As we begin the new financial year, it is important to be aware
of changes and new rates that apply from 1 July 2013. A snapshot of
these changes is set out below.
The national weekly minimum wage that applies to
award/agreement free employees has increased to $622.20 per week
(previously $606.40), or $16.37 per hour (previously $15.96).
The casual loading for award/agreement free employees has
increased to 24%. There is no change to the casual loadings in
All modern award minimum wage rates have increased by 2.6%.
Modern award transitional provisions have moved into the fourth of
five phases for the first full pay period on or after 1 July
Wages in transitional instruments (including Division 2B State
enterprise awards) have increased by 2.6% per week from the first
full pay period on or after 1 July 2013.
The superannuation guarantee contribution rate has increased to
9.25% (previously 9%) with further incremental annual increases to
Superannuation funds must now provide a new type of
superannuation account called "MySuper".
The upper age limit for paying superannuation for eligible
employees has been removed. Employers must make superannuation
contributions on behalf of employees aged 70 years or older.
The maximum superannuation contribution base has increased to
$48,040 per quarter or $192,160 per annum (previously $45,750 per
quarter or $183,000 per annum). An employer is not required to make
superannuation contributions on behalf of employees on earnings in
excess of that maximum contribution base.
The high income threshold has increased to $129,300 per annum
(previously $123,300 per annum). Employers must take care when
determining whether an employee's earnings are above this
threshold because some amounts paid to the employee should not be
counted (for example, commissions, bonuses, overtime,
reimbursements and compulsory superannuation contributions).
This new threshold affects which award/agreement free employees
have access to the unfair dismissal regime, and the maximum
compensation available for unfair dismissal claims, which is now
the lower of $64,650 (previously $61,650) or 26 weeks'
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
Taxation of employment termination payment (ETP) changes
The tax-free component for bona fide redundancy ETPs has
increased to a base limit of $9,246.00 (previously $8,806) and
$4,624.00 (previously $4,404) for each completed year of
The ETP cap has increased to $180,000 (previously $175,000).
Amounts over this cap are not subject to concessional tax treatment
and are taxed at the highest marginal tax rate.
The filing fees for unfair dismissal and general protections
applications have each increased to $65.50 (previously
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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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.
Treasurer Scott Morrison recently announced changes to a number of 2016 Budget superannuation contribution measures.
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