Union wins coming into effect from 1 July

The new financial year isn’t just about boring taxes, budgets, and ‘fiscal reports’ for economy boffins.

For workers, it’s about higher wages, better conditions and stronger super! Won by union members, of course.

Here’s what is changing and how you can make sure you’re getting what you’re entitled to.

3.5% boost to the minimum wage and award wages

The National Minimum Wage is the minimum hourly rate you can be paid for the work you do, regardless of your job or industry. Union members fought hard to set this minimum standard and continue to stand up to big business and fight for a decent increase to it every year.

This year, we won an increase of 3.5%, bringing the new minimum wage to $24.95 (before tax) from 1 July – that’s a weekly pay boost of $32, or $1,666 each year, if you’re working full-time.

Nearly three million workers rely on the minimum wage and award wages, and the effects of the rise often flow onto the millions of workers who are on agreements as well.

The increase applies from the first full pay period starting on or after 1 July, so keep an eye on those pay slips to make sure you’re getting what you’re owed.

Super contributions increase to 12%

Did you know that it is the union movement that’s behind our modern superannuation system? Members fought hard years ago so that every Australian can look forward to a dignified retirement at the end of their working life.

A big part of how we achieve that is through the Super Guarantee, which is the minimum amount of superannuation that employers must contribute to workers’ super fund accounts.

From 1 July, that percentage is 12% of your wages. This applies for all types of workers (permanent or casual), regardless of how much you earn, however; workers aged under 18 need to work 30 hours or more per week before receiving the Super Guarantee.

Your super has to be paid by your employer into your nominated account at least every three months. (But that’s changing on 1 July next year, so that it must be paid at the same time you are paid your wages. This is another union-win that will make it easier to recognise if super is not being paid as it should – and stop it from becoming a bigger case of super theft.)

The details of employer’s contributions must be included on payslips – so once again, make sure you see the increase reflected on yours!

Paid Parental Leave boost to 24 weeks plus new super

The goal of Paid Parental Leave (PPL) is to provide new parents with a period of time away from work to care for their new child.

Thanks to a hard-fought campaign run by union members, Australia’s PPL scheme has seen some big improvements in the last few years, and there’s more to come.

From 1 July, the scheme offers up to 24 weeks of paid leave  for workers (and will increase again to 26 week from 1 July next year). The leave is paid at the minimum wage (see above).

Also from 1 July, workers on on paid parental leave will receive 12% superannuation! This will work a little differently to normal superannuation contributions (see above) because it will be paid by the the Federal Government, rather than employers. Employers are not required to make super contributions during this time but some agreements, workplace policies or employment contracts may provide these benefits.

Union members earn more – and membership fees are tax deductible

Guess what: union members earn $251 more per week than non-members, according to the ABS.

You can join your union at any time, of course. But if you join your union today, you’ll have a whole year of membership fees to claim as a tax deduction come July next year.

There’s nothing boring about that!