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July 1 Changes You Need to Know for Your Agribusiness

We’ve collected information for you on some of the July 1 changes you need to know to keep your agribusiness running smoothly.

It’s been a big year for industrial law changes, with the ‘Same Job, Same Pay’ Policy and significant reforms to the Fair Work Act 2009 (Cth) (FW Act) – the Secure Jobs, Better Pay Bill, not to mention the Anti-Discrimination and Human Rights Amendment (Respect@Work) Bill 2022.

Even more key changes are set to come into effect on July 1. Here’s what they mean for your agribusiness and employees.

Super Guarantee Increases

It’s time to get your payroll sorted for the increase to the superannuation guarantee on 1 July 2023. This year’s increase will see superannuation increase from 10.5% to 11%.

It’s also good to make sure you’re across the gradual increases, which will see the super guarantee reach 12% by July 2025.

Wage Increases

From 1 July wage increases for minimum wage earners and award employees will come into effect, following a ruling from the Fair Work Commission.

For employees who aren’t covered by an award, the minimum wage will go up from 1 July to $882.80 per week, or $23.23 per hour, and will apply from the first full pay period starting on or after 1 July 2023.

For employees covered by an award, minimum award wages will increase by 5.75%, also applying to the first full pay period starting on or after 1 July 2023.

Paid Parental Leave Changes

From 1st July Parental Leave and Dad and Partner leave entitlements will combine up to a single payment of 20 weeks at the national minimum wage rate, enabling both parents to take parental leave simultaneously.  From 1 July 2024 to 1 July 2026 this entitlement will increase further by 2 weeks per annum up to a total of 26 weeks. A threshold limit of $156,647 for individuals and $350,000 for families will apply.

Either parent will be able to claim parental leave and two parents will be able to take leave simultaneously. Parental Leave Pay will be allowed to be taken in blocks as small as one day at a time, with periods of work in between within 2 years of the date of birth.

Flexible Working Arrangements

Employees have the right under the FW Act to request flexible working arrangements in some circumstances.  From 6th June, additional consultation requirements will apply. The employer must also provide more detail about the reasons should a flexible working request be refused.

The legislation also paves the way for employees to lodge an appeal of the decision with the Fair Work Commission which will be able to arbitrate an outcome if an agreement cannot be reached.

Pay Secrecy Changes

New regulations by the Fair Work Commission in Australia promote workplace transparency and fairness by addressing pay secrecy. Since December 7, 2022, employees have the right to share or withhold pay information and inquire about it from colleagues. Employers cannot penalise employees for exercising these rights and pay secrecy terms in contracts after that date are unenforceable. Starting from June 7, 2023, pay secrecy terms will be prohibited in all employment contracts, with potential penalties for non-compliance.

The upcoming July 1 changes hold significant implications for your agribusiness and its employees. Stay informed and adapt to these changes to maintain a successful and compliant agribusiness.

For information about all the July 1 changes head to the Fair Work Ombudsman’s website.

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