Important HR & Payroll updates for FY16
Welcome FY16!
Following are some important HR and Payroll related changes that apply from 1 July 2015.
National Minimum Wage
For employees not covered by an Award or Enterprise Agreement, the National Minimum Wage applies. The National Minimum Wage has increased to: $640.90 per week or $16.87 per hour.
Award Rates
Employees who are covered by Awards and who receive Award rates of pay have just received a 2.5% increase. Check the free Award Pay Calculator to find pay rates, penalties and allowances for all awards.
High Income Threshold
Employees paid above the high income threshold are not covered by modern Awards and they are also restricted from the unfair dismissal regime. However, the National Employment Standards (NES) still applies.
The High Income Threshold has now increased to: $136,700 per annum.
When calculating an employee’s earnings to see if they meet the threshold, payments such as commissions, incentive-based payments and bonuses, overtime (unless it is guaranteed), reimbursements and statutory Superannuation contributions do not apply.
Unfair Dismissal Claims
The compensation limit for unfair dismissal claims has increased to $68,350 or 26 weeks’ pay. It is also important to note that other possible outcomes to unfair dismissal claims can include reinstatement and often with back-pay.
Employment Termination Payments (ETP)
The tax free component for bona fide redundancies ETP’s base limit has increased to $9,780 and the amount for each completed year of service is now $4,891. The ETP cap for life benefit and death benefit termination payments is now $195,000.
Need help and advice?
If you need help and practical solutions for resolving employment or workplace issues, don’t hesitate to contact us at Human Resource Services P/L for an obligation free chat – 07 5530 1571
