closing the gap on billions of dollars in unpaid super.

The upside for small business is the bank account better reflecting actual cash flow position. With most accounting software packages heavy lifting the additional administration required, employers who outsource their payroll will face additional compliance costs.

For more information, see the Hon Stephen Jones MP joint media release here or contact the team at Allan Hall.

CONTACT ALLAN HALL BUSINESS ADVISORS

Super guarantee rate change scheduled

Posted on 24 April 2023 | by Allan Hall

Get ready for a change in the super guarantee rate

The superannuation guarantee (SG) rate will increase from 10.5% to 11% on 1 July 2023.

Employers, remember to update your payroll system to align with these changes.

The new SG rate applies to payments made to workers on or after 1 July 2023.

The Superannuation Guarantee is a compulsory scheme that requires employers to provide a minimum level of superannuation support to their eligible employees.

Under this scheme, employers are required to make regular contributions to a complying superannuation fund or retirement savings account (RSA) on behalf of their employees. The current rate of SG contribution is set at 10.5% of an employee’s ordinary time earnings, with some exceptions for certain employees.

The aim of the SG scheme is to help save for retirement and reduce reliance on the age pension. It also helps to ensure that employees are provided with a level of superannuation support throughout their working life, regardless of their employer or industry.

It is important to note that the SG scheme is separate from any additional voluntary contributions that an employee may choose to make to their superannuation account.

Refer to the ATO’s Super Guarantee Percentage table here »

To discuss tax planning, payroll updates or to clarify the requirements around this topic please contact our team.

CONTACT ALLAN HALL BUSINESS ADVISORS