The 2022-23 financial year comes with new legislation and rules that may affect the way you run your business. Aside from important tax measures, there are other changes that you should be aware of that may impact your business.
Business owners are faced with the challenge of maintaining business operations, especially with the growing costs of input materials, petrol prices, electricity costs, interest rates, etc.
Here are other important changes starting 1 July 2022 that you need to know that may also affect your operation costs.
Minimum wage hike
In response to the rising cost of living, the Fair Work Commission has decided to increase the national minimum wage by 5.2% leaving it to $21.38 per hour or $812.60 per week. Award rates are also set to increase by 4.6%.
The decision was driven to support low-paid workers who are gravely challenged by the cost of living burdens, inflation, rising interest rates and petrol prices.
Super Guarantee changes
From 1 July 2022, employees are entitled to receive super guarantee (SG) payments from their employers at a rate of 10.5%, regardless of how much they earn. This is after the decision to increase the SG rate from 10% to 10.5%, as well as the removal of the $450 eligibility threshold for SG.
If you have employees under the age of 18, you are only required to make super payments if they work for more than 30 hours per week.
Do you need to increase your prices?
With the rising input costs, you might be considering increasing your prices. It’s a healthy practice to increase your prices by a small amount each year to keep up with the changes in input costs. And with the growing costs of production, your clients might also be expecting you to increase your prices as well.
Assess your costs and profit margins to ensure that your pricing is right. It would also be helpful to analyse the market to ensure that you are setting a price that they can handle. Most importantly, make sure that you are able to communicate your price increase to your clients clearly and properly.
Do you have any questions about these changes by the start of the new financial year? Need a hand in your pricing strategy or maybe in managing your cash flow? Reach out to our team. Send us a message or give us a call at 07 3878 9181.