There are some important changes to thresholds in the workplace
relations field which have now come into effect on 1 July 2012 from
indexation which occurs yearly.
Employees previously excluded from claiming unfair dismissal may
now be eligible to make such a claim on termination. Employees
previously on a guarantee of annual earnings might have, due to
indexation, fallen below the high income guarantee of annual
earnings and be entitled to penalty rates, overtime and other
Modern Award conditions.
The following table is a useful reference guide summarising
changes to key thresholds:
Threshold
Last financial year
Current financial year (2012/13)
Guarantee of annual earnings and unfair dismissal
cap
A$118,100 per annum
A$123,300 per annum
Maximum compensation for unfair dismissal
A$59,050
A$61,650
National minimum wage for award-free
employees
A$589.30 per week; or
A$15.51 per hour
A$606.40 per week; or
A$15.96 per hour
Tax-free threshold for genuine redundancy
payment
A$8,435 + A$4,218 for each completed year of service
A$8,806 + $A4,404 for each completed year of service
Maximum superannuation contribution base
A$43,820 per quarter; or
A$175,280 per annum
A$45,750 per quarter; or
A$183,000 per annum
Concessional superannuation contribution
Employees under 50: A$25,000 per annum
Employees over 50: A$50,000 per annum
All employees: A$25,000 per annum
Guarantee of annual earnings and unfair dismissal cap
The guarantee of annual earnings and unfair dismissal cap
includes the following:
wages
money paid on behalf of the employees (eg fringe benefits,
salary sacrifice)
agreed value of non-monetary benefits (eg vehicle, iPad).
The guarantee of annual earnings and unfair dismissal cap does
not include:
payments which cannot be agreed or determined in advance
superannuation guarantee contributions.
Superannuation
There have been significant changes to concessional
superannuation contributions as part of the Federal
Government's last budget. Employees over the age of 50 have had
their concessional superannuation contributions limits halved. The
entitlement to make concessional superannuation contribution occurs
where contributions up to the limit is taxed at 15% only. Any
contributions over the limit are taxed at the highest marginal tax
rate and are included in the calculation of the Medicare Levy. The
limit for concessional superannuation contributions is now A$25,000
for all employees.
Employers together with employees may now wish to re-examine
concessional superannuation contribution in light of these changes
to ensure that any arrangements, such as salary sacrifice, continue
to benefit both the employer and employee.
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.
Middletons has been awarded a 2012 EOWA Employer of Choice for
Women citation acknowledging our commitment to workplace
diversity.
Specific Questions relating to this article should be addressed directly to the author.
A court has determined that an employee had a workplace right under the Fair Work Act 2009 to make a complaint entitling the employee to proceed with her general protections claim.
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