There are a number of workplace changes which come into effect
on Monday 1 July 2013. Businesses should be aware of these changes
and review current practices, policies and procedures to ensure
that they are compliant.
From 1 July 2013, the superannuation guarantee levy (SGL) will
increase by 0.25% to 9.25%.
If an employee receives a salary/wages plus
superannuation, then the employer will need to increase
contributions by 0.25%. However, if an employee's contract
specifies a fixed sum inclusive of wages and superannuation, then
the total package remains the same and the ratio of wages to
superannuation is adjusted and a higher superannuation contribution
made. You will need to check the specific terms of your employment
contracts or agreements to see whether the increase can be absorbed
or is an additional payment.
Under the current scheme, the SGL is set to increase by a
further 0.25% in 2014, followed by five consecutive 0.5% rises
between 2015 and 2019, reaching 12% in 2019.
However, in his budget reply speech in May this year, Opposition
Leader Tony Abbott promised to push the timetable back two years if
elected in September. So, if there is a change of government this
year, this timetable may well change.
On 3 June 2013, the Fair Work Commission minimum wage panel
delivered a 2.6% increase to all modern award rates from 1 July
As a result of the increase, the national weekly minimum wage
increases by AUD15.80 to AUD622.20 (or 41c to AUD16.37 an hour) on
1 July 2013.
If your employees are covered by an award, you need to be aware
of, and apply, the 2.6% increase. If your employees are covered by
an award but are paid an over-award salary, now is a good time to
do some calculations and ensure your employees are receiving
adequate compensation in light of the award rate increase.
Unfair Dismissal Remuneration Cap
On 1 July 2013 the high-income threshold for unfair dismissal
applications will increase from AUD123,300 to AUD129,300. As the
maximum compensation for unfair dismissals is half the amount of
the high-income threshold, the maximum compensation will rise from
AUD61,650 to AUD64,650 for dismissals that occur after 1 July
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.
K&L Gates has been awarded a 2012 EOWA Employer of Choice
for Women citation acknowledging our commitment to workplace
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Long experience representing many of Australia's leading employers has taught us that in employment litigation the identity of an employee's representative is a major factor in how employee litigation runs.
Australian employees receive certain entitlements (such as annual leave and superannuation) where contractors do not.
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