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Employment Law Changes for the 2019-2020 Financial Year

Sep 05, 2019


  • 2min

Employment Law Changes for the 2019-2020 Financial Year

Industry News

Every year, there are both minor and major changes to Australia’s employment regulatory landscape. Some changes affect only certain businesses and industries, while other changes affect every workplace across the country regardless of their industry. Here is a list below of the new Employment Law and annual indexation changes for 2019-2020 Financial Year.

National Minimum Wage

Each year the Fair Work Commission reviews and updates the National Minimum Wage. These changes affect both Award-covered employees and Award-free minimum wage employees.

$740.80 per week, up from $719.20 per week – or $19.49 per hour, up from $18.93 per hour.  

Single Touch Payroll

Single Touch Payroll (STP) is a new payroll reporting scheme launched by the Australian Taxation Office (ATO).

Under this scheme, if you employ 20 or more employees, you are required to report to the ATO every time you pay your employees. The information you need to give the ATO includes your employees’ salaries or wages, deductions, allowances, pay as you go (PAYG) withholding, and superannuation.

Salary Cap for Unfair Dismissal

$148,700.

This is up from the previous $145,400.  Employees earning more than $148,700 base salary per annum, and who are not covered by an award, cannot claim unfair dismissal.  Base salary does not include 9.5% superannuation and at-risk remuneration, but does include the value of other guaranteed monetary or non-monetary benefits.  

Filing fee for dismissals, general protections and anti-bullying applications

$73.20, up from $71.90.

Compensation Limit for dismissals

$74,350, up from $72,700.

Superannuation Guarantee Percentage

9.5%.

Maximum Super Contribution Base

$55,270 per quarter, or $221,080 per annum, earnings above which are not subject to compulsory contributions.

Redundancy Tax Concessions

In a genuine redundancy payment, $10,638 plus $5,320 for each year of completed service is tax free.

Employment Termination Payment cap

$210,000.

For more information, please see: Applying the ETP caps (ATO).

Fair Work Information Statement

This document must be given to all employees on commencement of employment.  It is crucial for employers to view the updated version for 2019-2020. For more information, click here.  

Point for attention

Beware of paying less than the National Minimum Wage to any employee not covered by any age or disability-related percentage rate.  

Total HRM encourages any businesses that have concerns about Employment Contracts or wage rates to get in contact with us on 1800 868 254.

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