The NSW Office of State Revenue has a little known scheme to encourage businesses to fill new positions. Basically there are 2 schemes:

1. If you don’t pay payroll tax (ie your annual salary bill is below the current $750,000 threshold) for each incremental position you fill in your business you can receive $2,000 after the person has been in your employment for 12 months. All you need to do is register them when they first start and keep them employed for at least 12 months.
2. If you pay payroll tax the scheme is even more generous. For every new hire that increases your headcount you are legible for (after 12 months) a $2,000 rebate on your payroll tax provided that position is still filled after 12 months. If the position is still filled for another 12 months (ie 2 years in total) you get a further $3,000 rebate totalling $5,000 after 2 years. The process to register is reasonably straightforward and should be done within the first 30 days of a person starting employment. We recommend it become a part of your on-boarding process.

There are some finer details to both schemes. If you’d like more information please get in touch and we can advise further. Call me on 1300 900 741 or email david@wurthhr.com.au

David Wurth

Principal Wurth HR

Some useful salary thresholds for your HR and payroll teams (all effective 1/7/15):

• Access to unfair dismissal legislation – $136,700. Maximum payout is $68,350
• Highest salary employers have to pay super on (currently 9.5%): $203,240 ($50,810 per quarter)
• Minimum wage – $656.90 per week, ($17.29 per hour), $34,158.80 pa
• Modern Award salary rates – 2.5% increase across the board

 

From 1/7/15 the minimum weekly wage will be $656.90, a 2.5% increase.

Hourly this equates to $17.29; yearly $34,158.80.

All Award wages will increase by the same amount on 1/7/15 – make sure you’re paying your people appropriately from that date.

Watch this space for further updates on salary thresholds covering super and unfair dismissal.

Car Expenses

From 1/7/15 there will be a flat per kilometre allowance of 66 cents, regardless of the size of the car’s engine.

Paid Parental Leave

If your employer provides a paid parental leave benefit you won’t be able to access the Government’s paid parental leave scheme as well. This comes into effect 1/7/16.

Super

From 1/7/15 a terminally ill person can apply to get all their super paid to them tax-free if 2 doctors (one must be a specialist) certify that the person is likely to die within the next 2 years. This is a 100% increase to the one year time-frame currently in place.

Well, it’s finally happened. The Federal Government has dumped for good their planned paid parental leave scheme which had been billed as one of their cornerstone policies running up to the last Federal election in 2013. Truth is, it was Tony Abbott’s baby (so to speak!) which many of his front bench had always been dead against.

What that means is that the current scheme brought in under Labor back in 2010 will remain in place – 18 weeks of paid leave at the minimum weekly wage (as at 4/2/15) of $640.90.

There is some conjecture as to what will happen to the proposed 1.5% tax levy imposed on so-called “Big Business” to pay for the Libs’ scheme. It’s due to take effect from 1/7/15 and is expected to fill Government coffers to the tune of $5 billion.

Anzac Day 2015 falls on a Saturday. The only state in Australia to get the following Monday (April 27) as a Public Holiday is Western Australia. For everyone else Monday April 27 will be a normal working day.

So, if you’re employing people who are going to work on Saturday April 25 you’ll have to pay them the appropriate overtime rate (usually their normal pay plus 150%).

In a recent case before the Federal Court of Australia (Richardson v Oracle) the applicant was successful in appealing against the inadequacy of an $18,000 payout for sexual harassment.

The Federal Court ordered Oracle to pay  $100,000 plus a further $30,000 for economic loss. The Court said that community standards demanded a much more substantial payout for cases of sexual harassment thus casting aside the previous normal range of payouts from between $12,000 and $20,000.

Employers beware – don’t pay lip-service to sexual harassment in your workplace. Take proactive steps to minimise the likelihood of a sexual harassment claim. Not only will you avoid massive fines you will also have a productive and harmonious workplace. Talk to your HR specialist today!

 

Since 1/1/14 the Fair Work Commission has been empowered to deal with bullying complaints. A recent report shows that only a handful of claims have been substantiated with most cases failing the burden of proof test requiring the applicant to prove repeated unreasonable behaviour.

A number of key points have emerged from cases dealt with so far this year:

1. Bullying behaviour prior to 1/1/14 can be the subject of a claim

2. As employers, make sure you review your anti-bullying policies and grievance procedures. It’s not enough to have polices alone; you need to ensure training is provided to all employees and that your management team reflects best-practice by demonstrating impeccable behaviour

3. When investigating a claim of bullying offer support to both the complainant and the alleged bully or bullies until the process is over.  Prefer to use an external HR specialist to conduct the investigation

4. Most important of all – take action immediately you become aware of a complaint. Even if there is no complaint and you witness an episode of bullying you must be proactive – do not sweep it under the carpet. It can destroy your business if you let it go.

Yesterday the Federal Government announced that they have further postponed employer superannuation contributions. The new timetable is:

The current rate of 9.5% will remain in place up until 30/6/2021

From 1/7/2021 there will be yearly .5% increases until 1/7/2025 when the contribution will reach 12%.

From 1/7/14 employers have to pay 9.5% super, an increase of .25%.

This rate will remain in place until 1/7/18 when it will go up to 10%.

Every year following that the rate will increase a further .5% until it reaches 12% on 1/7/22.

Did you know that under the Liberal government’s proposed paid parental leave scheme super is paid in addition to the 6 months’ salary?

Under the current scheme an eligible parent receives 18 weeks of the minimum wage (currently $640-90 per week) but no super.

SuperStream is a new Federal government initiative. Check out the ATO website to see how it will affect your business.