75% off

for 3 months

Start fresh this new year with QuickBooks Online

Buy now

SALE

Buy now and
save 50% off today See plans & pricing

SALE

See plans & pricing

Start your business
Start your business
Run your business
Run your business
Grow your business
Grow your business
Accountants and Bookkeepers
Accountants and Bookkeepers
- Accountants and Bookkeepers
  Learn how accountants and bookkeepers can be productive in these articles & guides
- Learning and Development
  A range of informative content to enhance your QuickBooks experience.
Updates
Updates
- Product Updates
  Watch this space for monthly product updates.
- Intuit News
  Latest news, articles & guides

QuickBooks Blog

Need help choosing a plan?

1800 917 771 Schedule a call

Schedule call

Payroll

Your Guide to the National Minimum Wage Increase

By QuickBooks Australia

Published on June 4, 2024

The Australian government announced in June that the national minimum wage was to increase from 1 July 2022.

The national minimum wage has increased from $20.33 per hour to $21.38 per hour. This means an extra $40 per week for millions of Australians.

The rise constitutes a 5.2% increase and comes amid the rising cost of living crisis affecting the country.

Awards minimum wages have also increased by 4.6%. Awards are legal documents that set minimum pay rates and employment conditions in various industries covering millions of Australian workers.

So, what does this mean for business owners?

National Minimum Wage increase

The national minimum wage for non-award full-time employees is now $812.44 per 38-hour week.

The 5.2% increase is above the current inflation rate of 5.1%, reflecting an election promise of the Australian Prime Minister, Anthony Albanese, to announce a pay rise in line with inflation.

The Fair Work Commission (FWC), whose expert panel sits every year to review minimum wage, said the increase would affect more than 2.7 million workers.

The increase meant businesses had to begin paying the national minimum wage from the first full pay period after 1 July 2022.

Award minimum wage increase

Modern award minimum wages have increased by 4.6% or $40, whichever is higher.

For example, let’s say an employee works under the Manufacturing Award and earned a weekly wage of $805.40 before 1 July 2022. As that is below $869.60, the employee has since received a $40 increase in their weekly wage.

Alternatively, any employee under the Manufacturing Award who earned more than $869.60 before July now receives a 4.6% increase since that works out as more than $40.

Unlike the national minimum wage increase, the award increase is being rolled out in two stages.

For most awards, the changes came into effect on 1 July 2022, but employees under some awards within the aviation, hospitality and tourism industries had to wait until 1 October 2022.

Grow Your Business with QuickBooks

30-day free trial

Buy now and save

What else will change for business owners?

The 2022 national minimum wage increase also affects other payments, such as superannuation payments and penalty rates.

Penalty rates are higher pay rates that come into effect when an employee works on evenings, weekends, or public holidays, often associated with various modern awards.

Employers can use the FWC’s Pay and Conditions Tool to work out penalty rate increases related to the national minimum wage increase.

Superannuation payments are employer contributions to an employee’s retirement fund, they are a percentage of an employee’s wage. Since 1 July 2022, all businesses must now pay super for employees regardless of their wage.

The government removed the $450 per month threshold for super guarantee (SG) eligibility. The government also raised the SG rate from 10.5% to 11.5%, meaning Australians can put aside more money for retirement.

Over the coming years, the minimum superannuation contribution is expected to rise to 12% by 2025.

Keep Up to Date With QuickBooks

Keeping track of payroll changes can be challenging for business owners.

Employers were obliged to pay the increase in the first full pay period after 1 July 2022 meaning that this was a legal requirement that employers had to be aware of.

The FWC meets annually, meaning that business owners must pay attention to updates to ensure they are legally compliant year on year.

However, with Quickbooks Payroll, business owners do not need to spend time making new calculations to update payroll. Instead, this is all done automatically within the system.

As an employer, business owners have enough to worry about keeping employees happy without dissecting the constantly changing obligations regarding pay, especially when it’s never a one-size-fits-all solution for staff. They want to compensate employees fairly without any fuss.

QuickBooks Payroll makes payroll a breeze as we take care of all the math, stay up to date and compliant with the Australian Tax Office (ATO), Single Touch Payroll (STP), and whatever changes come in from the FWC.

Furthermore, we also make it convenient for employees, with easily accessible payslips and forecasting to help them keep track of their earnings.

Check out the Payroll price plans or try our service during a free 30-day trial to see how Payroll can provide assistance and remove the payroll burden for business owners.

FAQs

Does an employer need to pay the minimum wage?

How do employers pay employees not covered under an award?

Does the minimum wage change based on industry?

What is the difference between a salary and a wage?

Are you entitled to a pay rise every year in Australia?

What is the Fair Work Commission (FWC)?

What is the Fair Work Ombudsman?

Payroll

What is a payroll expense? A guide to payroll expenses

November 5, 2021

Payroll

Tips for Changing Payroll Frequency

March 11, 2024

Looking for something else?

Get QuickBooks

Smart features made for your business. We've got you covered.

See how it works

Help Me Choose

Use our product selector to find the best accounting plan for you.

Choose your product

QuickBooks Support

Get help with QuickBooks. Find articles, video tutorials, and more.

Start learning

A computer screen showing a picture of a computer.

TAKE A NO-COMMITMENT TEST DRIVE

Your free 30-day trial awaits

Our customers save an average of 9 hours per week with QuickBooks invoicing*

No credit card needed

Cancel anytime

Unlimited support

By entering your email, you are agree to our Terms and acknowledge our Privacy Statement.

- - QuickBooks reserves the right to change pricing, features, support and service at any time. Prices are in AUD and include GST. See our Terms of Service for further information.
  - Pricing: All prices are in AUD and include GST.
  - ProAdvisor Program: Please find the terms of our ProAdvisor program here.
  - 75% off for 3 months: For new subscribers, enjoy a 75% off price subscription on QuickBooks Online Simple Start, QuickBooks Online Essentials or QuickBooks Online Plus for the first 3 months of your subscription (Offer). The discount will applied from the date of your enrolment and will continue for 3 months. From month 4, you will be charged the then current monthly retail price for your subscription. See current prices here. QuickBooks Payroll and QuickBooks Time prices are not eligible for any discount and will be invoiced separately according to your usage on a monthly basis during your subscription. Intuit reserves the right to request information to verify the eligibility of a purchaser of the Offer. Acceptance of such verification information is at the reasonable discretion of Intuit, which may revoke the Offer and impose a monthly cost for the subscription at the then current retail prices, at any time if it considers the purchaser is ineligible for the Offer.
  - 50% off for 12 months: For new subscribers, enjoy a 50% discount off the current monthly retail price for QuickBooks Self-Employed, QuickBooks Online Simple Start, QuickBooks Online Essentials or QuickBooks Online Plus for the first 12 months of your subscription (Offer). The discount will applied from the date of your enrolment and will continue for 12 months. From month 13, you will be charged the then current monthly retail price for your subscription. See current prices here. QuickBooks Payroll and QuickBooks Time prices are not eligible for any discount and will be invoiced separately according to your usage on a monthly basis during your subscription. Intuit reserves the right to request information to verify the eligibility of a purchaser of the Offer. Acceptance of such verification information is at the reasonable discretion of Intuit, which may revoke the Offer and impose a monthly cost for the subscription at the then current retail prices, at any time if it considers the purchaser is ineligible for the Offer.
  - 75% off for 3 months (existing subscribers): For existing QuickBooks subscribers who upgrade to QuickBooks Online Essentials, Plus or Advanced, enjoy a 75% discount off the current monthly retail price for 3 months of your subscription (Offer). The discount will be applied from the date you upgrade in-product and will continue for 3 months. From month 4, you will be charged the then current monthly retail price for your subscription. See current prices here. QuickBooks Payroll and QuickBooks Time services and prices are not eligible for any discount and will be invoiced separately according to your usage on a monthly basis during your subscription. Intuit reserves the right to request information to verify the eligibility of a purchaser of the Offer. Acceptance of such verification information is at the reasonable discretion of Intuit, which may revoke the Offer and impose a monthly cost for the subscription at the then current retail prices, at any time if it considers the purchaser is ineligible for the Offer.
  - Free Trial: First thirty (30) days of subscription to QuickBooks Online, QuickBooks Self-Employed and QuickBooks Payroll (including QuickBooks Advanced Payroll), starting from the date of enrolment, is free. During the free trial, you may pay any number of employees using QuickBooks Payroll free of charge. To continue using QuickBooks after your 30-day trial, you'll be asked to present a valid credit card for authorisation and you'll be charged monthly at the then-current fee for the service(s) you've selected.
  - QuickBooks Payroll powered by Employment Hero: Payroll services are offered by a third party, Employment Hero. QuickBooks Payroll is only accessible via QuickBooks Online subscriptions. You will be charged $6.00 (incl. GST) per month for each ‘active employee’ paid using QuickBooks Payroll. An ‘active employee’ is one who has been paid at least once in the billing month. For Advanced Payroll, there is an additional monthly subscription fee of $10 (incl GST). Pricing, terms and conditions, including service options, are subject to change.
  * Employment Hero was voted the leading payroll solution for SMBs <50 employees (Australian Payroll Association 2021 Payroll Benchmarking Study)
  - Customer support: Call or chat to an expert for QuickBooks Online Accountant, QuickBooks Simple Start, Essential, Plus, and Advanced or use in-product QB Assistant and chat for QuickBooks Self-Employed. You'll also find useful resources in the QuickBooks Community.
  - Compatible Devices: QuickBooks Online, QuickBooks Self-Employed and QuickBooks Payroll require a computer with Internet Explorer 10, Firefox, Chrome, or Safari 6 and an Internet connection (a high-speed connection is recommended). The QuickBooks Online mobile app works with iPhone, iPad, and Android phones and tablets. QuickBooks Online and QuickBooks Payroll are accessible on mobile browsers on iOS, Android, and Blackberry mobile devices. Devices sold separately; data plan required. QuickBooks Payroll cannot be used on the mobile apps. Not all features are available on the mobile apps and mobile browser. QuickBooks Online mobile access is included with your QuickBooks Online subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration required.
  - Get paid faster: Get paid 2.5x faster invoicing with PayPal
  * PayPal and QuickBooks customers get paid on average in less than 5 days, which is over 7 days faster than the average for invoices that get paid with other payment methods. Data is for paid invoices that were created in QuickBooks in Australia between 23.05.22 and 23.11.22
  - Tax deductions: Tax deductions not guaranteed due to being subject to user data entry errors. Mileage calculation provided by the Australia Taxation Office - 85 cents per kilometre for the 2023-2024 income year. To a maximum of 5,000 business kilometres per car (Deductions are only applicable to cars)
  - Customer Service Awards: Excellence in Customer Service Award at the CX Australia Awards 2022
  - Multiple file discount: Multiple file discount applies to QuickBooks Australia customers only and valid when signing up for more than one QuickBooks Online subscription in one order. Further terms and conditions available here. Not applicable to QuickBooks Self Employed.
  - Reviews: GetApp, Capterra, Google Play Store, Apple App Store reviews as at date 08/01/24.
  - Cost per day claim (annual): Based on a QuickBooks Simple Start plan at its regular retail price of $313 per year and a 365 day year.
  - Annual Billing: You may pay for your QuickBooks Online subscription on an annual, upfront basis to enjoy a discount on the current fees. If you use QuickBooks Payroll powered by Employment Hero, your payroll costs will still be charged monthly to your nominated payment method in accordance with your usage as set out here. If you cancel your QuickBooks Online subscription within the pre-paid 12 month period, you will not be eligible for a refund, but will retain full access to your QuickBooks Online subscription for the remainder of the 12-month period. Unless cancelled by you prior, your annual subscription will auto-renew on the 12 month anniversary of your sign-up date using the billing details you have given us. Discounts, prices, terms and conditions are subject to change.
  - Over 7 million customers: Based on number of global QB customers (ecosystem) (7.1m) worldwide as of October 2022.
  - Free Onboarding: Applicable to Buy Now subscriptions on QuickBooks Simple Start, Essentials and Plus plans. Not available for QuickBooks Self-Employed.
  - Save Hours: Save up to an average of 29 hours per month with QuickBooks.
  - * Based on a survey conducted by Intuit Australia Pty Ltd in September 2022. Time saving is in comparison to previous accounting method, based on 184 responses from customers that saw time savings.
  - Get access to QuickBooks Tax: ***Access QuickBooks Tax, powered by LodgeiT, by becoming a member of the QuickBooks ProAdvisor Program (it’s free to join). Find out more about the ProAdvisor Program here, including the terms of the QuickBooks Tax offer in the Program here.
  - QuickBooks Time Disclaimers & Offers for Australia: For Important pricing offers and disclaimers with further information, please see here.
  - *Full terms and conditions for access to QuickBooks Tax, powered by LodgeiT as part of the the Proadvisor Program can be found here. QuickBooks reserves the right to change pricing, features, support and service at any time.
  - **Intuit conducted a study involving 56 interviews with accountants and bookkeepers who used Books Review for BAS preparation between March to December 2021 and found that when using Books Review, participants reduced the time spent preparing their clients BAS Reports by around 40%.
  - Our Terms of Service apply to all QuickBooks Online subscriptions. Please review them carefully.

Intuit helps put more money in consumers’ and small businesses’ pockets, saving them time by eliminating work, and ensuring they have confidence in every financial decision they make.

Your Guide to the National Minimum Wage Increase

National Minimum Wage increase

Award minimum wage increase

Grow Your Business with QuickBooks

What else will change for business owners?

Keep Up to Date With QuickBooks

FAQs

Related Articles

Looking for something else?

Get QuickBooks

Help Me Choose

QuickBooks Support

Your free 30-day trial awaits