1 July 2024 overhaul: Essential updates every business must know

Summary: As of 1 July 2024, significant legislative changes impacting Australian businesses have come into effect. These include a 3.75% increase in the National Minimum Wage, a rise in the superannuation guarantee rate to 11.5%, and a ban on engineered stone products. Electrical contractors must update their payroll systems, comply with new procurement policies, and adjust to changes in casual and independent contractor employment laws to ensure compliance and optimise operations.

Several significant legislative changes took effect on 1 July 2024, impacting businesses across Australia. For electrical contractors, understanding these changes is essential to ensure compliance and optimise business operations. This comprehensive guide walks you through the critical updates regarding the National Minimum Wage, superannuation guarantee, business name and company registration fees, the engineered stone ban, environmentally sustainable procurement policies, and changes to casual and independent contractor employment laws.

National minimum wage increase

Effective from 1 July 2024, the National Minimum Wage rose by 3.75%, bringing the new rate to $24.10 per hour or $915.90 per week. This change applies from the first full pay period starting on or after 1 July 2024. For instance, if your pay period begins on Wednesday, the new rates took effect from Wednesday, 3 July 2024.

This increase also extends to minimum award wages, which rose by the same percentage. Ensure your payroll systems are updated accordingly to reflect these changes and maintain compliance. It’s crucial for electrical contractors to verify which award applies to their employees by using resources like the “Find my award” tool provided by the Fair Work Ombudsman.

Superannuation guarantee rate increase

The superannuation guarantee (SG) rate increased from 11% to 11.5% starting 1 July 2024. This mandatory employer contribution ensures that employees’ retirement savings continue to grow. To avoid penalties, ensure your payroll system is adjusted to reflect the new SG rate and make timely payments to the appropriate superannuation funds.

Business name and company registration fees

The Australian Securities and Investment Commission (ASIC) adjusted business name and company registration fees in line with the Consumer Price Index (CPI) for the March quarter. Here’s a brief overview of the fee changes:

Application for registration as an Australian company (proprietary company with share capital): from $576 to $597
Reserving a company name: from $59 to $61
Annual review fee for a proprietary company: from $310 to $321
Registration or renewal of a business name for one year: from $42 to $44

These updated fees took effect from 1 July 2024. Electrical contractors should budget for these increased costs to maintain their business registrations without interruption.

Engineered stone ban

From 1 July 2024, the manufacture, supply, processing, and installation of engineered stone benchtops, panels, and slabs were banned due to health risks associated with silica dust exposure. States and territories may have specific transitional arrangements, so it is vital to check local regulations.

To comply, cease all activities involving engineered stone and seek alternative materials that do not pose the same health risks. Ensure your workers are informed about this change and provide necessary training on new materials and safe work practices.

Environmentally sustainable procurement policy

The Australian Government’s new Environmentally Sustainable Procurement Policy (ESP Policy) took effect on 1 July 2024. Businesses supplying goods or services to the government must now substantiate their environmental claims and demonstrate compliance with sustainability requirements. This policy aims to encourage environmentally friendly practices and sustainable procurement.

For electrical contractors, this means adopting more sustainable practices and possibly investing in greener technologies and materials. Familiarise yourself with the Sustainable Procurement Guide and consider attending masterclasses or training sessions to better understand how to meet these new requirements.

Casual employment changes

Significant changes to casual employment laws will commence on 26 August 2024, introducing a new definition of casual employment. An employee will be considered casual if there is no firm advance commitment to ongoing work and they receive a casual loading or pay rate. Additionally, a new pathway for casual employees to convert to permanent employment will be introduced.

Employers must provide the Casual Employment Information Statement (CEIS) to all new casual employees. Ensure your HR practices and employment contracts are updated to reflect these changes and facilitate casual conversion where eligible employees express interest.

Independent contractor changes

From 26 August 2024, changes to definitions and protections for independent contractors will be implemented. A new definition of ’employee’ and ’employer’ will help clarify working relationships, particularly for those working through digital platforms or in the road transport industry. Contractors can apply to the Fair Work Commission if they believe their contract contains unfair terms.

Electrical contractors who engage independent contractors should review their contracts to ensure compliance with the new definitions and protections. It’s advisable to seek legal advice to adjust contracts as necessary and protect your business from potential disputes.

Right to disconnect

Starting 26 August 2024 for non-small business employers (and 26 August 2025 for small business employers), eligible employees will have the right to disconnect, meaning they can refuse employer or third-party contact outside of working hours unless such refusal is unreasonable. This change promotes work-life balance and ensures employees are not overburdened with work-related communications outside their normal working hours.

Electrical contractors should establish clear policies regarding out-of-hours communication and respect employees’ rights to disconnect. This might involve adjusting expectations for response times and ensuring compensation is provided for any necessary out-of-hours work.

Preparing for the changes

To prepare for these changes, electrical contractors should:

Update payroll systems: Ensure your payroll systems reflect the new minimum wage and superannuation rates.
Review and adjust budgets: Account for the increased business registration fees and potential costs associated with the ESP Policy.
Cease use of engineered stone: Transition to safer materials and train staff accordingly.
Revise employment practices: Update HR policies to comply with new casual and independent contractor regulations.
Implement the right to disconnect: Develop policies to respect employees’ right to disconnect and communicate these changes clearly to your team.

By staying informed and proactive, electrical contractors can navigate these changes smoothly and continue to operate efficiently and compliantly. For further details on each update, refer to the respective regulatory bodies such as the Fair Work Ombudsman, Australian Taxation Office, and ASIC.