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Employment Law Update — 1 July 2017 Key Thresholds

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By James Cox, Lawyer, MST Lawyers

Key workplace law figures from 1 July 2017

National Minimum Wage & Modern Award Minimum Wage

The Fair Work Commission made a decision on 6 June 2017 to increase both the national minimum wage rate and the modern award minimum wage rates by 3.3% to take effect from the first full pay period after 1 July 2017

Superannuation

The maximum superannuation contribution base will increase from $51,620.00 to $52,760.00 per quarter.  

The superannuation guarantee remains at 9.5% of ordinary time earnings, and will not change until 1 July 2021 when it increases to 10%.

Unfair dismissal high-income threshold and compensation limit

The high-income threshold under the Fair Work Act 2009 will be increased to $142,000. This means that the maximum cap for unfair dismissal remedies (being 26 weeks’ pay) will increase to $71,000.

Note that modern awards will not apply to any employee who earns more than the high-income threshold.

 

 

 

From 1 July 2016

 

From 1 July 2017

 

National Minimum Wage

$672.70 per week

$17.70 per hour

 

$694.90 per week

$18.29 per hour

Modern Award Minimum Rates

2.4% increase

 

3.3% increase

Superannuation Guarantee

9.5% of ordinary time earnings

 

9.5% of ordinary time earnings (unchanged)

Maximum super contribution base

$51,620 per quarter

 

$52,760 per quarter

 

High-income threshold (for the purpose of unfair dismissal claims      and award  application)

$138,900

 

$142,000

 

Maximum compensation for unfair dismissal

$69,450

 

$71,000

 

Penalty unit value

$180

 

$210

Maximum civil penalty under the  Fair Work Act 2009 for a corporate entity*

$54,000

 

$63,000

 

Maximum civil penalty under the Fair Work Act 2009  for an individual*

$10,800

 

$12,600

 

*If and when the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 (see our previous article) is passed by the Government, the maximum civil penalty under the Fair Work Act 2009 may be increased tenfold for a “serious contravention”.

For more information, please contact our Employment Law team by email or by telephone Ph: +61 3 8540 0200.