The Abbott Government’s Budget released on Tuesday evening will see a number of employment and industrial relations changes in the following areas:
- Superannuation: Compulsory employer super contributions, known as the superannuation guarantee rate (“SG rate”), will increase from 9.25% to 9.50% on 1 July 2014 and will remain at this rate until 30 June 2018. The SG rate will then increase by 0.5% each year until it reaches 12% in 2022-2023
- Paid parental leave: From 1 July 2015, mothers will be provided with 26 weeks’ paid parental leave at the greater of the mother’s actual wage or the national minimum wage up to an annual $100,000 salary cap including superannuation (i.e. $50,000)
- Pension age: Continuing on the former Government’s move to increase the age pension age to 67 years by 1 July 2023, the Abbott Government has proposed a further increase the age pension age to 70 years by 1 July 2035. In addition, the indexation of pension payments will be on CPI, rather than wages, from September 2017
- Restart Program: Through the new Restart Program, the Government will encourage businesses to employ mature age job seekers aged 50 or over by providing a wage subsidy of up to $10,000 over 24 months
The above proposed changes, if implemented by the Abbott Government, are likely to affect most businesses. All employers should make sure that management and the payroll staff are aware of these upcoming changes.
If you have any questions regarding the proposed changes outlined above, do not hesitate to contact HR Legal on the details below.
This article was produced by HR Legal. It is intended to provide general information only in summary format on legal issues. It does not constitute legal advice, and should not be relied on as such.