Home' News Bulletin : ADA News Bulletin May 2015 Contents 43
Two important employment relations changes will occur from
1 July 2015 that will affect the way small businesses operate.
The first relates to the superannuation ‘Superstream guarantee.’
Employers of businesses with fewer than 19 employees will
be required to use the Superstream system as of 1 July 2015.
Employers of businesses with more than 20 employers are already
in the process of transitioning to the Superstream system and the
transition period for businesses of this size will end on 1 July 2015.
The transitional period for businesses with less than 19 employees
to the Superstream system will end on 30 June 2016.
Superstream is a government initiative that aims to simplify
the process of making super contributions for employees, by
integrating some of the processes involved in complying with
the superannuation guarantee. These processes include making
contributions for each employee to their respective fund regardless
of the fund provider or type of fund, making choice contributions
to self-managed super funds, facilities for registering employees
with default funds and facilities for updating employee details with
their fund. It will ensure that contributions are made in a regular
timely manner and are recorded more accurately, both of which
will help to reduce payroll costs.
Superstream requires employers to make employee super
contributions electronically using a new online system program
on the Australian Taxation Office website: www.ato.gov.au.
As contributions will, from 1 July 2015 onwards, need to be
submitted using the online system, other methods of making
super contributions such as by paper, by email, or cheque will
To prepare for Superstream employers will have to either update
their existing payroll software, consider outsourcing to a payroll
provider or consider using a superannuation clearing house.
ANNuAL WAgE REviEW
The second major change is the annual wage increase from the
Fair Work Commission (FWC) for all National System Employers.
National System Employers are all incorporated employers in
all states and unincorporated businesses in all states except
unincorporated businesses in Western Australia (WA). The FWC will
announce their annual minimum wage increase decision in June
2015 (the exact date is unknown at this stage). The increase is
commensurate with the yearly increase to the Consumer Price Index
(CPI) and will be applied to the wage rates in all modern awards
and the national minimum wage (currently $16.87/hr). The increase
may also be applied to allowances in some modern awards.
The Western Australian Industrial Relations Commission (WAIRC) will
also release its annual minimum wage increase in July (exact date
not yet known). The increase will apply to all WA unincorporated
businesses which operate under state awards and the state minimum
wage case. Until their announcement the FWC and WAIRC it is
unclear what the new award and minimum wage rates will be. The
ADA HR Advisory Service will release updated wage rate guides which
reflect the changes to wage rates in the relevant award for both
national system and state system employers, between late June and
mid-July 2015. The increases to award rates and minimum wages are
to be applied as of the first pay period on or after 1 July 2015.
Employers are advised to continue to check the online ADA HR
Resource Library from 1 July 2015 for updates so that they can
make changes to their pay rates if necessary. It should be noted
the rate of pay an employer may be currently paying may satisfy
the current minimum award rates, however this may not be the
case after the increases in July 2015. Employers will therefore need
to ensure they increase the pay rates of any employee whose pay
rate falls below the increased award wage rates to ensure their
employees are not being underpaid.
FOuR yEAR AWARD REviEW
It is worth noting that the four yearly award review process
through the FWC is still continuing. The outcomes of this process,
once completed could potentially result in changes to award
entitlements relating to the span of ordinary hours, penalty
rates and loadings and annual leave entitlements. The ADA HR
Advisory Service will release further updates about changes to
award conditions as the review process progresses. Employers are
advised to continue checking the Online Library of HR resources
and monthly publications for further updates from the ADA HR
For more information about anything in this article or to discuss
your specific workplace issue, contact the ADA HR Advisory
Service. Alternatively, members can access a vast array of contract
templates from the ADA online HR Portal at www.ada.org.au after
login to the members’ area.
For more information or assistance, please contact the
friendly team at the ADA HR Advisory Service on:
Phone: 1300 ADA INC (1300 232 462)
Fax: 02 8448 3299
ADA online HR Portal at: www.ada.org.au after login
to the members’ area.
The ADA HR Advisory Service is available from
8:30 am–5:30 pm (AEST) Monday to Friday.
‘The answer could be just a phone call away’
Be prepared for
CHANGES IN JULY 2015
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