Each year, the government changes its fees and charges, and statutory thresholds and caps, effective with the start of the new financial year. For example, ASIC has increased company and business name fees from 1 July 2024 – you can find more details here.
One of the most significant changes is to employee related entitlements that became effective on 1 July 2024.
Minimum Wage Increase
Award minimum wages increased by 3.75%, based on a 38-hour week for a full-time employee.
As of 1 July 2024, the National Minimum Wage increased by $33.10 per week (or 3.75%) to $915.90 per week or $24.10 per hour.
Superannuation
From 1 July 2024, the Superannuation Guarantee Contributions Rate increased from 11% to 11.5%.
From 1 July 2024, the maximum quarterly contribution base increased from $62,270 to $65,070; and the maximum annual contribution base increased from $249,080 to $260,280.
The maximum contribution bases are the maximum salary amounts for which an employer must contribute superannuation guarantee amounts, unless the employer has agreed to pay superannuation contributions on the total salary paid.
Fair Work Commission Filing Fees
From 1 July 2024, filing fees for applications for unfair dismissal, general protections and anti-bullying increased from $83.80 to $87.20.[i]
Unfair Dismissal High Income Threshold – Unfair Dismissal Limits and Caps
From 1 July 2024, the High Income Threshold increased from $167,500 to $175,000.[ii]
Employees earning more than $175,000 cannot make unfair dismissal claims unless they are covered by a modern award or an enterprise agreement.
The following are included in the High Income Threshold calculation:
- Wages;
- Superannuation;
- Money paid on behalf of the employee (salary sacrifice amounts); and
- The agreed monetary value of non-monetary benefits (company car or mobile phone benefits).
The High Income Threshold calculation does not include:
- Payments which cannot be determined in advance (commissions, incentive-based payments and bonuses);
- Overtime (unless the overtime is guaranteed); and
- Reimbursements.
Unfair Dismissal Compensation Cap
The maximum compensation for unfair dismissal applications is the lesser of 6 months pay or half the Unfair Dismissal High Income Threshold, so the cap has increased from 1 July 2024 from $83,750 to $87,500.
Redundancy – Tax Free Amount
The Tax Free Amount for genuine redundancy payments is indexed annually. From 1 July 2024 the TFA increased from $11,985 to $12,524.
The additional amount per completed year of service increased from $5,994 to $6,264.
Employment Termination Payments (ETP)
The cap for the lower tax rate on ETPs has increased from $235,000 to $435,000 for the 2024-25 income year.
Civil Penalties for Breaches of the Fair Work Act
From 1 July 2023, the civil penalty unit for single breaches of the Fair Work Act increased from $275 to $313. [iii]
The maximum penalty from 1 July 2023 is, for:
- a company (15+ employees): $469,500 for a non-serious contravention, $4,695,000 for a serious contravention;
- a small business company (<15 employees): $93,900 for a non-serious contravention, $939,000 for a serious contravention;
- an individual: $18,780 for a non-serious contravention, $187,800 for a serious contravention.
Multiple breaches can result in multiple penalties being imposed.
Parental Leave
From 1 July 2024 Parental Leave Pay for families increased to 22 weeks based on a 5 day work week. The days available depends on the child’s date of birth or adoption. The family income limit increased from $350,000 to $364,350 (where one parent does not meet the individual income level test of $174,788).
What Should Employers Do?
Keep up to date on these and other changes, employment law is constantly changing.
If you have any employment law issues contact Peter McNamara for practical, strategic workplace law advice.
[i] based on the index in reg 3.02 of the Fair Work Regulations 2009 (Cth))
[ii] (based on the index in reg 2.13 of the Fair Work Regulations 2009 (Cth).
[iii] based on the index per s 4AA(3) Crimes Act 1914 (Cth)