Employment and Migration Blog

EOFY already!

Posted by Stephen Booth on 27 Jun 2011

Just a few things to bear in mind, and get in order if need be, as 1 July approaches:

Paid parental leave

The PPL scheme comes into full operation: so participation by employers is obligatory, not optional from 1 July. That doesn’t mean you have to pay PPL yourself: the Government pays. But it does mean that when an employee claims PPL from Centrelink/Family Assistance Office, you have to supply employee and payroll details, receive payments and pass them on to the employee on leave, deduct tax, not add super etc.

Why do employers have to do this rather than the FAO itself? Basically, because it makes some things administratively easier for the government, and because that’s the way it is …

Pay increases

Earlier this month, FWA decided that award wages and the National Minimum Wage would all increase by 3.4% effective 1 July. That takes the National Minimum Wage to $589.30 for a 38 hour week, $15.51 an hour.

If you are paying less than that to an over-21 employee, you’ve probably got a problem (Call us now!).

If you pay employees at or close to award rates, check out the new award rates to make sure you are paying at least the applicable minimum rate.

Modern award transition

If you relied on the transitional arrangements under a modern award to spread increases (or reductions) in pay rates from old state award rates to modern award rates over 5 years, the next stage of that happens from 1 July. So, in the case of an increase, you now shift from paying 20% of the increase to 40%.

For all the effort lavished on them, the transitional arrangements were so complex that few employers, in my experience, found it worth the trouble. Still, if anyone out there did take the trouble, time to get the calculator out again.

Unfair dismissal salary cap

Currently $113,800 (base salary and other guaranteed, non-expense related income), this cap will increase by the CPI from 1 July. Watch this space for the exact number when it is released.

Happy 2011-12.