Staying updated with payroll compliance is crucial for any business, ensuring that your operations run smoothly and lawfully. As the financial year nears its end, completing all EOFY activities is essential. To assist you, here is a comprehensive guide with important information and resources you need to know before 1 July 2024.
Minimum Wage Update
On 3 June 2024, the Fair Work Commission announced an increase in the minimum wage by 3.75%. Starting from the first full payroll after 1 July 2024, the new minimum wage rates will be as follows:
- Per Week – $915.90
- Per Hour – $24.10
This update is essential for all awards and directly impacts the payroll calculations for many businesses.
More details can be found on the ATO website.
ATO Cents Per KM Rate
The Australian Taxation Office (ATO) has proposed a draft ruling to increase the Cents Per KM Rate to 88 cents per kilometre. This change is currently in the proposal stage, so it’s vital to monitor the ATO’s website for the final ruling. Once confirmed, businesses should promptly update their allowances to reflect this new rate.
More details can be found on the ATO Website.
PAYG Rates
The Stage 3 Tax Cuts will take effect from the first payroll paid on or after 1 July 2024. The tax tables for the 2024–2025 income year have been updated and will automatically apply to any payrolls processed in the new financial year. These changes affect:
- Resident employees
- Employees with Student Loan debts (FeeHelp / STSL / HECS)
- Working Holiday Makers
Ensuring these rates are correctly implemented in your payroll system is critical for compliance.
Victorian Payroll Tax Changes
Victoria will see significant changes to payroll tax starting 1 July 2024:
- The payroll tax-free threshold will increase from $700,000 to $900,000, reducing the payroll tax burden for smaller employers.
- Employers with wages between $3 million and $5 million will experience a phased-out tax-free threshold, resulting in a higher payroll tax liability.
Understanding these changes is essential for accurate payroll tax calculations and financial planning for businesses operating in Victoria.
More info from Victoria State Revenue Office (VIC SRO).
Superannuation Changes
From 1 July 2024, the superannuation guarantee rate will rise from 11% to 11.5%. Employers should review any salary sacrifice arrangements to ensure they continue to meet employees’ original requests. This change highlights the importance of staying vigilant with superannuation compliance to avoid potential issues.
Adhering to these payroll compliance updates is vital for the smooth operation of your business and the well-being of your employees. By staying informed and making the necessary adjustments, you can ensure compliance and protect your organisation from potential penalties.
For more detailed information on these updates and how they impact your business, don’t hesitate to reach out to a payroll professional or seek further guidance. Remember, staying compliant isn’t just about avoiding penalties—it’s about creating a fair and supportive workplace for your employees.
Stay compliant and keep your payroll processes running smoothly!