Award Wages, Allowances, Superannuation & Tax Changes 1 July 2014

20th June 2014

There are some significant changes to minimum award wages and allowances as well as superannuation contributions and tax rates on PAYG earnings starting 1 July this year.

Award Wages and Allowances

Further to the decision of the Fair Work Commission on 4th June to increase all minimum wages by 3%, it has now published the Determinations for each award with the new wages and allowances. The new minimum rates apply from the first pay period commencing on or immediately after 1 July 2014.

Note that the increases to wages may be offset (absorbed) against higher actual wages and salaries paid to your employees unless you have expressly agreed to pass on the amount decided in the Annual Wage Review.

Superannuation Guarantee Contributions Increase to 9.5%

A reminder that coinciding with the increase to minimum award wages and allowances, mandatory employer superannution contributions increase to 9.5% from 1 July as well.

PAYG Tax Changes to Fund Disability Care and Temporary Deficit Levy

The Medicare levy increases to 2% to fund the new Disability Care insurance scheme on 1 July 2014 and the temporary Deficit Levy on employees earning more than $180,000 per year (having passed through Parliament earlier in the week) also applies. New PAYG tax tables have been published by the Australian Tax Office showing the changes

If you need guidance and assistance on any of these changes please contact me.