Wage Reviews
The Fair Work Commission’s annual wage review has resulted in two announcements made this month:
- The National Minimum Wage will increase by $40 per week, (an increase of 5.2%) from 1 July 2022
- award minimum wages will increase by 4.6%, which is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for a full-time employee.
You may have been paying over award wages previously, but as the wages increase every year, you will be surprised how quickly it catches up – and you don’t want to be paying under the award.
Costs are increasing
In July 2022, the superannuation guarantee statutory rate will rise 0.5 per cent to 10.5%. And the $450 threshold will be removed.
In addition to the rising cost of labour, inflation is forecast to put upward pressure on everyday items. That will likely increase your general running costs and the price of materials. Petrol prices are up, for instance, and supply chain issues have driven up the cost of many imported products.
Time to review your pricing
Now is a good time to consider: Is it time to put your prices up? Ideally, your business should increase costs by a tiny amount each year, rather than by a big jump every five years, for instance. Small increases help prevent price shocks for customers, and keep your business in line with the rest of the market.
Can you also cut costs?
If you don’t think increasing your prices is an option, or you still need to make more of a change, you may need to cut back your spending. We look at your business line by line, so we can help you identify areas where you might be able to trim the fat.
Give us a call or drop us a note – we’re here to help.
This post was originally written by BOMA and has been updated to make it more personal.
