From 1 July 2014 a number of changes to the law relating to employment came into effect. The changes brought in by the Commonwealth Government include an incentive for Australian employers to employ mature age jobseekers, an increase to the compulsory superannuation guarantee rate and increase to the
minimum wage.
Assistance to employers hiring mature-age jobseekers Starting from 1 July 2014, employers can receive up to $10,000.00 through the Restart Wage Subsidy if they employ an eligible job seeker aged 50 or older.
An eligible job seeker is someone who:
• Is 50 years of age or older;
• Has been unemployed for six months or more and has been in receipt of income support payments (such as Newstart Allowance, Parenting Payment, Disability Support Pension, Carer Payments, Aged Pension) for six months or more;
• Does not have any outstanding workers’ compensation claims against the employer; and
• Is not an immediate family member of the employer.
To qualify for the subsidy, the employment must be for a position:
• That commences on or after 1 July 2014;
• In which the employee works a minimum of 15 hours per week;
• Which is a sustainable ongoing position (which is not expected to end when the subsidy ceases);
• In which the employer is not receiving any other Government wage subsidies;
• That complies with the minimum standards of employment (As per the National Employment Standards or any relevant Award).
• That is not a commission-based, self-employment or a subcontracted position.
• Does not displace any existing employee.
• Does not bring the Commonwealth into disrepute.
Payments of the subsidy will be delivered after the worker has been employed for at least six months and will be paid in instalments over a period of up to two years. Mature age employees who are employed for at least 30 hours per week will receive the full rate of the Restart Wage Subsidy which will be paid in four six monthly instalments as follows:
• $3,000.00 after 6 months;
• $3,000.00 after 12 months;
• $2,000.00 after 18 months;
• $2,000.00 after 24 months.
Eligible workers employed between 15-29 hours per week will attract a pro-rata subsidy. To apply for the subsidy, employers can apply online through the Australian Job Search website at www.jobsearch.gov.au
Further information on the Restart Wage Subsidy is available on the Department of Employment website at www.employment.gov.au Increase to the compulsory superannuation guarantee rate All employers should be aware of their obligation to pay a minimum percentage of each eligible employee’s ordinary time earnings for each financial quarter into the employee’s nominated superannuation fund.
As from 1 July 2014 the compulsory superannuation guarantee rate for contributions will increase from 9.25% to 9.5%.
It is anticipated that the rate will remain fixed at 9.5% through to the completion of the 2018 financial year. It is expected that the rate will then increase by 0.5 percentage points each year until it reaches 12%. Employers who fail to meet their superannuation obligations should be aware that they will be liable to pay to the ATO the amount which should haven paid to the employee’s super fund plus interest and an administration fee. The liability to the ATO can sometimes be a significant amount where superannuation payments have not been made or have been incorrectly calculated by an employer over a prolonged period of time.
It is therefore essential for employers to ensure that the correct amount of superannuation is paid to each employee. More information on employers’ superannuation guarantee obligations can be found at the Fair Work Ombudsman’s website www.fairwork.gov.au or the ATO’s website www.ato.gov.au.
Increase to the minimum wage As from 1 July 2014 the Minimum wage will increase by $18.70 per week from $622.20 ($16.37 per hour) to $640.90 ($16.87 per) hour.
Modern award rates of pay will also increase by this amount or more. To ensure that the appropriate increase is passed on to workers from 1 July 2014, employers should check the Fair Work Commission website (www.fwc.gov.au) for pay rate revisions to modern awards. Employers can also consult the Fair
Work Ombudsman’s website which has online pay-checking resources (www.fairwork.gov.au).
