Littler Global Guide - Australia - Q2 2023

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q2 2023 Global Guide Quarterly updates   Download full Q2 2023 Global Guide Quarterly

Paid Parental Leave Amendment

New Legislation Enacted

Authors: Naomi Seddon, Shareholder, and Xi (Grace) Yang, Of Counsel – Littler

Australia has amended its Paid Parental Leave law in order to make the leave more accessible, flexible, and gender neutral. Effective July 1, 2023, employees will be able to combine the 18 weeks of paid parental leave to which they are entitled with the two weeks available for Dad and Partner Pay. Parents who are single at the time of their claim can access the full 20 weeks. Partnered employees can claim a maximum of 20 weeks’ pay between them, with two weeks per claimant reserved on a “use it or lose it” basis. In addition, under the amended law, the primary claimant of parental leave pay is not required to be the birth parent. This will allow families to decide who will claim first and how they will share the entitlement.

New Reporting Requirements to Close Gender Pay Gap

New Legislation Enacted

Authors: Naomi Seddon, Shareholder, and Xi (Grace) Yang, Of Counsel – Littler

The Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Act 2023 amended the Workplace Gender Equality Act 2012, aiming to accelerate workplace gender equality in Australia. The reform covers organizations that are required to report annually to the Workplace Gender Equality Agency (WGEA), including private sector employers with 100 or more employees. The amendment requires WGEA to publish employer gender pay gaps. In addition, the amendment includes significant changes to employer reporting obligations.

Under the amended law, employers must collect more detailed information such as an employee’s age (year of birth), primary workplace location, and CEO, head of business and casual manager remuneration. Additionally, employers must provide data on prevention and response to harassment on the grounds of sex or discrimination in the workplace.

Increase to Minimum Award Wages, Effective July 1, 2023

New Order or Decree

Authors: Naomi Seddon, Shareholder, and Xi (Grace) Yang, Of Counsel – Littler

The Fair Work Commission has announced that the minimum award wages will increase by 5.75% effective July 1, 2023. With respect to The National Minimum Wage rate for employees not covered by an award or registered agreement will also be increased by 5.75%. The new National Minimum Wage will be $882.80 per week or $23.23 per hour. The increase will apply from the first full pay period starting on or after July 1, 2023.

Increase in Minimum Required Pay for Work Visa Holders to $70,000

New Order or Decree

Authors: Naomi Seddon, Shareholder, and Xi (Grace) Yang, Of Counsel – Littler

Effective July 1, 2023, the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $53,900 to $70,000. New nomination applications will need to meet the new TSMIT of $70,000 or the annual market salary rate, whichever is higher. This increase will not affect existing visa holders and nominations lodged before this date.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.