The new financial year starts on July 1 and it will signal several important changes for employers. HC looks at what you should prepare for.
Are you ready for the start of the new financial year?
July 1 traditionally brings in changes to work-related payments and this year is no exception.
Here are the differences you need to be prepared for.
Minimum wage increase
The national minimum wage increase comes into effect, putting the new rate at $640.90 per week or $16.87 per hour.
Minimum wage rates in modern awards will also increase by three per cent from the first full pay period commencing on or after July 1.
High income threshold
The high income threshold for unfair dismissal eligibility will increase to $133,000 per year. Earnings that count towards the threshold include wages, the agreed monetary value of non-monetary benefits, such as extra superannuation and amounts dealt with on the employee’s behalf, like a salary sacrifice arrangement.
Earnings that don’t count towards the threshold include amounts which cannot be determined in advance, such as a bonus, and allowances paid to employees that are not used for work-related expenses.
Superannuation guarantee
Employers must pay 9.5%, up from 9.25%, of their employees’ ordinary time earnings into a complying superannuation fund or retirement savings account from July 1.
That covers employees aged 18 and over and includes part-time and casual workers.
Transitional provisions in modern awards
The four-year process of changing monetary entitlements under modern awards will be completed on July 1 and minimum wages, loadings and penalties should be taken from the relevant modern award.
July 1 traditionally brings in changes to work-related payments and this year is no exception.
Here are the differences you need to be prepared for.
Minimum wage increase
The national minimum wage increase comes into effect, putting the new rate at $640.90 per week or $16.87 per hour.
Minimum wage rates in modern awards will also increase by three per cent from the first full pay period commencing on or after July 1.
High income threshold
The high income threshold for unfair dismissal eligibility will increase to $133,000 per year. Earnings that count towards the threshold include wages, the agreed monetary value of non-monetary benefits, such as extra superannuation and amounts dealt with on the employee’s behalf, like a salary sacrifice arrangement.
Earnings that don’t count towards the threshold include amounts which cannot be determined in advance, such as a bonus, and allowances paid to employees that are not used for work-related expenses.
Superannuation guarantee
Employers must pay 9.5%, up from 9.25%, of their employees’ ordinary time earnings into a complying superannuation fund or retirement savings account from July 1.
That covers employees aged 18 and over and includes part-time and casual workers.
Transitional provisions in modern awards
The four-year process of changing monetary entitlements under modern awards will be completed on July 1 and minimum wages, loadings and penalties should be taken from the relevant modern award.
