30/06/2025
Tomorrow marks the start of a new financial year, and also number of important changes in employment laws.
Probably of most significance, as it affects nearly all employees, is the superannuation percentage rate increases from 11.5% to 12%.
This means employers must pay 12% of an employee’s remuneration as superannuation to an eligible superannuation fund on behalf of an employee.
It should be noted that this is not an automatic increase in an employee’s remuneration as it will depend on an employee’s contract of employment. More specifically, if an employee’s contract states that their remuneration is inclusive of superannuation, then an employer can deduct the increase in the superannuation rate from the employee salary. By contrast, if an employee’s employment contract states that their remuneration is salary plus superannuation, then an employer will need to pay the increase in superannuation.
Employers should also now be mindful that superannuation has now become a National Employment Standard (NES). This means that employees can now personally commence proceedings for non-payment of superannuation and no longer have to wait on enforcement by the ATO. Furthermore, as superannuation is now an NES, failure to pay can now also result in significant pecuniary penalties that can significantly outweigh any actual underpayment of superannuation.
Other changes of note include:
- The high-income threshold increases from $175,000 to $183,000, which is the income rate at which employees not covered by an award or enterprise agreement lose unfair dismissal protection;
- The maximum compensation that the Fair Work Commission can award an unfairly dismissed employee increases from $87,500 to $91,550.
If you would like more information on how this may impact you or your organisation, you can contact our team of employment experts.