Award minimum wage increases 4.6%
Some 2.7 million Australians are covered under some type of modern award, which will rise by 4.6 per cent. Those who earn more than $869.60 a week will get a 4.6 per cent increase, while those earning less than that amount will get $40 more a week.
However, people covered under the aviation, hospitality or tourism industry awards will see their pay increases kick in from October 1 instead.
Energy prices will rise
It’s coming: electricity bills will get bigger from July 1 onwards. The default market offer (DMO), which is the price cap that the energy regulator (AER) implements to stop power companies charging whatever they want, will rise for residents and small businesses alike in NSW, Victoria, south-east Queensland, and South Australia.
Depending on where they’re based, small businesses stand to cough up between $270 and $1146 extra a year on power bills, which will affect businesses from CBD-based barbers to dairy farmers.
The new DMO price will vary depending on which electricity distributor delivers power to your location. The AER has a breakdown here. Victorians should refer to the Victorian Default Offer, which is increasing by 5 per cent from July 1.
What you should know: It’s worth shopping around for a better deal. Experts believe power bills could be one of the biggest increases in expenses for small businesses this year.
Superannuation rate will rise to 10.5%
The superannuation guarantee (SG), or the minimum rate of superannuation that employers must pay to their employees, will rise from 10 per cent to 10.5 per cent starting July 1.
The SG has been rising for a few years now, and will keep rising by 0.5 per cent every year until it hits 12 per cent on July 1, 2027.
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What you should know: The SG is typically paid on top of your base pay. However, those on superannuation-inclusive salary packages will see their take-home pay decrease slightly, as the money is being diverted to nest eggs instead of bank accounts.
$450 superannuation eligibility threshold scrapped
Until now, those who earned less than $450 a month weren’t entitled to superannuation payments from their employer.
But from July 1 onwards, this ceiling will be removed, meaning employers have to pay superannuation regardless of how much they earn that month.
What you should know: This rule only applies to adults. Employees below the age of 18 will only receive superannuation if they work more than 30 hours a week.
Business name fees to rise
Registering your business for the first time? Reserving a business name? Need to deregister your company? Those fees are going up. The financial services watchdog, the Australian Securities and Investments Commission (ASIC), raises its business name fees every year in line with inflation. ASIC’s breakdown is here.
Here are some other state-specific changes coming:
NSW
The Dine & Discover program, introduced to support small businesses emerging from lockdowns, will come to an end.
Residents are no doubt rushing out to cinemas, restaurants and cafes to use their vouchers before the scheme ends on Friday. More than $300 million of it has gone unused, which has raised some questions about how well it’s actually stimulated the economy.
Queensland
A new Small Business Support and Wellness Package program is being rolled out from July that will connect operators with a local wellness coach to work through individual personal and business challenges.
Western Australia
The ban on single-use plastic kicks in. Small businesses can no longer supply plastic shopping bags with handles, disposable plates, cutlery or plastic straws, or polystyrene foam takeaway containers.
The ban on these items actually began at the beginning of the year, but WA will start enforcing it from July 1.
The sale of single-use plastic cups will be prohibited from October 1.
ACT
The supply of single-use plastic straws, cotton buds with plastic sticks, and plastic products made of oxo-degradable plastic will be banned. This comes on top of Canberra’s already-existing ban on plastic cutlery, drink stirrers, foam takeaway boxes, and lightweight shopping bags.
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