With the start of the new financial year, there are a number of
employment law related issues to bear in mind, and get in order if
need be, to be well and truly prepared for 2012-13
All award rates increased 2.9% as of 1 July. So if you pay at or
close to award rates, or pay at an annual rate which is not far
above award rates but which is intended to include all obligations,
then it is a good idea to check the rates you pay against the
revised pay rates in the award to make sure you comply, both with
base rate and with the total due including overtime etc.
Unfair dismissal threshold
Indexation increases the salary cap for making an unfair dismissal
claim to $123,300. This is, essentially, base salary excluding
Fair Work Information Statement
Not much new here, but the change in the high income threshold
(also $123,300) means that the number changes in the FWIS, and you
should use the current version – this should be updated at
soon. Remember, you must give a FWIS to every new employee. We have
had our first example of a breach of this rule being added to an
adverse action claim as a non-compliance which could give rise to a
penalty up to $33,000. Of course, such a penalty is pretty unlikely
for a small regulatory breach - but best not give anyone the chance
to have a go at you about it.
Contractors in Construction
Under new rules applying from 1 July, businesses in the building
and construction industry who engage contractors have to report to
the ATO on all payments made to contractors (engaged for work, not
just supplying goods, for example) during the year. The first
compliance date will be after 1 July 2013, but best be making sure
you can easily extract those records to meet the ATO's
requirements. The required information is the contractor's
name, address and ABN, the total amount paid to the contractor over
the income year, GST has been charged; and any other information
the ATO may require.
If you use living-away-from-home allowances as part of salary
packaging, you need to understand the substantial changes to the
rules, announced in the Budget and coming into effect on 1 July as
a result. The tax treatment has changed and eligibility conditions
have been restricted.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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