As part of the Fair Work Commission’s Annual Wage Review 2022-23, from 1 July 2023:
- the National Minimum Wage increases to $882.80 per week or $23.23 per hour
- award minimum wages increase by 5.75%.
- Other award wages, including junior, apprentice and supported wages that are based on adult minimum wages, will get a proportionate increase.
The increase applies from the first full pay period starting on or after 1 July 2023.
Other 1 July changes
Paid Parental Leave scheme
From 1 July 2023, the Paid Parental Leave scheme changed.
From 1 July 2023, partnered couples can claim up to 20 weeks’ paid parental leave between them. Parents who are single at the time of their claim can access the full 20 weeks.
The former Dad and Partner Pay entitlement has been removed. The additional 2 weeks’ pay has been combined with the existing entitlement to 18 weeks Parental Leave Pay.
These changes affect employees whose baby is born or placed in their care on or after 1 July 2023.
Other changes include:
- allowing partnered employees to claim a maximum of 20 weeks’ pay between them, with each partner taking at least 2 weeks (except in some circumstances)
- introducing a $350,000 family income limit (indexed annually from 1 July 2024) for claiming paid parental leave pay
- expanding the eligibility rules for fathers or partners to claim paid parental leave pay
- making the whole payment flexible so that eligible employees can claim it in multiple blocks until the child turns 2
- removing the requirement to return to work to be eligible for the entitlement.
Services Australia is the government organisation that manages the paid parental leave scheme. For more information on the changes, visit Services Australia – Changes if you get family payments.
Superannuation guarantee increase
From 1 July 2023, the superannuation guarantee will increase from 10.5% to 11%.
If you want to understand your super obligations or entitlements, contact the Australian Taxation Office (ATO) for help and advice at ATO – Contact us.
Aged care sector
Direct care and some senior food services employees in the aged care sector will receive a 15% wage increase from 30 June 2023.
Minimum wages increase from 1 July 2023
The Fair Work Commission has made a decision to increase minimum wages by 15% for some employees working in aged care. Please note this decision is separate to the Annual Wage Review.
This increase applies to eligible employees covered by the:
- Aged Care Award
- Social, Community, Home Care and Disability Services Industry (SCHADS) Award
- Nurses Award.
It takes effect from the start of the employee’s first full pay period on or after 30 June 2023.
Who the increase applies to
The increase applies to direct care employees working in aged care.
Direct care employees are those who work in caring roles in the following award classifications:
- Aged Care Award: personal care workers (PCWs) and recreation/lifestyle activities officers
- Nurses Award: nursing assistants, enrolled nurses, registered nurses, nurse practitioners working in aged care
- SCHADS Award: home care workers working in aged care.
The 15% increase also applies to the most senior food services employee (levels 4-7):
- covered by the Aged Care Award
- working at a particular aged care facility or site.
Who the increase doesn’t apply to
The 15% increase doesn’t include other employees in the aged care sector. This includes:
- support and administrative employees
- chefs and cooks covered by the Aged Care Award who aren’t the most senior food services employee at a particular aged care facility or site.
From the first full pay period on or after 1 July 2023:
- the National Minimum Wage increased to $882.80 per week or $23.23 per hour
- award minimum wages increased by 5.75%.
Supported Employment Services Awards
From 30 June 2023, the Supported Employment Services Award changed. The changes include:
- minimum rates
- classifications
- supported wage assessments.
Find more information, please contact us.
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