2023 Key Changes that may affect Australian Small Business

It's been a month since the start of the new financial year, and numerous significant changes have been introduced.

The Australian Small Business and Family Enterprise Ombudsman emphasises the importance for small business owners to be abreast of these changes, as they predominantly impact them.

Given the busy nature of small business owners and startups, it's easy to miss these updates. However, some changes, especially those that substantially affect business finances, are too crucial to ignore.

Here's a breakdown of what small businesses should be aware of:

National Minimum Wage Increase

Since 1 July 2023, the National Minimum Wage has increased by 5.75%. The revised National Minimum Wage now stands at $23.23 per hour or $882.80 per week.

Award Minimum Wage Increase

The minimum pay rates for adult full-time employees under modern awards also increased by 5.75%. Note: Awards are legal documents detailing the minimum employment conditions and pay rates for covered employees.

High-income Threshold and Compensation Limit Increase

The high-income threshold has been adjusted upwards from AU$162,000 to AU$167,500. This shift influences how modern awards relate to employees and their protection against unfair dismissals by the Fair Work Commission.

Additionally, the maximum compensation limit for unfair dismissal cases has been raised from AU$81,000 to AU$83,750. This figure represents the most substantial compensation an employee can obtain if they prevail in an unfair dismissal case.

Location Allowance for Employees in Regional Areas

Certain awards in Western Australia (WA) now mandate employers to grant a location allowance for employees based in specific regional towns. This allowance compensates employees for the higher living costs, climatic challenges, and isolation these towns present. A list of WA awards mandating this location allowance can be found here.

Increase in Business Name and Company Registration Fees

Following the surge in the Consumer Price Index (CPI) for the March quarter, the Australian Securities and Investment Commission updated the company and business name registration fees effective 1 July 2023. The revised fees are detailed here.

Super Guarantee Rate Increase

The superannuation guarantee (SG) rate has risen from 10.5% to 11% for all eligible employees with superannuation. When calculating superannuation for employee payments, businesses must utilise this new rate, even if some or all of the pay period occurs before July 1. As per current legislation, the SG rate is set to climb further to 12% by 2025.

Outsourcing as a Solution

In the midst of these significant changes that could increase costs for your business, consider an effective solution: outsourcing.

By partnering with a reputable outsourcing provider like hammerjack and entrusting certain functions to external experts, you can manage your business better and reduce your concerns about the extra costs.

When you have an outsourced team, you need not to worry about these costly changes.

Outsourced staff facilitates smoother operations, while potentially delivering savings and operational benefits.

Ready to explore the benefits of Outsourcing beyond cost-effectiveness? Delve into our ebook here .

About the contributor:?

Kathleen Vallido ?is a Marketing Expert at?hammerjack , one of the fastest-growing outsourcing providers in the Philippines. She has a Bachelor's Degree in Communication specialising in Advertising. Her experience working with tech startups combined with her comprehensive skills in content creation, graphic design, video editing, and a deep understanding of marketing and social media, Kathleen is poised to continue making waves in the ever-evolving landscape of digital marketing.?