Are you an employer? As of 1 July 2018, there are a number of changes you should know about.
Why? Because penalties of up to $126,000 apply for employers who fail to meet their obligations regarding determination of wages and workplace legal compliance.
- Don’t Pay Bare Minimum!
Minimum wages have now increased by 3.5% for full time modern award covered employees. The national minimum wage for an award free employee has increased from $18.29 per hour to $18.93 per hour. Junior employees aged 16 – 20 are entitled to a percentage of the minimum wage in reference to a sliding scale and how old they are.
- Enterprise agreements
Employers with an enterprise agreement must ensure the base rate of pay agreed does not result in any employee being paid less than the relevant modern award, or national minimum wage if no award is applicable.
- Unfair Dismissal Exceptions
Employees who earn over $145,400 on either award or enterprise agreements (before superannuation) are NOT eligible to make a claim for unfair dismissal. This has been increased from $142,000. The compensation limit under unfair dismissal laws has increased to $72,000.
- How much superannuation?
The maximum contributions base for statutory superannuation has increased from $211,040 per annum to $216,120 per annum. The contribution remains as 9.5%.
- Tax free threshold for ‘genuine redundancy’ payments
The first $10,399 of genuine redundancy payments is tax free, as well as $5,200 tax free for each completed year of service.