
15 legal changes for businesses from 1 July
With the commencement of the 2023-24 financial year, there are several legal changes that businesses should be across.
These changes encompass a wide range of areas, including wages, superannuation, asset depreciation, energy bills, migration, dismissal claims, parental leave, taxation and more.
Here's a concise overview of the key changes from 1 July 2023 businesses need to know:
1. Minimum wage increase: The National Minimum Wage rises to $882.80 or $23.23 per hour. Modern award minimum wages will also increase by 5.75%.
2. Superannuation guarantee rate: The SG rate has increased from 10.5% to 11% and is set to further increase to 12% by 2025.
3. Changes to asset depreciation rules: The Temporary Full Expensing tax regime has ended, reverting to the Instant Asset Write-Off model. Businesses with an annual turnover of less than $10 million can claim an immediate tax deduction on assets up to $20,000.
4. Energy bill relief: Eligible small businesses can expect energy bill relief of up to $650, provided by the federal government and some states and territories.
5. Migration changes: Employers sponsoring temporary skilled migrants must pay them more than the Temporary Skilled Migrant Income Threshold (TSMIT), now increased to $70,000.
6. Cap on international worker hours: The cap on work hours for student visa holders has been reinstated, allowing a maximum of 48 hours of work per fortnight.
7. Unfair dismissal high-income threshold: The income threshold for unfair dismissal claim eligibility increased to $167,500, with a corresponding rise in the compensation limit to $83,750.
8. Fair Work Commission fees: Fees for applications related to dismissal, general protections and workplace issues have increased, with the application fee rising to $83.30.
9. Parental leave: The entitlement to paid parental leave has been extended to 20 weeks, combining the existing 18-week entitlement with two weeks of Dad and Partner Pay.
10. Sharing Economy Reporting Regime: The Australian Taxation Office will start collecting data from accommodation booking platforms and rideshare apps to ensure correct income tax payment for individuals earning through these platforms.
11. Penalty unit increase: The value of penalty units has increased from $275 to $313, impacting fines in both criminal and civil proceedings.
12. Business name and company name registration fees: Registration fees for companies and business names have risen, with the cost of registering a company increasing by 7%.
13. Small claims procedure: The cap on unpaid entitlements that can be claimed through the small claims process increases from $20,000 to $100,000.
14. Child employment laws: Victoria will transition from a permit system to a licensing system for hiring children under the age of 15, streamlining the process for businesses.
15. WorkCover premiums: WorkCover premiums in Victoria have risen from 1.272% to 1.8% of payroll, reflecting a 41% increase to support the financial stability of the WorkCover insurance system.
Business owners are advised to review these changes in detail and adapt their practices accordingly to ensure compliance with the updated legal requirements. For clarification or assistance, please contact the team at Baumgartners in Melbourne on 03 9851 9000.
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15 legal changes for businesses from 1 July
With the commencement of the 2023-24 financial year, there are several legal changes that business owners should be across.