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Employment Law: What’s changing from 1 July 2015?


As another new financial year brings in more important changes and new rates apply from 1 July 2015. A snapshot of these changes is set out below.  
   

Written by

Martin Dunne


David Thompson

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1.

MINIMUM WAGE INCREASES

$656.90 / week | $17.29 / hr

The National Weekly Minimum Wage that applies to employees not covered by an award or enterprise agreement (“award/agreement free employees”) has increased from $640.90 /week or $16.87 /hour.

All modern award minimum wage rates have increased by 2.5% (rounded to the nearest 10 cents).

2.

SUPERANNUATION CONTRIBUTION

$50,810 / quarter | $203,240 / annum

The maximum superannuation contribution base has increased from $49,430/quarter or $197,720/annum.

An employer is not required to make superannuation contributions on behalf of employees on earnings in excess of that maximum contribution base.

The superannuation guarantee contribution rate remains at the rate 9.5%.

3.

TAXATION OF EMPLOYMENT TERMINATION PAYMENT (ETP)

Base limit of $9,780 and $4,891 for each completed year of service

The tax-free component for bonafide redundancy ETPs has increased from a base limit of $9,514 and $4,758 for each completed year of service.

ETP CAP - $195,000

The ETP cap has increased from $185,000. Amounts over this cap are not subject to concessional tax treatment and are taxed at the highest marginal tax rate.

4.

NEW HIGH INCOME THRESHOLD

$136,700 / annum

The High Income Threshold has increased from $133,000 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.

UNFAIR DISMISSAL - $68,350 or 26 weeks’ pay

The maximum compensation available for unfair dismissal claims has increased from the lower of $66,500 or 26 weeks’ pay.

5.

FILING FEE INCREASES

$68.60 per application

The filing fees for unfair dismissal and general protections applications have each increased from $67.20.

 

NATIONAL EMPLOYMENT CONTACTS

NSW
Shawn Skyring
Martin Dunne

VIC
David Thompson

SA
Emily Slaytor

WA
Darren Miller

TAS
Antony Logan
Sarah Sealy (maternity leave)
Stephanie Manning

NT
Chris Osborne

Disclaimer: The information contained in this 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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