Key employment rate changes coming into effect 1 July 2024

As we commence the new financial year, a number of key employment rate changes will come into effect on 1 July 2024.

These include the National Minimum Wage which the Fair Work Commission (FWC) announced a 3.75% increase for, which will apply from the first pay period commencing on or after 1 July 2024, brining Australia’s National Minimum Wage to $24.10 per hour, or $915.90 per week. Additionally, the super guarantee (compulsory employee contributions) will increase from 11% to 11.5%.

Additionally, the high income threshold has been increased to $175,000, restricting all employees who earn above this amount from accessing unfair dismissal protections. Accordingly, the compensation cap for unfair dismissal claims has also been increased to $87,500.

Finally, the tax-free cap for genuine redundancy has been increased to $12,524 (base limit) plus $6,264 for each complete year of service, affecting the amount that employees subject to a genuine redundancy are able to claim tax-free of their redundancy payments.

Below is a summary of the key employment rate changes which will come into effect on 1 July 2024.