A raft of legal changes are expected to come into effect in Australia from 1 July, including changes to minimum wages, international student work hours and the government’s promised energy bill relief.
So what exactly are the changes and how will they work?
Minimum wage increases
The national minimum wage will increase to $23.23 an hour (up from $21.38) or $882.80 a week (up $70.20 from $812.60) based on a 38-hour week for a full-time employee.
It amounts to a 5.75% increase to minimum award wages, with the boost coming into play in the first fully pay period on or after Saturday.
Aged care workers get pay rise
The government has also decided to fund the Fair Work Commission’s decision on the union-led work-value case, amounting to a 15% increase to award wages for registered nurses, personal care workers and homecare workers, among other aged care staff.
This is in addition to increases in the minimum wage, which means aged care staff could be looking at a 20% or more increase to their hourly rate.
Increases to super guarantee
The super guarantee will increase from 10.5% to 11%, with the rate to progressively increase to 12% by July 2025. The super guarantee is the contribution employers are required to make into a super fund on behalf of their employees.
The increase will amount to an extra $330 a year for most workers. At retirement, a 30-year-old on the median wage is expected to have an extra $18,300.
Energy bill relief
Households and small businesses will be able to access power-price relief from 1 July (Saturday), depending on where they are located.
Amounts will vary from state to state but pensioners, veterans, seniors and other concession card holders, recipients of the carer allowance, family tax benefit, and anyone eligible for existing state and territory electricity concession schemes will be eligible for a rebate.
Minimum income threshold increased for migrant workers
The government has lifted the temporary skilled migration income threshold (TSMIT), which is the minimum wage payable to employee-sponsored workers, to $70,000.
It’s the first time the TSMIT has been increased since 2013, and is the first action taken in response to the independent Review of the Migration System.
It is hoped the increased threshold will prevent migrant worker exploitation, and prevent employers from undercutting wages offered to Australian workers.
Cap on work hours for international students
All international students will now be limited to 48 hours of work a fortnight, after seeing the cap relaxed during the pandemic.
While international students working in the aged care sector will continue to work unrestricted hours until 31 December, the rest of the international student population are being urged to focus on their studies.
Increased parental leave
The current entitlement to 18 weeks’ paid parental leave is going to be increased after being combined with the current dad and partner pay entitlement to two weeks.
This means that partnered couples can claim up to 20 weeks’ paid parental leave between them. Single parents can also access the full 20 weeks.
The changes will affect employees whose baby is born or placed in their care on or after Saturday.
