So…another financial year almost done. And if you’re in a better position now than you were this time last year: congratulations! Imaging how you’d feel this time next year if things improved even more? Here’s 6 HR things to do on 1 July 2023 to kickstart the new financial year.
1. Award rate changes
Award rates change from 1 July each year. Make sure you’re confident each of your team is classified under the applicable Award correctly (the Clerks’ Award for example, has 5 levels) and is being paid at least the minimum rate for their classification level.
2. Annualised salaries: contractual content and records-keeping
Pay your employees an annual salary? Make sure their Contract specifies they accept the annualised salary in lieu of any applicable Award entitlements and that you have all terms and conditions in place that go along with lawfully offering to renumerate your employees under an annualised salary arrangement. This is an easy one to get wrong (or miss a step) …and if you do, you can be hit not only for a hefty penalty from the Fair Work Commission for failing to comply with your Award obligations but also be liable to pay the person their annual salary PLUS any entitlements under the applicable Award, such as overtime, penalty rates and loadings.
3. Superannuation goes up to 11%
The Federal Budget in May 2023 maintained the Super Guarantee’s legislated increase to 12%. From 1 July 2023, the Super Guarantee will increase to 11%. It will continue to increase by 0.5% on 1 July each year until it reaches 12% in 2025.
4. People work better when they have goals
Consider putting in place a formal development plan for each employee for the new financial year. Why? Because it allows you to set goals for each person and easily measure their progress. And anything you can measure, you can improve. Having something formal in place really is a no brainer if you can see the link between your people hitting their specific targets and your business being more successful…at every level.
5. Get your psychosocial wellbeing house in order
From 1 April 2023, a new Code of Practice and Regulation, Managing the risk of psychosocial hazards at work, was approved and legally enforceable to all workplaces covered by the Work Health and Safety Act 2011 (WHS Act). This one’s not an option; under section 26A of the WHS Act, a person conducting a business or undertaking (PCBU) must:
6. And finally, a freebie!
Have a “new financial year reset meeting”. People are unsettled at the moment. And unsettled means lack of focus, costing you money. Knowing you have a plan and want to share this with them keeps your people calm, engaged and more productive. And the cost of sharing? Free. What’s not to like about that?
Need more info on the HR things you need to do on 1 July 2023? Give Bare Bones Consulting a call. We can help with advice on your lawful employment obligations and can also show you simple and cost-effective HR tactics and strategies to make this financial year your best ever.
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