Employment Law Update : 1 July 2018 Updated Key Thresholds

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.