Employment Law changes for the new Financial Year

Stephen Booth

We’re in a new financial year, which means that because of annual indexation and changes to the law many reference points relevant to employment law change.

Here are some of the most important changes applying from 1 July 2016.

Salary cap for unfair dismissal $138,900 (up from $136,700: employees paid more than $138,900 base salary per annum, and not covered by an award, cannot claim unfair dismissal – base salary does not include 9.5% superannuation and at-risk remuneration, but does include the value of other guaranteed monetary or non-monetary benefits)

Filing fee for dismissals, general protections and anti bullying applications

$69.60 (up from $68.60)

Compensation limit for dismissals

$69,450 (6 months’ remuneration - up from $68,350)

National Minimum Wage

$672.70 per week (up from $656.90 per week), or $17.70 per hour 

Award minimum wages

All award pay rates increased by 2.4% effective 1 July 

Superannuation Guarantee Percentage

9.5% (foreshadowed to remain at this rate until 30 June 2021) 
Superannuation Guarantee cap

$51,620 per quarter - $206,480 per annum (earnings above which are not subject to compulsory contributions)

Redundancy tax concessions

In a genuine redundancy payment, $9,936, plus $4,969 per completed year of service, is tax free

Eligible Termination Payment cap

$195,000 (concessional tax treatment below this amount, highest marginal tax rate above)

Fair Work Information Statement This must be given to all employees on commencement of employment. To download the most recent version click here - new version up in July.

Points for attention:

  1. Beware of paying less than the National Minimum Wage to any employee not covered by any age or disability-related percentage rate
  2. For employers with 19 or fewer employees, the SuperStream system (simplified electronic superannuation compliance) applies from 1 July, with compliance required for small businesses, by 28 October 2016 (the ATO has extended the previous 30 June 2016 deadline - employers of 20 or more should already be complying).

If you need more information about any of these issues, please contact Stephen Booth, Anna Ford or Lisa Qiu on +61 2 9895 9200.