Archived News

Archived News

Jun 242016
 

Employers should be alert to changes to worker entitlements effective 1 July 2016: 

  • Unfair Dismissal High Income Threshold;
  • Compensation Cap for Unfair Dismissal;
  • Redundancy Tax Free Amount;
  • Employment Termination Payments (ETP) Lower Tax Rate Cap; and
  • Superannuation Maximum Contribution Base.

Unfair Dismissal High Income Threshold

From 1 July 2016, the High Income Threshold will increase from $136,700.00 to $138,900.00.

Employees earning more than $138,900.00 cannot make unfair dismissal claims unless they are covered by a modern award or an enterprise agreement.

The following are included in the High Income Threshold calculation:

  • Wages;
  • Superannuation;
  • Money paid on behalf of the employee (e.g. salary sacrifice); and
  • The agreed monetary value of non-monetary benefits (e.g. company car or mobile phone). 

The High Income Threshold calculation does not include:

  • Payments which cannot be determined in advance (e.g. commissions, incentive-based payments and bonuses);
  • Overtime (unless the overtime is guaranteed); and
  • Reimbursements.

Unfair Dismissal Compensation Cap

The maximum compensation for unfair dismissal applications is the lesser of 6 months pay or the equivalent of half the Unfair Dismissal High Income Threshold, $69,450.00.

Redundancy – Tax Free Amount

From 1 July 2016, the Tax Free Amount for genuine redundancy payments will increase from $9,780.00 to $9,936.00. The additional amount per completed year of service will also increase from $4,891.00 to $4,969.00.

Employment Termination Payments (ETP)

The cap for the lower tax rate on ETPs is at $195,000.00 for the 2016-2017 income years.

Superannuation

In 2014-2015, the Superannuation Guarantee Contributions Rate was frozen at 9.5% and will remain at this rate until the 2020-2021 financial year.

The maximum quarterly contribution base will increase from $50,810.00 to $51,620.00 on 1 July 2016; and the maximum annual contribution base will increase from $203,240.00 to $206,480.00.

The maximum contribution bases are the maximum salary amounts for which an employer must contribute superannuation guarantee amounts, unless the employer has agreed to pay superannuation contributions on the total salary paid.

Nov 132014
 

On Wednesday 12 November 2014 Clark McNamara Lawyers again participated in the 38th JP Morgan Corporate challenge, a 5.6km run around Centennial Park. The challenge supports charities all around the world. This year's donation will go to the not for profit "The Indigenous Marathon Project" founded by Rob de Castella.  IMP used marathon running to show the incredible capacity of […]

Nov 292013
 

The property market is booming and everyone is scrambling over each other to get into it.  We get calls all week: there’s an auction Saturday, can you review a contract quickly.  Well, we sure can, but there is an unfortunate circularity around real estate due diligence – how do you get over the property quality […]

Nov 192013
 

On Wednesday 13 November 2013 Clark McNamara Lawyers put away their pens and paper and participated in the 37th JP Morgan Corporate challenge, a 5.6km run around Centennial Park. The challenge supports charities all around the world. This year more than $700,000 will be donated from the proceeds of the challenge. The profits generated in […]

Sep 272013
 

On 25 September, 2013 the NSW Court of Appeal  handed down judgment in The Owners – Strata Plan No 61288 v Brookfield Australia Investments Ltd.  Brookfield (then called Multiplex Constructions Pty Ltd) constructed serviced apartments under a construction contract with a Developer. Following completion of the building a strata plan was registered. Latent defects in the serviced apartments were later discovered […]

Jun 262013
 

The longstanding battle between HRX and Talent2 has erupted again, this time with Talent2 losing out to HRX. A number of HRX employees have left HRX for Talent2.  However it was the departure of Mr Scott to Talent2 that led to Talent2, that was not even a party to the litigation, being ordered to pay […]

Jun 042013
 

A recent Federal Circuit Court decision demonstrates that the Fair Work Commission (‘FWC’) is taking the underpayment of workers’ wages and entitlements seriously. During the three years that Gail Keen was a casual employee of New Image Photographics Pty Ltd (‘New Image’) she was underpaid $19,314 due to New Image’s disregard for the minimum wage, […]

May 212013
 

A UK court has found that a company does not own its CEO’s emails if they are not held on its servers. A former CEO of a UK company had his company emails automatically forwarded to his personal email address. A dispute arose around the construction of a 50,000 dead weight tonnage vessel, relating to […]

May 212013
 

Contracts to stop an ex-employee from poaching a company’s clients need to be carefully worded. A post-employment solicitation restraint is a clause in an employment contract that seeks to ensure employees leaving a company do not take the company’s existing clients with them. This generally means an employee is forbidden from advertising or soliciting custom […]