Numerous workplace legislative and regulatory changes come into effect this Saturday, 1 July.
National and modern award minimum wages
- Minimum wage rates in modern awards – increase by 3.3% from first full pay period commencing on or after 1 July 2017 (rounded to the nearest 10 cents)
- National minimum wage – increased by 3.3% to $694.90 per week, equating to an hourly rate of $18.29
Penalty rate provisions for some permanent and casual employees working on Sundays, public holidays, evenings or after midnight in some awards for the hospitality, restaurant and retail industries, rates will drop, beginning a transition phase that lasts three or four years, depending on the award.
- changes to public holiday penalty rates start from 1 July 2017
- changes to the evening work and after midnight penalties (in the Restaurant and Fast Food Awards) start from 1 July 2017
- changes to Sunday penalty rates are being introduced over 3 or 4 years starting from 1 July 2017
For more details on Penalty rate changes visit – Australia Government Fairwork
If you earn less than $40,000 or are self-employed you will benefit from more flexible super contribution rules. If you are a high income earner or have a large super balance there are new contribution limits and a balance cap that will change how much you can add to your super.
- Maximum superannuation guarantee contributions will increase to $52,760 per quarter, from $51,620.
- General concessional contributions cap will drop to $25k from $30k and the $35k cap for people over the age of 50 will be removed.
- Annual non-concessional (after tax) contributions cap will be cut to $100,000
- Eligible taxpayers that earn up to $37,000 a year get an additional super contribution from the Government, equal to 15% of before tax (employer and salary sacrifice) super contributions, up to $500. This was called the low income super contribution (LISC), now called low income superannuation tax offset (LISTO)
- Introduction of a $1.6 million transfer balance cap
- Removal of tax exemption for transition-to-retirement pensions (TRIPs)
For more details on Penalty rate changes visit – ASIC MoneySmart
High income threshold
The high income threshold will increase to $142,000 per annum, effective 1 July 2017. The previous threshold was $138,900 per annum until 30 June 2016.
The high income threshold is the amount by which a category of non-award employee is excluded from the unfair dismissal provisions of the Fair Work Act, and in relation to the guarantee of annual earnings relating to modern awards.
All changes become effective as of Saturday 1st July 2017.