Federal Budget 2023/24 – An update for employers
The Federal Budget for 2023/24 was announced on Tuesday 9 May. As anticipated the focus was on providing cost-of-living relief in light of ongoing economic uncertainty. It also contained some super-related and other measures that may affect your workplace and your employees.
We’ve summarised the highlights below. It’s important to note that at the time of publication, these announcements are proposals only. We’ll keep you informed as developments occur.
- Introducing Pay Day Super
From 1 July 2026, you’ll be required to align your employees’ super guarantee (SG) payments with payment of their salary and other wages. Currently, SG is required to be paid quarterly.
The Government’s reasoning is that more frequent super payments will help make your payroll management smoother and make it easier for employees to keep track of their super payments.
We’ll share further information about pay day super and your obligations as it’s made available.
- Super Guarantee compliance
The Government will provide additional funding to the ATO to improve their ability to identify and act on cases of SG non-or-underpayment by employers. If you’re unsure about your super requirements, you can contact our client partnership team for assistance.
Measures acknowledging current economic challenges for employers
Recognising the challenging economic conditions facing small and medium-sized businesses, the Government announced several measures designed to ease the financial burden on employers during this time.
Some of these measures include:
- Energy price relief
- A small business tax amnesty
- Investment in helping small businesses against cyber threats, and
- A 15% global and domestic minimum tax for large multinational companies.
To view all the announcements aimed at supporting Australian businesses, head to budget.gov.au.
Additional changes to support employees’ financial wellbeing
- Cheaper childcare
The Government has committed to cheaper childcare from 1 July this year, reducing the cost of care and making it easier for parents and carers, particularly women, to participate in the workforce.
- More equitable Parental Leave Pay
From 1 July this year, Parental Leave Pay and Dad and Partner Pay will combine into a single 20 week payment. A new family income test of $350,000 p.a. will apply.
- Working hours and the Government Pension
Under this measure, pensioners may be able to earn up to $11,800 before their pension is reduced, supporting retirees who want to work, or work more hours, to do so without losing their pension.
Where to find out more
This is a snapshot of the changes announced in the Federal Budget 2023/24 for employers. Want to know more about how this budget might affect your or your employees’ personal super or finances? You can read more here.
For more information and to view all the measures that were announced visit budget.gov.au.