MESSAGE FROM OUR CEO – 24 November 2017

WAGES INCREASE: The Australian November 16, 2017 reported: “The Fair Work Commission ordered a 3.3 per cent increase in minimum wages from July 1, and this was expected to flow rapidly to about 25 per cent of workers on awards. The Reserve Bank estimates it could flow through to as many as 40 per cent of workers.” And, while the report says: “The disappointing 0.5 per cent increase in wages in the September quarter leaves living standards under pressure, with consumers facing hikes in energy, health, education and tax bills.” Nothing is said about the increase will put the already small business sector under more pressure.

ACCOUNTANTS – BE AWARE: Small businesses should be aware of schemes entered into with their accountants to avoid paying employees in accordance with awards or agreements. The Australian November 16, 2017 reported: “The Federal Circuit Court fined Ezy Accounting 123 $53,880 after finding the Victorian firm ­facilitated underpayments by ­client Japanese fast-food operator . . . Ezy Accounting 123 provided payroll services for Blue Impres­sion and processed wages for one of the two underpaid workers ­despite knowing the rates the worker was being paid were below lawful minimums.