Minimum wage and award minimums are set to rise July 1st

Minimum wage and award minimums are set to rise July 1st

The Fair Work Commission’s annual wage review has resulted in two announcements made this week:

• The National Minimum Wage will increase by $40 per week, (an increase of 5.2%) from 1 July 2022
• Award Minimum Wages will increase by 4.6%, which is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for a full-time employee.

Please note, A handful of awards will not have the increase take effect until 1 October 2022.

1 July 2022 Wage Rate Schedules (including changes to allowances) for key Awards will be available via Fairwork. To access the wage schedules, refer to the Award that applies to your business www.fwc.gov.au

Costs are increasing

In July 2022, the superannuation guarantee statutory rate will rise 0.5 per cent to 10.5%.

In addition to the rising cost of labour, inflation is forecast to put upward pressure on everyday items. That will likely increase your general running costs and the price of materials. Petrol prices are up, for instance, and supply chain issues have driven up the cost of many imported products.

Time to review your pricing

Is it time to put your prices up? Ideally, your business should increase costs by a tiny amount each year, rather than by a big jump every five years, for instance. Small increases help prevent price shocks for customers, and keep your business in line with the rest of the market.

Can you also cut costs?

If you don’t think increasing your prices is an option, or you still need to make more of a change, you may need to cut back your spending. We look at your business line by line, so we can help you identify areas where you might be able to trim the fat.

Give us a call or drop us a note – we’re here to help.