Minimum Wage Increase & SuperStream Reminder
This week, we’d like to remind you of a couple of important news items for those of you dealing with payroll. Two important changes are occurring from 1st July 2016. Firstly, the minimum wage rate will increase and also, all businesses employing staff must be SuperStream-ready. Read more below about both of these payroll items.
Minimum Wage Increase
The minimum wage has just been increased by 2.4% to $672.70 per week, or $17.70 per hour (up from $656.90 or $17.29). This increase applies to your first payrun on or after 1st July 2016. So this means that even if your pay period includes June dates, if the payrun date is in July, then you must apply the new rate.
The increase applies to any employees whose wages are derived from the national minimum wage, a modern award and some registered agreements. Most award rates will increase by 2.4% and you should check your award before processing the first payrun after 1st July to ensure you are using the correct pay rate.
If you run a small business and employ 19 or fewer employees, you must be ready to start using SuperStream by 1st July 2016 (If you have more than 20 employees, you should already be using SuperStream).
Okay. But what is Superstream?
Superstream is a government reform that describes the way you need to pay your employees’ superannuation contributions. Specifically, it requires that you make your payments electronically. So basically, this means no more cheques and no more filling in forms and posting them off!
What do I have to do to get ready?
You need to choose the electronic payment method you will use to comply with Superstream “rules”. You can use various methods like:
- Your accounting software’s super payment feature (Xero, QuickBooks Online and Saasu all have this feature).
- The ATO Small Business Superannuation Clearing House (this is free to use).
- Superannuation Fund online systems (check with individual funds – they all have their own portals).
You also need to gather key information from your employees like:
- Tax File Number
- Superannuation fund USI (unique super identifier) and/or ABN
- General contact information
All of this information needs to be entered into your chosen super payment system (see above). Your payroll officer should do this or of course, we can do it for you.
Here is a handy step-by-step guide to help you get started.
Also, here is a short video which explains a little more about Superstream.
Remember, if you are having trouble sorting all of this out, we are here to help but don’t leave it too long, June 30 is just around the corner!