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What's changing from 1 July 2014?


by David Thompson and Martin Dunne 

           

As another new financial year rings in more important changes and new rates apply from 1 July 2014.  A snapshot of these changes is set out below.

 

    EFFECT OF CHANGES FROM 1 JULY 2014  

NEW LEVELS FROM
1 JULY 2014

  1. WAGE INCREASES
 
  • The National Weekly Minimum Wage that applies to employees not covered by an award or agreement ("award/agreement free employees") has increased from $622.20 per week or $16.37 per hour
  $640.90 per week or $16.87 per hour
   
  • The casual loading for award/agreement free employees has increased from 24%
  25%
   
  • All modern award minimum wage rates have increased by 3% (rounded to the nearest 10 cents)
  • Modern award transitional provisions cease to apply from the first full pay period on or after 1 July 2014
   
  1. SUPERANNUATION CHANGES
 
  • The superannuation guarantee contribution rate has increased from 9.25% with further incremental annual increases possibly follow
  9.50%
 
  • The maximum superannuation contribution base has increased from $48,040 per quarter or $192,160 per annum
  • An employer is not required to make superannuation contributions on behalf of employees on earnings in excess of that maximum contribution base
  $49,430 per quarter or $197,720 per annum
  1. NEW HIGH INCOME THRESHOLD
 
  • The High Income Threshold has increased from $129,300 per annum
  • Employers must take care when determining whether an employee's earnings are above this threshold because some amounts paid to the employee may not be counted (for example, commissions, bonuses, overtime, reimbursements and compulsory superannuation contributions)
  • Award/agreement free employees' access to the unfair dismissal regime is restricted by the high income threshold.
  • This threshold also affects which employees may be offered a "guarantee of annual earnings" that will result in no modern award applying to those employees for the period of the guarantee
  $133,000 per annum
 
  • The maximum compensation available for unfair dismissal claims has increased from the lower of $64,650 or 26 weeks' pay
  Maximum compensation $66,500 or 26 weeks' pay
  1. TAXATION OF EMPLOYMENT TERMINATION PAYMENT (ETP) CHANGES
 
  • The tax-free component for bona fide redundancy ETPs has increased  from a base limit of $9,246 and  $4,624 for each completed year of service
  Base limit of $9,514 and $4,758 for each completed year of service
 
  • The ETP cap has increased from $180,000. Amounts over this cap are not subject to concessional tax treatment and are taxed at the highest marginal tax rate
  $185,000
  1. FEE INCREASES
 
  • The filing fees for unfair dismissal and general protections applications have each increased from $65.50
  $67.20 per application

Contacts

SYDNEY
Martin Dunne
Shawn Skyring

MELBOURNE
David Thompson


ADELAIDE
John Connelly 

PERTH
Darren Miller

HOBART
Sarah Sealy

DARWIN
Chris Osborne


Disclaimer: The information contained in this e-alert/update is not advice and should not be relied upon as legal advice. Hunt & Hunt recommends that if you have a matter that is legal, or has legal implications, you consult with your legal adviser.

  

 

 

 

 

 

 

 
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