Employment update - New numbers for key employment issues for a new tax year
July 2018 | News | Peter Wilson
These numbers cover unfair dismissal, minimum wage and redundancy entitlements as well as PAYG deductions.
From 1 July 2018 the high income threshold in unfair dismissal cases will increase to $145,400. If an employee's annual earnings exceed this threshold and they are not covered by a modern award or enterprise agreement they will not be able to bring an unfair dismissal claim. Also the maximum amount of compensation for unfair dismissals is $72,700 for dismissals occurring on or after 1 July 2018.
From the first full pay period commencing on or after 1 July 2018, the national minimum wage for award/agreement free employees is $719.20 per week or $18.93 per hour. Lower rates apply for junior employees, employees on a training arrangement, or employees with a disability. The casual loading for award/agreement free employees remains at 25 per cent.
Redundancy tax free threshold
Genuine redundancy and early retirement scheme payments are tax free up to a limit based on the employee's years of service. In 2018-2019 the tax-free limit is equal to $10,399, plus $5,200 multiplied by the years of service.
New individual PAYG deduction rates
The Australian Taxation Office recently issued new weekly, fortnightly and monthly PAYG tax and HELP/SSL/TSL deduction tables for wages and salaries paid from 1 July 2018. These reflect the reduced personal income tax rates applicable to some taxpayers from that date and the newly indexed HELP deduction thresholds.
Modern Awards continue to be reviewed by the Fair Work Commission ('FWC') and many awards will change over 2018. Employers should know which awards cover their employees and subscribe to the relevant FWC Award subscription services so they get notified of variations in relevant awards.
Very few employers do not have any award-covered employees. For example, clerical/ administrative employees are award-covered – as are secretaries, receptionists, clerks, accounts payable, and payroll staff. Employers need to be aware of the award conditions that are relevant for their employees. For example, some awards only allow payment of annual salaries under certain conditions, and there are hours of work and consultation on change requirements.
If you want to discuss any of these employment issues please contact Peter Wilson at email@example.com or by calling 02 9466 5022.