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It has been an unpredictable start to the new financial year where about half of Australians are struck in some form of lockdown restrictions during July 2021. Unfortunately, this is still the time where considerations are required to some of the legal changes which have occured at the start of this new financial year. The following is a quick guide to not all but some of the key legal changes we feel that your business should know about for the 2021-22 financial year.

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TAX

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(From 01 July 2021)

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• (COMPANIES) The corporate tax rate for small/medium companies (with aggregated turnover under $50 million) will reduce to 25% in the 2021-22 financial year

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• (BUSINESS) The turnover threshold for access to a range of small business tax concessions is rising from $10 million to $50 million.

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SUPERANNUATION

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(From 01 July 2021)

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The superannuation guarantee rate has increased to the following rate from 01 July 2021.

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• Superannuation Guarantee rate increased to 10%  (0.5% increase from 9.5%)

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The above rate is expected to increase annually on 1 July until it reaches 12% on 1 July 2025.

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If you are still using the 9.5% rate after July 2021, this must be corrected before 28 October 2021.

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(From 01 November 2021)

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For any new employees commencing after 01 November 2021 and a superannuation fund is not chosen, the employer would need to request the employee’s ‘stapled super fund’ (an existing super account of an employee) details from the ATO. 

 

Therefore, from 1 November 2021 employers are required to follow the following steps,

 

Step 1: Choice of super fund

 

There is no change to the initial step and each new employee must be provided a Super standard choice form. The employer must then pay the employee’s superannuation into the fund, if one has been selected by the employee.

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Step 2: “NEW” if super fund not chosen 

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If an employee does not choose a super fund, the employer is required to request the employee’s ‘stapled super fund’ from the ATO. This can be done by,

 

• logging into ATO’s ‘Online services for business’, and 

• accessing ‘EMPLOYEE SUPER ACCOUNTS’ 

 

The ATO will then provide the employee’s ‘stapled super fund’ if one exists and the employer must pay the superannuation into this account. This step can also be completed by a tax agent.

 

Step 3: Pay super into a default fund

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Employer would only have to pay the superannuation into a default fund if,

 

• an employee does not choose a super fund, and

• the ATO informs that the employee does not have a stapled super fund

 

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Please read here for further details.

 

 

(Expected in the future)

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Although not legislated as of 01 July 2021, it is also expected shortly that employees earning less than $450 a month will become entitled to the superannuation guarantee. This would mean that ALL workers on ANY income will receive the minimum superannuation guarantee payments.

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RECENT CHANGES TO WORKPLACE LAWS

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(please visit Fair Work Ombudsman as we are unable to advice of each individual changes)

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(From 27 March 2021)

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Some workplace rights and obligations have changed for casual employees from 27 March 2021, including:

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• providing employees with a copy of the Casual Employment Information Statement

• amended definition of a casual employee

• updated rules to convert from casual to full-time or part-time employment (offering of ‘casual conversion’ to casual employees)

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For information, visit Changes to casual employment.

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(From 01 July 2021)

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There was a 2.5% increase in the minimum wage (changes will not commence for some industries until September and November 2021)

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For information, visit Annual Wage Review 2021.

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Also the Fair Work Commission have updated some terms and conditions in several awards, including:

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• changes to spread of hours in some awards

• changes to part-time hours in the Retail Award

• Health Services Award coverage changes.

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For information, visit Other award updates starting on 1 July.

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(Before 27 September 2021)

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Employers other than small business employers (click link for definition) were required to assess whether any existing casual employees who have been employed before 27 March 2021 were eligible to be offered a permanent position by 27 September 2021.

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Small business employers are not required to offer ‘casual conversion’ but an eligible casual employee can request to convert to permanent employment at any time after working for their employer for 12 months. Also, existing casuals working for a small business employer before 27 March 2021 can request ‘casual conversion’ anytime if they are eligible. 

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For information, visit casual employees becoming permanent.

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WAGE INSPECTORATE VICTORIA

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(From 01 July 2021)

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The law has become stricter for employers in Victoria who deliberately and dishonestly underpay employees or not provide all employee entitlements. Employees in Victoria may now ‘prosecute’ their employer for underpayment of wages (or entitlements) under the new Wage Theft Act 2020 (Vic). 

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Penalties have now been imposed of up to $218,088 or up to 10 years’ jail for individuals and up to $1,090,440 for companies.

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As such, a new Government body, ‘Wage Inspectorate Victoria’ has been set up to enforce this new law and has the power to recommend criminal penalties should it be deemed necessary.

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For information, visit Wage Inspectorate Victoria.

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(Updated 1 Oct 2021)

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Disclaimer: 

Information based on facts we have summarised to the above updated date. We have not considered your personal circumstances and should you wish to consider it, please seek professional advice.