A number of key thresholds will change from 1 July 2018.
National Minimum Wage & Modern Award Minimum Wage
The Fair Work Commission made a decision on 1 June 2018 to increase both the national minimum wage rate and the modern award minimum wage rates by 3.5% to take effect from the first full pay period after 1 July 2018.
Superannuation
The maximum superannuation contribution base will increase from $52,760.00 to $54,030 per quarter. The superannuation guarantee remains at 9.5% of ordinary time earnings, and will not change until 1 July 2021, when it is scheduled to increase to 10%.
Unfair dismissal high income threshold and compensation limit
The high income threshold under the Fair Work Act 2009 will be increased to $145,400.00. This means that the maximum cap for unfair dismissal remedies (being 26 weeks’ pay) will increase to $72,700.00.
Note that modern awards will not apply to any employee who earns more than the high income threshold.
| From 1 July 2017 | From 1 July 2018 |
National Minimum Wage | $694.90 per week $18.29 per hour | $719.20 per week $18.93 per hour |
Modern Award Minimum Rates | 3.3% increase | 3.5% increase |
Superannuation Guarantee | 9.5% of ordinary time earnings (unchanged) | 9.5% of ordinary time earnings (unchanged) |
Maximum super contribution base | $52,760 per quarter | $54,030 per quarter |
High income threshold (for the purpose of unfair dismissal claims and award application) | $142,000 | $145,400 |
Maximum compensation for unfair dismissal | $71,000 | $72,700 |
Penalty unit value | $210 | Will remain unchanged until 1 July 2020. |
Maximum civil penalty under the Fair Work Act 2009 for a corporate entity* | $63,000 for non-serious contravention $630,000 for serious contravention | |
Maximum civil penalty under the Fair Work Act 2009 for an individual* | $12,600 for non-serious contravention $126,000 for serious contravention |
For more information, please contact the MST Lawyers’ Employment Law team by email or by telephone +61 3 8540 0200.
