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What’s Changing on 1 July 2022?

Super guarantee and the minimum wages are set to increase starting 1 July 2022.

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The inflation rate has, without a doubt, affected all of us. With the increasing prices of goods and utilities, business owners are challenged to keep up with the growing input costs and support business operations.

Challenging, here are some changes starting 1 July 2022 that may also affect your input costs.

 

Super Guarantee Changes

The super guarantee (SG) rate is set to increase from 10% to 10.5% from 1 July 2022. Aside from this, the $450 monthly eligibility threshold for SG will be removed. This means that workers are now entitled to receive SG payments from their employers, regardless of how much they earn. However, if you have employees under 18, employers must only pay SG if they work more than 30 hours per week.

 

Minimum Wage Increases

The Fair Work Commission has released its decision to increase the national minimum wage by 5.2% and the awards minimum by 4.6% to support 2.7 million workers who are pressured to keep up with the rising costs of living. The national minimum wage is $21.38 per hour or $812.60 per week.

 

Improve your Cash Flow

With the growing input costs, the pressure on business owners to improve their cash flow has also increased. To ensure your cash flow is stable to support the day-to-day running of your business, here are some things you can do.

  • Keep your books in order.
  • Create a cash flow forecast.
  • Reduce your overheads
  • Send out invoices promptly
  • Increase your prices if needed
  • Set aside a cash reserve

If you have any questions or concerns about the changes starting 1 July 2022, please do not hesitate to contact our team. Please send us a message today.

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