HR Compliance To The New Federal Budget

Budget cutsSome of the initiatives handed down in the budget on last week will affect the way you manage your employees. While the wider implications of the budget will emerge in time, these are some immediate changes.

 

 

 

  • Small Business – loans and compliance assistance
  • Paid Parental Leave – potential changes
  • Young Job Seekers – Increase in job applications
  • Older Workers – employment payment
  • Super Guarantee – increases as from 1 July 2014
  • Jobs – increase in talent

Small Business

There is a $484.2 million program in the budget for entrepreneurs that will provide for loans of up to $20,000 to help commercialise good ideas. And an $8 million allocation over four years has been made to establish a Small Business and Family Enterprise Ombudsman to replace the present Small Business Commissioner. The intention behind that initiative is to improve dispute resolution and provide a more user-friendly way for cutting compliance burdens and red tape for small enterprises.

Paid Parental Leave

With the potential changes to the Paid Parental Leave Scheme, it is a good time for your business to review your current parental leave policy. Approaches can vary across organisations, as some may top up the payment for higher earning employees, others may choose to remove their parental leave payment in light of the government payment and some organisations may continue to offer both their existing policy alongside the government payment.

Young Job Seekers

An increase in job applications from younger workers may come across our desks following the budget. In Treasurer Joe Hockey speech he said that young people must be “earning or learning”. From July 2014, those under 30 must be employed or studying and, if they are not, they will only be able to claim Newstart or Youth Allowance for six months of the year. If not working or studying, they will be required to participate in a Work for the Dole program which aims to help them get into the workforce.

Those studying may have to pay more for university courses with the deregulation of university fees and, while student loans will be uncapped, the interest on debt will now match the government’s borrowing rate, meaning the interest payments will be higher. The thinking is that young Australians, whether they are tertiary educated or not, will be more motivated to participate in the workforce.

Older Workers

Older workers could be staying longer in the workforce with the pension age rising incrementally from 67 to 70 by 2035. There could also be more applications from mature age job seekers seeking to re-enter the workforce stimulated immediately by the scrapping of the seniors’ supplement after the last payment in June this year. Treasurer Joe Hockey has expressed a need for change in the attitude of business towards hiring older workers and we as HR professionals can play a part in advising businesses on the benefits of hiring older workers for an organisations. There’s $10,000 on offer for a business that employs a person over 50 years of age who has been on unemployment benefits for six months or more. The $10,000 will be paid over a 24 month period, and provide an extra incentive to smaller businesses especially to think more seriously about hiring an older candidate when recruiting.

Super Guarantee

The super guarantee will be paused for the next four years. While the rate will increase from 9.25% to 12 per cent as planned, the time frame will change. The rate will increase to 9.5% by 1 July 2014 but will remain there until 30 June 2018.

Jobs

With 16,500 jobs set to disappear from the public sector over the next 3 – 4 years, we may be seeing an increase in the number of job applications from public sector professionals. For those of us in the private sector, it makes sense to get up to speed with the different roles, titles and levels in the public sector, and how they align with private sector roles and structures. That could assist in recognising appropriate talent and skills when assessing applications for short-listing and making appointments.

Nicoles Photo

Nicole Allen B.Mgt, Dip. Mgt, Dip.HR
Managing Director

Nicole Allen is the Founder and Managing Director of Moreton Bay HR Solutions. In 1996, Nicole Allen commenced a successful career in operational and strategic human resources, recruitment, management and communications field. She has held some significant positions ranging from Human Resources Generalist to Group HR Manager in Mining and Resources, Uranium, Oil & Gas, Defense, Heavy Manufacturing, Information Technology, Utilities, Finance and small to large business sectors.

With more than 18 years’ experience in the Human Resources Management and communications field, she brings a diverse and unique HR and communications expertise and knowledge. She is a strong believer in employee communication as being the biggest key to business success and has a consultative approach which has underpinned her successful development of HR programs which improve the culture and behaviour of employees.

Amongst Nicole’s list of Qualifications, she holds a Bachelor of Management majoring in Communications, Diploma in Management and a Diploma in Human Resources.

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