Tomorrow marks a new financial year and with that businesses and companies are set to face a raft of Labor-Government legislative changes.
Along with inflationary pressures and already higher interest rates on loans, there will be increased minimum wages, wage changes in the aged care, education and agricultural sectors, and an 11 per cent superannuation to factor into costs.
Workers on the minimum wage will receive a boost of nearly six per cent, bringing their hourly pay to above $23.
NDIS-registered home care agency Regal Care’s Director, Jince Mathew, said the increase in the minimum wage would be an incentive for workers already in the industry to stay put, but it would not be a financial attraction point for new employees.
“Home care workers are still on the lowest-paid workers’ list,” he said.
Mr Mathew said international students were crucial to running home care services and that new immigration laws raising the Temporary Skilled Migration Income Threshold (TSMIT) from $53,900 to $70,000 would create difficulties.
“If the working hours are reduced, it will open up job opportunities for more people, but those extra people do not exist and that will add to the already worsening labour shortage,” he said.
“Australians are not that great in fancying a career in the home and aged care industries yet, the way out will be bringing in more international students from India, Nepal, Sri Lanka, etc.”
On top of that, ASX-listed mining and resources companies based in WA are poised to feel the brunt of the State’s rather quickly introduced Aboriginal Heritage Act, which also takes effect tomorrow.
There is already outcry with companies claiming the new measures, introduced in the wake of the Rio Tinto’s (RIO) destruction of the culturally significant Juukan Gorge in the Pilbara three years ago, will stifle future development with extra layers of red tape.
The Government has made multiple last-minute amendments to the Act after dozens of mining companies called for further clarification over the confusing restrictions.
Refusing to back down or budge to any delays of the Act, a one-year reprieve was announced earlier this week, a reprieve for mining exploration, developers and farmers entering the new financial year.
There are changes impacting the cosmetic medicine industry, with new guidelines released by the Australian Health Practitioner Regulation Agency (Ahpra) and the Medical Board of Australia (MBA), placing stronger regulations on health professionals practising cosmetic surgery.
But there’s a breakthrough for ASX-listed companies operating in the psychedelics space, as authorised psychiatrists in Australia will be able to prescribe medicines containing psychedelic substances like psilocybin and MDMA for certain mental health conditions.
Emyria (EMD) Managing Director Dr Michael Winlo said Australia was leading the world in recognising MDMA and psilocybin as medicines in controlled settings.
“The spotlight is upon us,” he said.
“But it’s not just about being first, it’s about doing it right.
“The urgency for innovative mental health treatments is overwhelming.
“Gathering robust clinical data has been the lifeblood of Emyria… Our experience with cannabinoid therapy has prepared us well.
“Our model prioritises wraparound care before, during and after treatment. We are actively part of the effort to take these treatments out of academic and research institutions and into the real world, in real time.”
Emyria is partnered with the Pax Centre to offer an integrated clinical service circumventing the limitations of standalone psychedelic clinics.
What do the EOFY changes mean for investors?
Time will tell how deeply Labor’s legislative changes will impact a host of ASX-listed companies. Whether the benefits for workers will outweigh the costs to companies.
Companies that require many lower-skilled workers for their operations, or are in farming, manufacturing, mining, exploration, aged care and education are likely to feel the financial pinch.
One thing is certain, however, with the rate of inflation down to 5.6 per cent in the year to May, there is less likelihood that they’ll face another interest rate on loans next Tuesday.