The benefits of building an investment property

When thinking of an investment property, your first thought probably isn’t an empty block of land. But did you know that there are many advantages to building an investment property? Not only can you build the property to be fit-for-purpose, there are long-term financial benefits that can boost your cash flow. Read more

Taking advantage of the JobMaker Hiring Credit

The Federal Government’s JobMaker Hiring Credit scheme has officially passed Parliament, providing incentive for employers to increase their staff headcount and hire new workers. Read more

Increase to minimum wage in Australia

The Fair Work Commission (FWC) announced earlier this year that there would be an increase to the minimum wage in Australia, coming into effect on three different dates for different groups of industry awards.

The minimum wage has been increased to $753.80 per week or $19.84 per hour, an increase of 1.75%. This constitutes an increase of $13.00 per week, or 35 cents to the hourly rate. The increase will result in pay rises for more than two million Australians who are paid the minimum wage or have their pay set by awards that increase in line with the decision.

The FWC took a cautious approach in making the decision to increase the minimum wage by 1.75%, taking into consideration the current economic downturn and the significant rise in unemployment in response to COVID-19.  Whilst the minimum wage increase did not meet the union’s request of a 4% rise, the FWC recognised that without a rise many low-income householders would be less able to meet their needs and would be at greater risk of poverty.

The decision to implement the increase on three different dates for different industries is based on restrictions to contain COVID-19.

 

When will your award increase?

Group 1 Awards – from 1 July 2020

  • Frontline health care & social assistance workers
  • Teachers and child care
  • Other essential services

Group 2 Awards – from 1 November 2020

  • Construction
  • Manufacturing
  • A range of other industries

The National Minimum Wage increase 1.75% for Group 2 Awards should have taken effect from the first full pay period on or after 1 November 2020.

Group 3 Awards – from 1 February 2021

  • Accommodation and food services
  • Arts and recreation services
  • Aviation
  • Retail
  • Tourism

For a full list of awards in each group, click here to view the Fair Work website.

National Training Wage

The operative date of wage increases for employees undertaking a traineeship under the National Training Wage will be in accordance with the operative date minimum wages for the Group 1, Group 2 and Group 3 Awards.

 

What should you do?

Employers should review their wage arrangements and implement the necessary wage increases to ensure the new minimum wage rates are met for your specific industry award. All minimum payment obligation must be met for each employee, including those receiving the JobKeeper subsidy.

Those paying above-award payments should also review their wage arrangements to ensure they are high enough to accommodate the increases in minimum wage.

 

If you have any questions or would like assistance in reviewing your wage arrangements to accommodate for the increase to the minimum wage in Australia, please give us a call on 03 5443 0344 or email afs@afsbendigo.com.au.

Client Update | October 2020

COVID-19 delayed the usual Federal Budget May delivery to the start of October, with Treasurer Josh Frydenburg announcing it as the “jobs budget”, aiming to secure Australia’s future. In one of the most important Budgets in Australian history, it focuses heavily on job creation, infrastructure, asset write-offs and personal tax cuts.

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Highlights of the delayed 2020-2021 Federal Budget

The Government has delivered the delayed 2020-21 Federal Budget (Budget) with Treasurer Josh Frydenberg announcing it as the “jobs budget”, aiming to secure Australia’s economic recovery. Read more

Five questions for boards to ensure a cyber-safe organisation

Cyber attacks are a constant threat for businesses, however, the COVID-19 pandemic even further heightened this threat and emphasised the importance of cyber security for directors. Read more

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Alternative turnover tests for JobKeeper Extension

The government has outlined alternative eligibility tests for the JobKeeper Payment Scheme for businesses that don’t fit into the standard turnover test from 28 September. Read more

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JobKeeper 2.0 – guidance for employers

The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021.

To receive the new JobKeeper Payments from 28 September 2020, the eligibility will be based on actual turnover change rather than projected change which was used when businesses first applied.

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Third round of Victorian business support explained

Updated 2 October.

The Victorian Government has announced a third round of financial support, the Business Resilience Package, to help businesses impacted by ongoing restrictions and prepare for COVID-19 normal business. Read more

Tips to ensure inclusive video meetings

COVID-19 has had a significant impact on our work and social life and put an end to a lot of our regular face-to-face interactions. As a result, online video meetings have become the norm for a lot of us. Read more