Fair Work Commission Annual Wage Review 2023
Uncategorized
New employment related thresholds
A number of employment related financial thresholds are indexed annually each 1 July. Below is a summary of some important changes which took effect from 1 July 2023.
The key changes effective, as of 1 July 2023, are summarised as follows:
| Key Change | Summary | Rate from 1 July 2023 |
|---|---|---|
| National Minimum Wage | The national minimum wage is the minimum weekly wage payable to employees not covered by a modern award or enterprise agreement. | Increased to $882.80 per week or $23.23 per hour. Award minimum rates will also increase by 5.75%. |
| High-income threshold | This threshold impacts how awards apply and limits access to high-income employees from seeking to access unfair dismissal protections | $167,500 |
| Compensation cap | The maximum amount of compensation payable in an unfair dismissal claim | $83,750 or 26 weeks' wages (whichever is less) |
| Superannuation Guarantee | The superannuation guarantee (SG) specifies compulsory superannuation contributions made by Australian employers on behalf of employees. | 11% |
| Superannuation maximum contribution base | The maximum superannuation contribution base determines the contribution an employer is required to make on behalf of an employee | $62,270 per quarter |
| Redundancy tax-free limit | Genuine redundancy payments refer to payments received by an employee who is dismissed because the job they were doing is redundant. Employees who are made genuinely redundant are able to claim a portion of their redundancy payment, tax-free | $11,985 + $5,994 per each year of completed service |
Paid Parental Leave Scheme
From 1 July 2023 the Paid Parental Leave Amendment (Improvement for Families and Gender Equality) Act 2023 (Act) has come into place. This Act provides changes to the paid parental leave entitlements for parents of children born or adopted from 1 July 2023.
From 1 July 2023, the current Paid Parental Leave entitlement (18 weeks) and the Dad and Partner Pay entitlement (2 weeks) were combined into one payment. The entitlement is increased to 100 days, or 20 weeks.
Single parents will be entitled to the full 20 weeks’ paid leave.
There is also more flexibility with eligible employees now being able to claim the 20 weeks’ leave in blocks until the child reaches the age of two.
Increase to Fair Work Commissions filing fees
As at 1 July 2023, the filing fee for dismissal, general protections, bullying and sexual harassment at work applications increased to $83.30.
If you would like more information in relation to any of the new employment related thresholds, and in particular increases to the National Minimum Wage and Award Wages, please contact one of our team members below.
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