Increase to Minimum Wages – a Staggered Approach
The Fair Work Commission has announced a 1.75% increase to minimum wages. This will apply to all award wages with increases starting on different dates depending on the award.
For more information about the start dates: Fair Work link
Change to Cents per kilometre method rate – effective 1 July 2020
For employers who pay their employees motor vehicles allowances based on the ATO cents per kilometre rate, this rate will increase to 72cents for the 2021 year (previously 68 cents). Please update your payroll software accordingly from 1 July 2020.
Super guarantee loophole closed – effective 1 July 2020
The Government previously passed legislation that will close a Superannuation Guarantee (SG) “loophole”. The measure ensures that an individual’s salary sacrificed superannuation contributions cannot be used to reduce the employer’s minimum SG contributions. The new law also makes SG payable on the pre-salary sacrifice base. We have included practical examples below, noting that the new legislation comes into effect on 1 July 2020.
End of 2020 Payroll Year – STP Finalisation
For some employers this will be the second year of STP finalisation. However, for all other employers, this will be the first year applying the new rules. The software providers have released detailed notes on how to complete the STP finalisation process.
If you are reporting under STP, there is no requirement to provide employees with PAYG Payment Summaries. Rather, the information is accessed by the employee via their myGov account.
Employers must make their STP finalisation declaration for each employee after the last payment for the financial year. For the 2019–20 financial year the finalisation declaration deadline is:
- 14 July for employers with 20 or more employees
- 31 July for employers with 19 or fewer employees.