Are you Ready for 1 July?

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As a new financial year begins, it can be difficult to keep on top of remuneration and regulatory changes. A number of changes you should be aware of (with some still pending legislation):

Calendar
Superannuation:

  1. The Superannuation guarantee rate changes from 9.25% to 9.5%.
  2. The maximum super contribution base rises to $49,430 per quarter.
  3. The general concessional contribution cap rises to $30,000 per annum.
  4. The concessional contribution cap for those 49 or over rises to $35,000 per annum.
  5. The non-concessional contribution cap rises to $180,000 per annum.

Taxation:

  1. The 1.5% Medicare levy is increased to 2% to fund the National Disability Insurance Scheme
  2. 2% Debt levy begins for those earning over $180,000 – remember that Fringe Benefit Tax is not set to rise until April 2015.
  3. Transitional rules applying to existing LAFHA arrangements entered into on or before 8 May 2012 end, with new LAFHA rules applying to the arrangements. Employees will be required to maintain a home in Australia for their use while they are living away from home.  If this is satisfied, concessional FBT treatment applies for a further 12 months (to 30 June 2015).

Governance and Disclosure

  1. The new ASX Council Corporate Governance Principles and Recommendations come into effect for financial years starting 1 July 2014.
  2. If regulatory approval under the Corporations Act is granted, final ASX Listing Rule changes are to come into effect.
  3. Superannuation funds will need to disclose the remuneration of executive officers and trustees. Recently released details on triggers and release timings can be found in ASIC Regulatory Guide 252.
  4. Superannuation funds that are members of the Financial Services Council must comply with FSC Standard No. 20.

Unfair dismissal threshold

  1. Employees who earn more than $133,000 and who aren’t covered by a modern award or enterprise agreement will be unable to make an unfair dismissal claim. The threshold was previously $129,300.

Minimum wage

  1. The minimum wage increases by 3%, or $18.70 a week, to $640.90 per week ($33,326.80 annually).

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