Important changes to workplace laws commencing on 1 July 2023

Minimum wage increase – The Fair Work Commission will raise the National Minimum Wage to $882.80 per week or $23.23 per hour, along with a 5.75% increase to minimum award wages. The new rates will apply to affected workers starting from the first full pay period on or after 1 July 2023.

Superannuation changes – The superannuation guarantee rate will rise from 10.5% to 11%.

International student and working holiday visas – Student visa holders will see their allowable work hours increase from 40 to 48 hours per fortnight. Working Holiday Maker visa holders can now work for any employer for an additional 6-months, even if they previously worked for that employer before 1 July 2023. From 1 January 2024, visa holders will again be restricted to working for one employer.

New shutdown rules for Awards – Employers will no longer be able to require employees, under 78 select awards, to take unpaid leave during a shutdown period if they do not have sufficient accrued annual leave to cover the entire period. If a workplace still shuts down (i.e. for refurbishments or holidays) and permanent employees do not have sufficient leave, this may result in the employer being liable to pay the employees for their ordinary hours during this period.

Paid parental leave – From 1 July 2023, a number of changes to the paid parental leave scheme will take effect. This includes that the current entitlement of 18 weeks’ paid parental leave pay will be combined with the current Dad and Partner Pay entitlements of 2 weeks’ pay. Partnered couples and single parents will be able to claim up to 20 weeks’ pay.

Payroll tax (Victoria) – The Victorian Government plans to increase the legislated Victorian Payroll Tax Rate for large employers from 4.85% to 5.85%. When combined with the Mental Health Levy, the effective Payroll Tax Rate will be 6.85%. This change affects temporary workers in Victoria, including Limited Company and PAYG workers not covered by a payroll tax exemption. Payments made from 1 July 2023, regardless of when the work was carried out, will be subject to the new tax rate.

Child employment (Victoria) – The Child Employment (Amendment) Act 2022 (Vic) (Child Employment Act) regulating the employment of children under 15 years has been updated. Employers who were once required to apply for individual permits each time they engaged an employee under the age of 15 are able to access a new licencing system, reducing the administrative burden on businesses. For clarity, businesses with existing child permits will remain valid until the date of expiry.

Additionally, the Child Employment Act has made changes to the supervision requirements including the requirement for employers to keep supervisor records for a period of 5 years and for children working in a family business to be directly supervised by parent/s or an adult (a person who is 18 years of age or older) who is in the family business. Finally, not-for-profit organisations are now required to comply with the Child Employment Act and door-to-door fundraising will no longer be exempt from the meaning of employment.

If you require assistance or have any questions regarding these changes, please contact NRA Legal on 1800 572 679.