It’s the new financial year and there are a raft of legal changes taking effect today for the business community to adhere to.
Minimum wage increase
The effect of this increase will see the National Minimum Wage increase from 1 July 2013 to $622.20 per week, or $16.37 per hour. The new rates will need to be paid from the first full pay period on or following July 1, 2013.
Increase in High Income Threshold/Unfair Dismissal
- the high income threshold increases to $129,300
- the compensation limit under unfair dismissal increases to $64,650.
The high income threshold is indexed annually on 1 July.
The high income threshold affects how modern awards apply to employees. It also affects employees‚Äô ability to access unfair dismissal. Higher income employees are generally not allowed to apply for unfair dismissal since the terms of employment can be different above this threshold. As well as affecting unfair dismissal rights, the threshold impacts the maximum amount payable for an unfair dismissal case. This amount is capped at either half of the high income threshold or six months of the dismissed employee’s wage.
Superannuation
From July 1, employers will contribute 9.25% to superannuation for each of their eligible employees, an increase of 0.25% from the current rate of 9%.
Also from July 1, businesses will be required to pay elderly people aged 70 and above superannuation entitlements, as the existing upper age limit for employee super guarantee eligibility will be removed.
Superannuation is paid on top of the minimum entitlements in the award or agreement that applies.
Loss carry-back measures
Small businesses are now able to carry back their losses to offset past profits and receive a tax refund. Businesses can carry back up to $1 million in deductions against profits made in the previous year to receive a refund of up to $300,000 each year from tax previously paid – representing the company tax rate of 30 cents in the dollar.