August 18, 2022

Volume XII, Number 230

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Workplace Wrap - June 2022

As we approach 1 July 2022, a number of the key financial thresholds relating to employees will increase.

We have prepared a handy key thresholds table for the 2022/2023 financial year for employers. Click here to view the key thresholds table. 

From 1 July 2022, the national minimum wage will increase by 5.2 percent. 

Award minimum wages will rise by 4.6 percent, subject to a minimum rise of AU$40 per week for full time employees. Most awards will increase from 1 July 2022. A small number of awards, where the Fair Work Commission has deemed there to be exceptional circumstances, will instead increase from 1 October 2022. 

The awards that will increase from 1 October 2022 are:

  • Air Pilots Award 2020

  • Aircraft Cabin Crew Award 2002

  • Airline Operations - Ground Staff Award 2020

  • Airport Employees Award 2020

  • Airservices Australia Enterprise Award 2016

  • Alpine Resorts Award 2020

  • Hospitality Industry (General) Award 2020

  • Marine Tourism and Charter Vessels Award 2020

  • Registered and Licensed Clubs Award 2020

  • Restaurant Industry Award 2020.

From 1 July 2022, the superannuation guarantee rate will increase to 10.5 percent.

The changes will apply from the first full pay period starting on or after 1 July 2022.

In another superannuation change, the AU$450 per month super guarantee threshold will be removed from 1 July 2022. This is a major change meaning that employers will be required to make super guarantee contributions for all eligible employees regardless of what the employee is paid. Employees will still be required to satisfy other super guarantee eligibility requirements in order to receive employer contributions to their superannuation where relevant, such as working a minimum of 30 hours per week for employees aged under 18 years. 

The Fair Work Act's high income threshold will also be indexed and from 1 July 2022 will be increased to AU$162,000. Non-award covered employees who earn in excess of AU$162,000 will be unable to bring an unfair dismissal claim.

What You Should Be Doing from 1 July

Employers should:

  • Review annualised salary arrangements to ensure that the annualised wage rate is sufficient to meet or exceed the employees' minimum award/minimum wage entitlements taking into account the 4.6 percent to 5.2% percent increase.

  • Update payroll systems and processes to ensure the increased wages and superannuation contribution are paid from the first full pay period starting on or after 1 July 2022.

  • Review enterprise agreement pay rates (where applicable) and ensure the pay rates do not fall below the applicable modern award base rate or the national minimum wage (as applicable).

  • Ensure all employees who are eligible are being paid the appropriate super guarantee. 

  • Be mindful of the new high income threshold of AU$162,000.

Copyright 2022 K & L GatesNational Law Review, Volume XII, Number 180
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About this Author

 Michaela Moloney, Partner, Melbourne
Partner

Ms. Moloney has worked for a wide cross section of clients including employers in the public sector, health, education, retail, energy and manufacturing industries and has significant experience in all aspects of employment, industrial and discrimination law. She acts on a broad range of matters for employers including drafting and interpreting employment agreements and policies, managing employee issues arising out of sale of business and outsourcing transactions, assisting employers with the discipline of employees and termination of employment, negotiating collective agreements,...

61.3.9640.4430
Paul Hardman, KL Gates, Workplace Safety Investigations Lawyer, Labor Disputes Attorney
Partner

Mr. Hardman is a partner in the Labour Employment and Workplace Safety practice in the Brisbane office. He provides a wide range of advice and services to clients regarding employment, safety, investigations and disputes relevant to the workplace.

He is an experienced advocate and has appeared extensively in both State and Federal courts and tribunals in employment, safety and other contentious matters. He has experience across a broad range of industries including construction, water, manufacturing, agricultural, petroleum, gas and mining....

61-7-3233-1248
Stephen Hardy Attorney Labor Employment Workplace Safety KL Gates Sydney
Partner

Stephen Hardy is a partner in the labour, employment and workplace safety practice. Stephen is an established practitioner who represents Australian and international clients on a variety of employment matters. These include human resources, industrial relations, executive, business protection and complex compliance related matters, the employment aspects of mergers and acquisitions, workplace restructuring and business transformation. This work is undertaken for clients across a wide range of industries including banking and financial services, insurance, retail,...

61-2-9513-2464
Nick Ruskin, KL Gates, Australia, employment claims lawyer, anti discrimination issues attorney
Partner

Mr Ruskin practises in labour relations and employment law. He represents corporations in a number of industries including energy, retail, services and healthcare, and public sector clients in the health, higher education, government and community sectors.

He has extensive experience in labour disputes, employment claims, anti-discrimination issues, legislative compliance, advocacy before tribunals and providing forthright, practical advice to clients.

He has been engaged from time to time as an external consultant to...

61-3-9640-4431
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