What's changing from 1 July 2014?
As another new financial year rings in more important changes and new rates apply from 1 July 2014.
Australia
Corporate/Commercial Law
As another new financial year rings in more important
changes and new rates apply from 1 July 2014. A snapshot of these
changes is set out below.
|
EFFECT OF CHANGES FROM 1 JULY 2014 |
NEW LEVELS FROM
1 JULY 2014 |
- WAGE INCREASES
|
- The National Weekly Minimum Wage that applies to employees not
covered by an award or agreement ("award/agreement
free employees") has increased from $622.20 per week
or $16.37 per hour
|
$640.90 per
week or $16.87 per hour |
|
- The casual loading for award/agreement free employees has
increased from 24%
|
25% |
|
- All modern award minimum wage rates have increased by 3%
(rounded to the nearest 10 cents)
- Modern award transitional provisions cease to apply from the
first full pay period on or after 1 July 2014
|
|
- SUPERANNUATION CHANGES
|
- The superannuation guarantee contribution rate has increased
from 9.25% with further incremental annual increases possibly
follow
|
9.50% |
|
- The maximum superannuation contribution base has increased from
$48,040 per quarter or $192,160 per annum
- An employer is not required to make superannuation
contributions on behalf of employees on earnings in excess of that
maximum contribution base
|
$49,430 per
quarter or $197,720 per annum |
- NEW HIGH INCOME THRESHOLD
|
- The High Income Threshold has increased from $129,300 per
annum
- Employers must take care when determining whether an
employee's earnings are above this threshold because some
amounts paid to the employee may not be counted (for example,
commissions, bonuses, overtime, reimbursements and compulsory
superannuation contributions)
- Award/agreement free employees' access to the unfair
dismissal regime is restricted by the high income threshold.
- 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
guarantee
|
$133,000 per annum |
|
- The maximum compensation available for unfair dismissal claims
has increased from the lower of $64,650 or 26 weeks' pay
|
Maximum compensation $66,500
or 26 weeks' pay |
- TAXATION OF EMPLOYMENT TERMINATION PAYMENT (ETP)
CHANGES
|
- The tax-free component for bona fide redundancy ETPs has
increased from a base limit of $9,246 and $4,624 for each completed
year of service
|
Base limit of $9,514 and $4,758 for each completed year
of service |
|
- The ETP cap has increased from $180,000. Amounts over this cap
are not subject to concessional tax treatment and are taxed at the
highest marginal tax rate
|
$185,000 |
- FEE INCREASES
|
- The filing fees for unfair dismissal and general protections
applications have each increased from $65.50
|
$67.20 per application |
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.