Changes to Payroll 1 July 2017

Fair Work Ombudsman


The Fairwork Commission have announced an increase to the Australian minimum wage effective 1 July 2017 of 3.3%

  • Minimum wage increase will apply to all employees paid under a modern award or registered agreement. Although minimum wage increases, all hourly rates will increase
  • New pay rates will apply to the first FULL PAY PERIOD after July 1
  • Fairwork Commission will release the new pay rates in the coming 2-3 weeks
  • Remember to update your employees’ pay rates into your accounting system

Changes to Penalty rates

Changes to penalty rates will come into affect 1 July 2017. The employees affected are those in the Hospitality, Pharmacy, Fast Food, Retail and Restaurant Industries

  • These changes will be phased in over the next 3 – 4 years
  • Awards and pay rates will be updated by the FWC over the next 2-3 weeks
  • You will need to contact a HR group or Fairwork Australia or gain information from their website on how the changes will affect your employees
  • All employers must comply with the changes
  • Remember to update the pay rates in your accounting software

Updates to tax tables

There have been some changes to the tax rates of individuals. These relate to:
HECS / HELP debt repayment
Medicare Levy
Budget Repair Levy and more

Although legislation hasn’t passed through into policy yet, there are major changes to the HECS/HELP repayment threshholds and amounts announced in the federal budget. If you have employees with a higher education debt, their new take home pay may be affected. Until legislation is enacted, we have no concrete data on this.

If your accounting software is in the cloud (like Xero), your tax tables will be updated automatically and you won’t have to do anything.

For those employees on regular pay amounts you have setup automatically through internet banking, the first full pay period in July may differ from their regular amount. Don’t forget to cancel the regular direct debit and manually enter the pay until you know the new amount