What You Need to Know for the New Financial Year

5 June 2023

We have now entered June, which means the end of this financial year and start of the new financial year is just around the corner. From 1 July 2023, many changes will come into effect that may impact your organisation.  


In May 2023, the Federal Budget maintained the Super Guarantee’s legislated increase to 12%. This means that from 1 July 2023, the Super Guarantee will increase by 0.5%, from 10.5% to 11%. It will continue to increase by 0.5% on 1 July each year until it reaches 12% in 2025.

Wage Increase

Last Friday, the 2 June 2023, the Fair Work Commission’s Annual Wage Review took place. The purpose of this proceeding is to review the National Minimum Wage and the modern award minimum wages specific to the 121 modern awards each year. This year it was determined that the National Minimum Wage would increase by 5.75% from $21.38 per hour to $23.23 per hour effective from 1 July 2023.

It was also determined that all modern award minimum wages would increase by 5.75%. If you pay as per a modern award, please ensure that you check for the revised pay guides that will be issued by the Fair Work Ombudsman prior to the 1 July 2023.

It is also important to note that a new Fair Work Information Statement will be provided to reflect these increases.

Parental Leave

From 1 July 2023, the current entitlement to 18 weeks paid parental leave pay will be combined with the current Dad and Partner Pay entitlement of 2 weeks’ pay. This means that partnered couples will be able to claim up to 20 weeks paid parental leave between them. Parents who are single at the time of their claim can access the full 20 weeks.

These changes affect employees whose baby is born or placed in their care on or after 1 July 2023.

Other changes include:

  • introducing a $350,000 family income limit (indexed annually from 1 July 2024) for claiming paid parental leave pay.
  • expanding the eligibility rules for fathers or partners to claim paid parental leave pay.
  • making the whole payment flexible so that eligible employees can claim it in multiple blocks until the child turns 2.
  • removing the requirement to return to work to be eligible for the entitlement.

If you would like more information on how these changes may impact you or your organisation, please contact us via the link below.