Payroll News Sep 2024
Welcome to JobBag Payroll News for June 2024. Happy End of financial year everyone!
Major changes to employment definitions under Fair Work Act could impact how you deal with independent contractors
Independent contractor changes
A new definition of employment has been added to the Fair Work Act to help determine the meaning of ‘employee’ and ‘employer’. This is used by some businesses to work out whether a worker is an independent contractor (contractor) or an employee.
Fair work independent contractor changes
Casual employment changes
Right to disconnect
https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes
Superannuation on Parental Leave Pay
Under new legislation, the government will now pay superannuation on government funded Parental Leave Pay for eligible parents with babies born or adopted on or after 1 July 2025.
Payday Superannuation Update
In the 2023/24 Budget, the Government announced a reform to align employers’ payment of Superannuation
Guarantee (SG) contributions with salary and wages, instead of the current quarterly requirement. This is proposed
to take effect from 1 July 2026.
Each time OTE is paid, there will be a new 7 day ‘due date’ for contributions to arrive in the employees’
superannuation fund. This provides time for the movement of funds through the payment system, including clearing
houses. An employer will be liable for the new SG charge unless SG contributions are received by their employees’
superannuation fund within 7 calendar days of payday.
Reminder: myGovID is now myID
The name has changed – but not how you use it. If you’ve already set up myID and use it to access government services like Online services for DSPs, you don’t need to do anything.
Remember to stay vigilant and watch out for scammers seeking to take advantage of the name change. There’s no need to set up a new myID or reconfirm your details. If you've been asked to do this in a message, email or by visiting a website, it’s a scam.
More at www.myID.gov.au.
On 26 August 2024
- » A new definition to help determine the meaning of ‘employee’ and ‘employer’
» Changes to casual employment including how casual work is defined, the pathway to permanent employment,
and employee and employer responsibilities.
» A new right to disconnect for eligible employees (this doesn’t apply to small businesses until 26 August 2025). Eligible employees will have the right to refuse employer or third-party contact outside of working hours.
» New minimum standards and protections for ‘employee-like workers’ in the gig economy and certain industries including:
- * Workplace delegates’ rights for regulated workers
- * Unfair deactivation or unfair termination of regulated workers
- * Collective agreements for regulated workers
- » Independent contractor ‘unfair contracts’ disputes
https://www.fairwork.gov.au/find-help-for/independent-contractors/whole-of-relationship-test
https://anisimoff.com.au/when-a-spade-is-not-a-spade-major-changes-to-employment-definitions-under-fair-work-act-could-impact-how-you-deal-with-independent-contractors/
https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes
Casual Employment Information Statement (CEIS) distribution guidelines
The Casual Employment Information Statement (CEIS) is a document with information about employment conditions that an employer must provide to all new casual employees.
From 26 August 2024, the CEIS will need to be provided to:
» new casual employees before, or as soon as possible after, the start of their employment
» all casual employees employed by non-small businesses as soon as possible after
- * 6 months of employment
- * 12 months of employment and every subsequent period of 12 months of employment
» all casual employees of small businesses as soon as possible after 12 months of employment.
https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/casual- employment-changes#:~:text=Employment%20Information%20Statement-,These%20changes%20start%20on%20 26%20August%202024.,to%20all%20new%20casual%20employees.&text=all%20casual%20employees%20of%20 small,after%2012%20months%20of%20employment.
Changes to paid & unpaid parental leave 1 July 2024
Increase to Government Paid Parental Leave from 1 July 2024
If a child’s birth or adoption is from 1 July 2024 the total Parental Leave Pay available to families increased to 22 weeks or 110 days, based on a 5 day work week.
Pay day super
https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/payday-superannuation