Upcoming changes in the workplace and industrial relations space starting financial year 2023-24
The upcoming financial year 2023-24 is bringing numerous changes to laws, wages, entitlements and benefits in the workplace and industrial relations space. Below are the important changes that both employees and employers should be aware of.
Increase of the national minimum wage
Increasing from $21.38/hour to $23.23/hour and $812.60/week to $882.80/week based on a full-time employee – an increase of 8.6%.
Takes effect from first full pay period after 1 July 2023.
Increase in modern award minimum rates of pay
Increase of 5.75% for all awards.
Takes effect from first full pay period after 1 July 2023.
Increase to wages in the aged care sector
Some employees covered by the following awards will receive an increase in wages by 15% (in addition to the 5.75% increase that applies to all awards):
Aged Care Award;
Social, Community, Home Care and Disability Services Industry Award; and
Nurses Award.
Takes effect from first full pay period after 30 June 2023.
Changes to parental leave
The current entitlements through Services Australia to 18 weeks of Parental Leave Pay will be combined with the 2 weeks of Dad and Partner Pay.
This means partnered couples will be able to claim up to 20 weeks of paid parental leave between them. Singles can access the full 20 weeks.
Parents will also be able to use their Parental Leave Pay until their child turns 2 with increased flexibility e.g. parents can take paid parental leave in blocks as small as a day at a time, and with periods of work in between.
Takes effect from 1 July 2023 and applies to employees who have a child after this date.
Increase to Superannuation Guarantee contribution payments by employers
Increasing from 10.5% to 11%.
Effective from 1 July 2023.
Increase to the high-income threshold
Increasing from $162,000 to $167,500 from 1 July 2023.
Award and agreement-free employees are excluded from making an unfair dismissal claim if they earn more than this threshold.
A modern award will not apply to an employee who is given a guarantee of annual earnings for more than $167,500 from 1 July 2023.
Increase to the unfair dismissal compensation cap
The maximum compensation that can be awarded by the Fair Work Commission in an unfair dismissal proceeding will rise from $81,000 to $83,750.
Effective from 1 July 2023.
Increase in cap for small claims process
The monetary cap for recovering unpaid entitlements via the small claims court process will increase from $20,000 to $100,000.
Effective from 1 July 2023.
Increase in Fair Work Commission filing fees
Increasing from $77.80 to $83.30 for unfair dismissal, general protections, anti-bullying and sexual harassment matters.
Effective from 1 July 2023.
If you need advice on implementation and compliance with these new changes, please contact:
Jim Babalis
Special Counsel
T 03 5225 5205
E jbabalis@ha.legal
Sonia McCabe
Senior Associate
T 03 5226 8558
E: smccabe@ha.legal
Matthew Synoradzki
Lawyer
T 03 5226 8542
E msynoradzki@ha.legal
