What’s new from 30 June 2014

This 30 June will see various changes of which employers will need to be aware:

Wages increase

Increases in wage rates resulting from the Fair Work Commission’s annual wage review decision will take effect from the first full pay period commencing on or after 1 July 2014.

The Commission awarded a 3% increase.  The new wage rates for the various Modern Awards can be accessed at https://www.fwc.gov.au/awards-and-agreements/awards/recent-award-variations.

Superannuation

From 1 July 2014, minimum compulsory employer superannuation contributions will rise from 9.25% to 9.5%.  This rate will remain in place until 30 June 2018 when the rate will increase annually by .5% a year until it reaches 12% in 2022.

Transitional provisions

From 1 July 2014, transitional provisions in Modern Awards will cease to have effect.  Transitional provisions permit employers to phase in any difference in pre-Modern Award wage rates, casual loadings, penalty rates and shift allowances.  This means that from 1 July, the whole of the rates set out in Modern Awards must be applied.

High Income Threshold

Employees being paid at least the high income threshold can agree with their employer that provisions of a relevant Modern Award do not apply to them.  This is also the amount under which Award-free employees must be paid before they can make an unfair dismissal claim.  From 1 July 2014, the high income threshold will increase to $133,000 per annum.