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):
- The Superannuation guarantee rate changes from 9.25% to 9.5%.
- The maximum super contribution base rises to $49,430 per quarter.
- The general concessional contribution cap rises to $30,000 per annum.
- The concessional contribution cap for those 49 or over rises to $35,000 per annum.
- The non-concessional contribution cap rises to $180,000 per annum.
- The 1.5% Medicare levy is increased to 2% to fund the National Disability Insurance Scheme
- 2% Debt levy begins for those earning over $180,000 – remember that Fringe Benefit Tax is not set to rise until April 2015.
- 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
- The new ASX Council Corporate Governance Principles and Recommendations come into effect for financial years starting 1 July 2014.
- If regulatory approval under the Corporations Act is granted, final ASX Listing Rule changes are to come into effect.
- 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.
- Superannuation funds that are members of the Financial Services Council must comply with FSC Standard No. 20.
Unfair dismissal threshold
- 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.
- The minimum wage increases by 3%, or $18.70 a week, to $640.90 per week ($33,326.80 annually).