New Financial Year: Wages and Workplace Law Changes

We all know minimum wages have just increased by 3.75% and the Superannuation (SGC) Rate increased to 11.5%, but there are a few more basic increases in HR matters which employers should look out for as from 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.

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.

Employees earning more than $175,000 cannot make unfair dismissal claims unless they are covered by a modern award or an enterprise agreement.

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 2024, the civil penalty unit for single breaches of the Fair Work Act increased from $275 to $313.

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).

For more information, contact gabrielle@sullivanslegal.com.au