New year, new obligations – important reminders for labour hire providers

4 July 2024
New year, new obligations – important reminders for labour hire providers

The start of any new financial year is an opportunity for labour hire providers to ensure they are up to date with their licence details and legal obligations.

The start of 2024-25 also brings changes to tax, super, minimum and award wages, and workplace legislation – providers should confirm they understand and are compliant with the relevant details.

BPAY available for payments to LHA

With the new financial year comes a new payment option – you can now use BPAY® to pay labour hire licence fees. This option has been introduced following feedback from labour hire providers, and reflects LHA’s commitment to making compliance with obligations easier for businesses.

BPAY can be used to pay your:

  • licence application fee
  • annual licence fee
  • renewal application fee.

When making a payment through the LHLO Portal, you can choose to pay an invoice either via BPAY, from a bank account or credit card, or directly via credit card. Please note that EFT is no longer a payment option.

Keep licence details up to date

By keeping their licence details up to date, providers lower the risk of missing critical LHA notices. It is also a requirement under the Labour Hire Licensing Act 2018 (Vic) to notify LHA of certain changes; significant penalties can apply for non-compliance.

Check your business and contact details on the Labour Hire Licensing Online (LHLO) Portal and ensure the name and contact details for your nominated officer are correct. There is guidance available to help you update your nominated officer.

Reminders for nominated officers

It is important that nominated officers fulfil their obligations, including to:

  • notify LHA within 30 days if any relevant person (such as a director or senior manager) is no longer a fit and proper person under section 22 of the Act
  • notify LHA within 30 days if any relevant person is no longer compliant with legal obligations as required by section 23 of the Act
  • add or remove a relevant person via the LHLO Portal, particularly if this arises from changes to officeholders of a corporate entity
  • submit annual reporting as required by section 34 of the Act
  • pay the annual licence fee as required by section 35 of the Act.

Failure to fulfil these obligations may result in LHA compliance or enforcement action, including licence cancellation and prosecution.

Nominated officers should regularly check the LHLO Portal account for notices from LHA, and respond within any specified timeframes.

If you need assistance making updates to your business details, contact the LHA Enquiries team on 1300 545 200 or at enquiries@labourhireauthority.vic.gov.au.

National Minimum Wage and award minimum wage increases

From 1 July 2024, the National Minimum Wage has increased by 3.75 per cent and is now $915.90 per week or $24.10 per hour. Minimum award wages have also increased by 3.75 per cent.

The increase applies from the first full pay period on or after 1 July 2024. This means if a weekly pay period starts on Wednesday, the new rates will apply from Wednesday 3 July 2024.

Most employees are covered by an award. The National Minimum Wage applies to employees who aren’t covered by an award or registered agreement.

According to the Fair Work Commission in its Annual Wage Review, almost 80 per cent of workers in Australia are paid above their award; less than one per cent receive only the national minimum wage.

The Australian Taxation Office (ATO) has highlighted a number of key dates in July to be aware of:

  • From 1 July 2024, tax tables for employees have changed. Check your payroll software is up to date and applying the new withholding rates, and use the tax withheld calculator to work out how much you need to withhold from your employees’ payments.
  • From 1 July, the superannuation guarantee rate has increased to 11.5 per cent.
  • By 14 July, STP finalisation declarations are due.
  • By 28 July, super guarantee contributions are due to your eligible workers’ super funds.

The ATO has information available to help you understand your obligations when engaging a worker.

Changes to the Fair Work Act coming into effect in July and August

Labour hire providers and hosts should be aware of upcoming changes to the Fair Work Act 2009 (Cth) to ensure they continue to meet their legal obligations.

You can find more information on these changes and others already in force on the Fair Work Ombudsman (FWO) website.

From 1 July 2024, a registered organisation (such as a union) is now able to get an exemption certificate from the Fair Work Commission to waive the 24 hours’ notice requirement for entry to investigate suspected underpayments.

Upcoming changes from 26 August 2024 to the Fair Work Act include:

  • a new framework for protecting the interests of certain workers in the gig economy
  • the replacement of the existing definition of ‘casual employment’ in the Fair Work Act with a new definition that says that an employee is a ‘casual’ only if: 
    • there isn’t a firm advance commitment to continuing and indefinite work, factoring in the real substance, practical reality and true nature of the employment relationship
    • the employee is entitled to be paid a casual loading or a specific pay rate for casuals.

From 26 August 2024 for non-small business employers, and from 26 August 2025 for small business employers, eligible employees will be given a new ‘right to disconnect’ outside of work hours.

From 26 August 2024 or an earlier date set by the Australian Government:

  • new definitions of ‘employee’ and ‘employer’ will be added into the Fair Work Act
  • the Fair Work Commission will be able to deal with disputes about unfair terms in a contract that an independent contractor is a party to (known as a services contract).