The new financial year has seen changes to employment law with respect to superannuation, pay and more – this bulletin summarises the key changes.
If you have any queries or would like further information regarding anything you read in our bulletins, please contact:
Joe Mullavey
Principal
M: 0416 794 061
E: jmullavey@pageseager.com.au
Audrey Clarkson
Associate
T: (03) 6235 5125
E: aclarkson@pageseager.com.au
Superannuation eligibility and guarantee rate
- From 1 July 2022, the guarantee rate of superannuation will increase from 10.0% to 10.5%.
- From 1 July 2022, employees may be eligible for superannuation guarantee regardless of how much they earn. The previous $450.00 per month threshold for superannuation eligibility has been removed.
Increase to National Minimum Wage
- From 1 July 2022, the National Minimum Wage has increased by 5.2%.
- The National Minimum Wage is now $21.38 per hour or $812.60 per week.
Increase to Minimum Award Wage
- From 1 July 2022, the Minimum Award Wage has increased by 4.6%, however for some Modern Awards the increase will come into effect from 1 October 2022 1.
- The amount of the increase payable depends on the weekly income of employees.
Unfair Dismissal – increase to compensation cap and high income threshold
- The high income threshold for unfair dismissal eligibility has been increased.
- From 1 July 2022, the high income threshold will be $162,000.00.
- The maximum amount of compensation that an employer may be required to pay for an unfair dismissal remedy will be $81,000.00.
- If an employee is not covered by a Modern Award or an Enterprise Agreement, they must earn less than the high income threshold to be protected from unfair dismissal. The employee must also satisfy the minimum employment period required under the Fair Work Act 2009 (Cth).
New Fair Work Information Statement
- The Fair Work Commission has released an updated Fair Work Information Statement (Statement) which includes information about the new minimum rates of pay.
- A copy of the Statement is available on the Fair Work Commission website.
- All employees must be provided with a copy of the statement at the commencement of their employment.
Tips for employers in managing the changes
Employers can respond to the changes by taking the following actions:
- Notify employees of changes to superannuation and wages where relevant;
- Update your payroll and accounting systems to account for the changes to superannuation and pay;
- Take the opportunity to review and update all annualised wage agreements that may be affected by the increases to superannuation and wages;
- Ensure that the newly updated Fair Work Information Statement is provided to all new employees from 1 July 2022 onwards.
Published: 21 July 2022
1 For some awards in the aviation, hospitality and tourism industries, the increase will happen from the first full pay period on or after 1 October 2022. A list of all affected awards is available on the Fair Work Commission website.
