Legal Changes in Australia from 1 July 2024: What Businesses Need to Know
As of 1 July 2024, a number of significant legal changes have come into effect in Australia, impacting various aspects of business operations. As experts in business and commercial law, specialising in franchising, we provide an overview of some of these changes, their implications, and actionable advice for businesses to ensure compliance and leverage new opportunities.
1. National Minimum Wage Increase
From 1 July 2024, the National Minimum Wage has increased by 3.75%. This means the new National Minimum Wage is $24.10 per hour, or $915.90 per week.
Implications for Businesses:
Employers must update their payroll systems to reflect the new wage rates.
Communication with employees about the wage increase is essential to ensure transparency and compliance.
Businesses should budget for the increased labour costs associated with the higher minimum wage.
2. Engineered Stone Ban
A ban on the manufacture, supply, processing, and installation of engineered stone benchtops, panels, and slabs will be implemented in Australia from 1 July 2024. This is due to the danger that engineered stone dust poses to workers.
Implications for Businesses:
Companies involved in the manufacture, supply, or installation of engineered stone products must cease these activities and comply with the new regulations.
Businesses should check specific transitional arrangements in their states or territories and adjust operations accordingly.
Workers and employers must be informed and trained on the new regulations to ensure safety and compliance.
3. Superannuation Guarantee Rate Increase
From 1 July 2024, the Superannuation Guarantee (SG) rate has increased from 11% to 11.5%. This change is part of the gradual increase towards the 12% target set by the government.
Implications for Businesses:
Employers must adjust their payroll systems to account for the increased SG rate.
Businesses should communicate the changes to employees to ensure transparency and understanding of their superannuation benefits.
Budget planning should consider the increased costs associated with the higher SG rate.
4. Fair Work Act Amendments
The Fair Work Act has undergone several amendments aimed at enhancing employee rights and improving workplace relations.
Key Changes:
Casual Employment Clarification: New definitions and entitlements for casual employees have been introduced, including the right to request conversion to permanent employment after 12 months of regular patterns of work.
Right to Disconnect: Eligible employees now have the right to refuse employer or third-party contact outside of working hours, effective 26 August 2024 for non-small business employers and 26 August 2025 for small business employers.
Independent Contractor Changes: New definitions and protections for independent contractors have been introduced, including the ability to apply to the Fair Work Commission if they believe their contract contains unfair terms.
Implications for Businesses:
Employers should review and update employment contracts and policies to reflect new definitions and entitlements for casual employees.
Implement policies and procedures to ensure compliance with the right to disconnect regulations.
Review contractor agreements now to ensure compliance with new protections and definitions.
You may also want to consider reviewing or if you don’t have one, getting an Employment Handbook in place.
5. Environmentally Sustainable Procurement Policy
The Australian Government’s new Environmentally Sustainable Procurement Policy will take effect from 1 July 2024. Businesses supplying goods or services to the government must undertake activities to substantiate environmental claims and demonstrate compliance with the policy.
Even if you don’t supply to the Government, it is a good practice to review your policies and processes here to ensure that any potential representations around these issues, whether made in any operational, legal and/or marketing materials, are not only true and correct but can be easily proven if needed to avoid breach of contract and/or misleading and deceptive claims.
Implications for Businesses:
Suppliers to the government must review and update their procurement processes to align with the new policy.
All businesses should develop and implement strategies to check what representations are being made and then ensure they are able to substantiate claims and ensure compliance with applicable laws and the claims.
Ongoing monitoring and reporting on sustainability practices will be essential to maintain compliance.
6. Business Name and Company Registration Fees
In line with an increase in the Consumer Price Index (CPI) for the March quarter, the Australian Securities and Investment Commission (ASIC) will increase company fees and business name fees from 1 July 2024.
Implications for Businesses:
Companies should budget for the increased costs associated with business name and company registration fees.
It is advisable to review and update any necessary registrations ahead of time to avoid higher fees.
7. Privacy Act Reforms
While this is not technically a 1 July matter, the Attorney General announced plans earlier this year to introduce in a few months legislation to bring around reforms to strengthen data protection and privacy rights for individuals. There already being big consequences and penalties if you don’t meet the existing privacy law requirements.
Contemplated Changes Include:
Clearer Privacy Notices
Increased disclosures and rights to individuals
New tests for the handling of personal information:
Increased requirement for assessments for certain higher-risk activities
Introduction of further laws for privacy invasions and the ability for individuals to take legal action and seek remedies
Implications for Businesses:
Companies must review and update their data protection policies and procedures to comply with existing laws and get ready for the new changes
Training programs should be implemented to educate employees on the importance of data security and the requirements of the Privacy Act.
Businesses must establish clear processes for managing data breach notifications and responding to consumer requests regarding their personal information.
8. Director Identification Number (DIN) Requirement
While not exactly a new 1 July measure, we have started to see the government take action against those who do not have a Director Identification Number (DIN) – so a timely reminder for all directors of Australian companies, registered foreign companies, and Indigenous corporations to get their DIN now!.
Implications for Businesses:
Existing directors must ensure they have applied for and obtained their DIN by the deadline.
Companies should update their corporate governance practices to include DIN compliance checks for new and existing directors.
Failure to comply with the DIN requirements can result in significant penalties, so businesses must ensure timely adherence to avoid fines.
These legal changes highlight the dynamic nature of Australia’s regulatory environment and the importance of staying informed and compliant. Businesses must take proactive steps to understand and implement these changes to mitigate risks and seize opportunities.
Our team of legal professionals specialises in business and commercial law, and we are dedicated to helping you navigate the complexities of the legal landscape to protect your business, and enable your continued growth and movement toward achieving your business and personal goals. Visit our website or book a free initial Discovery Call for more information.
Please note that this is a general and brief update, it does not purport to be comprehensive legal advice of all information and/or relevant to your circumstances. Consequently, specific legal advice for each of your circumstances should be obtained first before taking or not taking any action with respect to this area.