Key Changes in the 2024 Federal Budget Impacting Small Businesses

The 2024 Federal Budget has introduced several significant changes that will affect small businesses across Australia. Here's a summary of the key updates which may effect your practise:

National Minimum Wage

As of July 1, 2024, the National Minimum Wage has been increased by 3.75%, now standing at $24.10 per hour, or $915.90 per week. This adjustment aims to support low-income workers in coping with the rising cost of living while ensuring fair compensation for their labour​.

Superannuation Guarantee

The superannuation guarantee rate has also seen an increase, rising from 11% to 11.5%. This change is part of a gradual plan to elevate the rate to 12% by July 2025. The incremental increase is designed to enhance the retirement savings of Australian workers, ensuring better financial security in their later years.

Employment Conditions

Starting in August 2024, new definitions and frameworks for casual employment and independent contractors will come into effect. These changes include:

• Casual Employment: Casual employees will now have the option to transition to permanent roles under certain conditions, providing greater job security.

• Independent Contractors: New protections will be introduced for independent contractors working on digital platforms, ensuring they have similar safeguards to employee-like workers. This aims to address the evolving nature of the workforce and provide fair treatment across different types of employment.

These updates reflect the government's efforts to balance economic growth with the need to provide fair and supportive working conditions. Small businesses should review these changes carefully to ensure compliance and to optimise their operations in light of the new regulations.