The threshold applies to an employee’s annual rate of earnings and includes wages, any amounts applied or dealt with on the employee’s behalf and the agreed value of any non-monetary fringe benefits such as a motor vehicle. Overtime and performance-based bonuses are not included in the calculation of income because they cannot be determined in advance.
The maximum compensation limit will increase to $72,700 post 1 July.
Federal minimum wage increase 2018/19
Every year, the Fair Work Commission’s (FWC) Expert Panel reviews the minimum wages received by employees in the national workplace relations system. At the conclusion of the review, a national minimum wage order. In March 2018 the FWC increased the national minimum wage by 3.5 per cent, to $719.20 a week. An increase of 3.5 pc amounts to an extra $24.30 a week for a 38-hour week. The new hourly minimum rate of $18.93 will take effect from July 1.
Superannuation Contributions
The Superannuation Guarantee (SG) rate will remain at 9.5% for another 3 years (until 30 June 2021), increasing to 10% from July 2021, and eventually increasing to 12% from July 2025. The maximum superannuation contribution base is used to determine the maximum Superannuation Guarantee (SG) contributions that an employer is required to make. The concessional (before-tax) contributions cap for the 2018/2019 year remains at $25,000 for all age groups.
Best practice requires that employers undertake an annual review of staff salary arrangements to ensure compliance with the applicable statutory minimum award entitlements and superannuation obligations. BBW lawyers specialises in employment law and can provide assistance.