Editors Note: This is a guest post written by Robert Larizza – Director at HR Connections. His opinions are his own.
It’s that time of the year again where all business owners and employers need to make sure they are all up to date with the latest rates and threshold increases in the Fair Work Act and related legislation.
This information highlights some of the main changes that came into effect from the 1st of July, 2013.
The national minimum wage for non-award employees (or those who are not covered by an enterprise agreement) has increased to $622.20 a week (based on 38 ordinary hours worked), or $16.37 an hour;
Casuals covered by the national minimum wage have had their loadings increased to 24%;
Minimum wage rates in Modern Awards have increased by 2.6%. All the Modern Awards have now been amended to reflect the new rates;
There are also national minimum wage increases for Apprentices, Juniors and Trainees – make sure you check you are paying the correct rates;
Many Allowances have also increased. Please make sure you check your relevant Modern Award.
The cap to access the unfair dismissal jurisdiction for non-award covered employees (“High Income threshold”), is now $129,300 a year excluding superannuation, some bonuses or commissions (ie: amounts that cannot be determined in advance);
The compensation cap on damages for unfair dismissal has increased to $64,640.
Eligible employees aged 18 or older and paid $450 or more (before tax) in a month are entitled to superannuation guarantee contributions. This applies whether they are full time, part time or casual or whether they are a temporary resident of Australia;
The minimum superannuation guarantee rate has increased from 9% to 9.25%. As you may be aware, there are further increases planned to 12% by 2019.
There is no longer a superannuation guarantee upper age limit. Therefore you will be required to make superannuation guarantee payments for all eligible employees over the age of 70.
For bona fide redundancies, the proposed tax-free component for employment termination payments has increased to $9,246 for the first year and $4,624 for each completed year of service.
This information is intended as guide only. Professional advice should always be sought before applying this information to particular circumstances.
Robert Larizza is a Director with HR Connections. He can provide up to date and responsive HR solutions including:
Policy reviews, design and implementation;
General and Strategic HR Management;
Dispute resolution, Mediation, Investigations and managing Performance issues;