Over the next 12 months we can expect increased pressures on pricing for domestic Australian accounting employees.
At the moment, the Australian Bureau of statistics has the November 2021 Full-time adult average weekly total earnings at just under $2,000, with specific higher demand industries being above average.
The Australian accounting news sources are already reporting large salaries being offered to attract staff ($30,000 above market rate), along with sign on bonuses of up to $30,000, and loyalty bonuses of $30,000 to keep staff.
For those with inhouse employees, there will be a need to pay higher salary rates in line with the Australian 7% inflation rates. Inflation seems a global phenomenon with the US taking the lead with US inflation hits a new 40-year high of 8.6pc.
At the start of the new tax year, 1 July 2022, the Super Guarantee percentage rose up to 10.5% with more annual increases on the horizon. It will increase by 0.5% on the 1st of July each year until it reaches 12% in 2025.
At the same time, indirect costs of running an Australian accounting firm are going to rise on a couple of fronts. Inflation will affect costs of materials, including fuel for transport, and electricity for heating and running businesses. Also, all wages seem set to rise adding to costs of production in all businesses. The minimum wage rate has just taken on a 5.2% increase earlier this week.
So Australian accounting firm owners can expect increases in direct labour costs, along with indirect costs like cost of rent, along with a large range of source services (direct and indirect). This will flow through to increased costs for seasonal events like training seminars, Christmas parties and a whole range of normal events which will cost more.
Odyssey Australian accounting outsourcing always welcomes enquiries on how we might assist with your Australian accounting compliance staffing shortages.