The beginning of the new financial year brings about the start of new budgets, targets and KPIs for a lot of organisations, but it also means the start of some keys changes in the employment space.
Those key changes include:
For organisations that contribute the minimum superannuation payments - you are now obligated to increase the compulsory payments from 9.25% to 9.5% per annum.
If you already pay 9.5% or above – you may be able to absorb the increase in the existing contributions (subject to your employment contract terms).
Minimum Weekly Wage
The minimum weekly wage has risen from $622.20 to $640.90 (or $16.37 per hour to $16.87 per hour) – so if you pay your employees in line with minimum modern award pay rates you need to apply the increase.
Unfair Dismissal High Income Threshold
Employees who earn more than $133,000 (previously $129,300) and who are not covered by a Modern Award of Enterprise Agreement are now no longer eligible to bring an unfair dismissal claim.
Taxation of ETP (Employment Termination Payment)
The tax-free component for bona fide redundancy ETPs has increased from a base of $9,246 and $4,624 per each completed year of service - to $9,514 and $4,758 for each completed year of service.