A number of key thresholds will change from 1 July 2019.
National Minimum Wage & Modern Award Minimum Wage
On 30 May 2019, the Fair Work Commission determined an increase both the national minimum wage rate and the modern award minimum wage rates by 3.0%. This increase will take effect from the first full pay period after 1 July 2019.
Superannuation
The maximum superannuation contribution base will increase from $54,030 to $55,270 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 $148,700. This means that the maximum cap for unfair dismissal remedies (being 26 weeks’ pay) will increase to $74,350.00.
Note that modern awards will not apply to any employee who earns more than the high-income threshold.
| FY 2018/2019 | FY 2019/2020 |
National Minimum Wage | $719.20 per week $18.93 per hour | $740.80 per week $19.49 per hour |
Modern Award Minimum Rates | 3.5% increase from previous year | 3% increase from previous year |
Superannuation Guarantee | 9.5% of ordinary time earnings (unchanged) | 9.5% of ordinary time earnings (unchanged) |
Maximum super contribution base | $54,030 per quarter | $55,270 per quarter |
High-income threshold (for the purpose of unfair dismissal claims and award application) | $145,400 | $148,700 |
Maximum compensation for unfair dismissal | $72,700 | $74,350 |
Federal 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.
