The new financial year often brings with it vital changes. This year in particular, (2020/2021) brings with it new minimum wages, national unfair dismissal regulations and tax thresholds/rates, as will be explored in this article.
The annual wage review of the Fair Work Commission (FWC) has seen a new minimum wage effected from July 1, 2020. For adults working full-time, the new wage is $753.80 per week, ($19.84) per hour. an increase of $13. All modern award rates of pay have also increased by 1.75 percent, applying in three respective stages. Casual rates remain at 25 percent of the full-time employment rate.
The FWC has also announced changes to the high-income threshold in national unfair dismissal jurisdiction. The high-income threshold for the purposes of the Fair Work Act has increased from $148,00 to $153,600, with maximum compensation for a claim being $76,800.
The new Fair Work Information Statement was also released on 1 July and is required to be given to all new employees.
Civil penalties appliable for breaches of the Fair Work Act have also increased. For corporate contraventions they are now $66,600 and for individual contraventions: $13,320.
In relation to taxation changes, there is a new Employment Termination Payment (ETP) cap. The amount up to the ETP cap is taxed at a concessional rate and the amount more than the cap is taxed at the highest marginal rate.
For genuine redundancy payments, there is now an increase in the tax-free amount. The new base limit is $10,989 and the amount for each completed year of service is $5,496.
For superannuation, the guarantee charge percentage remains at 9.5 percent, however, the maximum contribution base is now $57,090 per quarter.
If you require further assistance with respect to the above or would like to know more about employment and tax law, you are welcome to contact our team of experienced lawyers by clicking here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange conference or appointment. You can also order a free copy of our eBook on employment and contracting in Australia by clicking here.