New financial year ushers in important changes for workers
Usually at this time of year, with the end of the financial year looming on June 30, we remind members that their IEU membership is tax-deductible, and you should include it in your claims on your tax form.
A few minutes spent wisely on your tax now can save a lot of boring hassle later.
Also tax deductible are contributions to charities such as APHEDA, the Australian union movement's global justice organisation, which strives for the achievement of dignity at work, social justice, economic equality, and the realisation of human rights in our region and around the world. The end of the financial year is the perfect time to donate to a worthy cause.
Once your warm inner glow is achieved, make sure you know what other items you can claim as a tax deduction. A great place to start is the ATO’s advice for Education Professionals on income and work-related deductions, a (relatively) simple guide to the common deductions available to education workers.
Well, looks like we ticked the tax reminder box!
But this year, there are other reasons why the end of the financial year is significant.
On July 1, a raft of changes affecting Australian workers come into effect.
The new financial year is ushering some overdue industrial improvements for workers.
Workplace laws (Closing Loopholes 2)
Under the latest tranche of Closing Loopholes legislation, workplace delegates (Reps) have the right to communicate with members and potential members in their workplace, to represent their colleagues, and to access paid leave for training related to their role. The new provisions at long last acknowledge the essential role played by elected union Reps and will benefit all union members.
The new criminal offence for industrial manslaughter is enacted.
Casual conversion to permanent employment will focus on "employee choice" rather than the current regime where the predominant onus is on the employer to offer conversion to permanent employment to qualifying employees.
Tax cuts
A worker on average annual earnings of $72,753 will get a $1,498 tax cut. That’s an extra $28 in their pocket each week.
(This is a huge difference from the Coalition’s original tax plan, which gave the biggest benefits to the top 10% of earners).
IEU Federal Secretary Brad Hayes says on 1 July sees the commencement of much needed financial support from the federal government for all workers for tens of thousands of IEU members across the country.
“While the average tax cut for all employees will be around $1900, teachers, early childhood education and school support staff will be some of the main beneficiaries of the federal government’s ‘stage 3 tax cuts’ that apply from Monday.
“Early career teachers are set to receive a tax cut of up to $1700 per year. Experienced classroom teachers at the top of the scale will recoup around $2700.
“The ACTU’s Cost-of-Living Calculator shows the tax bonus each member will receive.”
Superannuation
the Superannuation Guarantee rate, which determines how much an employer must contribute to employee super funds, increases from 11% to 11.5% on 1 July 2024
the limit on contributions to (before-tax) super increases from $27,500 to $30,000
from the 2024-25 financial year, the non-concessional (after-tax) super contributions cap will also increase to $120,000.
These incremental increase will go a huge way in helping workers retire with thousands more, and enjoy a dignified, secure retirement.
National Minimum Wage increase
From 1 July 2024, the National Minimum Wage will increase by 3.75%.
The new National Minimum Wage will be $915.90 per week or $24.10 per hour.
The new National Minimum Wage will apply from the first full pay period on or after 1 July 2024. This means if your weekly pay period starts on Wednesday, the new rates will apply from Wednesday 3 July 2024.
The National Minimum Wage applies to employees who aren’t covered by an award or registered agreement.
“For workers without an agreement, award rates and the minimum wage will also increase on 1 July following the successful campaign by Australian unions earlier this year,” says Brad Hayes.
“The operative dates for annual wage increases vary across collective agreements for IEU members in different states and territories; however, thousands of members will also receive a wage increase on the same day as the stage 3 tax cuts on 1 July.
“Pay rises don't just happen. These increases are the direct result of member action and another example of the real difference your union membership provides.”
Ban on the use, supply and manufacture of engineered stone in Australia
The ban will start on 1 July 2024 and will apply to engineered stone benchtops, slabs and panels.
The decision is based on the recommendation of Safe Work Australia, the agency that develops national policies intended to improve occupational health and safety in the country. The ban is intended to address rising rates of silicosis and silica-related diseases among workers.
“When engineered stone is processed, the dust generated has different physical and chemical properties that likely contribute to more rapid and severe disease,” the Australian government’s decision stated. “There is no scientific evidence for a safe threshold of crystalline silica content in engineered stone, or that lower silica content engineered stone is safer to work with.”
While most of us will keep the end of year/New Year celebrations confined to 31 December 31, there is an argument that 1 July will bring more important changes to how we live and work.
Paid Parental leave improvements
Thanks to a campaign run by union members, Australia’s PPL scheme is improving! The key changes from 1 July are:
An increase in leave from 20 weeks to 22 weeks (this will rise again to 24 weeks on 1 July 2025 and then to 26 weeks on 1 July 2026).
An increase in the rate of pay (this is tied to the National Minimum Wage, which is increasing to $915.90 per week).
Energy costs
The Albanese government’s Budget includes a $300 energy bill relief payment to every Australian household. The rebate will be applied as four $75 quarterly credits from July 1, across the next financial year.