Superannuation in­creases de­layed un­til 2021

Australasian Timber - - ASSOCIATION NEWS - By Brian Beecroft Chief Ex­ec­u­tive Of­fi­cer Tim­ber Trade In­dus­trial As­so­ci­a­tion

TTIA HAS pre­vi­ously ad­vised em­ploy­ers with re­gard to the grad­ual in­crease to superannuation con­tri­bu­tions.The lat­est change to that sce­nario oc­curred when the Se­nate passed leg­is­la­tion that will freeze the em­ployer com­pul­sory superannuation guar­an­tee con­tri­bu­tion at 9.5% un­til 2021, and abol­ish the Low In­come Superannuation Con­tri­bu­tion in 2017.

The laws are part of a pack­age of re­forms con­tained in the Min­er­als Re­source Rent Tax Re­peal and Other Mea­sures Bill 2014.

The su­per guar­an­tee con­tri­bu­tion in­creased to 9.5% on 1 July 2014 and was due to in­crease to 10% from 1 July 2015 with fur­ther in­creases up to 12% in 2019. Now from 2021, the 9.5% rate will in­crease by 0.5% each year un­til it reaches 12%.

Sched­uled Superannuation Guar­an­tee Con­tri­bu­tion In­creases:

If you are a TTIA Mem­ber, please con­tact the As­so­ci­a­tion with any queries re superannuation on (02) 9264 0011.

An­nual leave close­down guide­lines

Many em­ploy­ers at this time of the year will be be­gin­ning to plan their an­nual Christ­mas close­down.The en­ti­tle­ment for an em­ployer who wishes to di­rect em­ploy­ees to par­tic­i­pate in an an­nual close-down is the ap­pli­ca­ble mod­ern award or en­ter­prise agree­ment.

The ma­jor­ity of mod­ern awards which pre­scribe an­nual close down for an­nual leave pur­poses pro­vide that the em­ployer must give af­fected em­ploy­ees one month’s no­tice of the in­ten­tion to close down. If your em­ploy­ees un­der the Tim­ber In­dus­try Award 2010 com­prise all or the ma­jor­ity of em­ploy­ees in the or­gan­i­sa­tion, this no­tice re­quire­ment would in­deed ap­ply – Clause 33.8(a).

Mem­bers should be aware that a close down for an­nual leave does not nec­es­sar­ily in­volve the whole of an em­ployer’s busi­ness – it may only ap­ply to a sec­tion, e.g., if the pro­duc­tion area closes down at Christ­mas, the main­te­nance sec­tion may per­form rou­tine work on pro­duc­tion ma­chin­ery.

As the pro­vi­sion for an­nual close-down for an­nual leave pur­poses is not a ‘stan­dard’ term in mod­ern awards, an em­ployer should check the ap­pli­ca­ble mod­ern award to de­ter­mine the spe­cific re­quire­ments for close down or con­tact the TTIA hotline on (02) 9264 0011.

The terms of the ap­pli­ca­ble mod­ern award de­ter­mine whether em­ploy­ees with in­suf­fi­cient ac­crued an­nual leave can be sent on leave with­out pay dur­ing the close down. Clause 33.8(c) of the Tim­ber In­dus­try Award pro­vides that an em­ployee who has not ac­crued suf­fi­cient an­nual leave to cover part or all of the close down is al­lowed paid leave for the pe­riod for which they have ac­crued suf­fi­cient leave and un­paid leave for the re­main­der of the close down. In the case of an award/agree­ment-free em­ployee, the Fair Work Act states that an em­ployer may re­quire an award/agree­ment-free em­ployee to take a pe­riod of paid an­nual leave, but only if the re­quire­ment is rea­son­able. The one month pro­vi­sion – as in many awards – pro­vides gen­eral guid­ance in re­la­tion to an­nual close-down, al­though the em­ployer should no­tify af­fected em­ploy­ees as soon as pos­si­ble once the de­ci­sion to close has been made.

Christ­mas greet­ings

As the fes­tive sea­son ap­proaches, TTIA staff would like to ex­tend our best wishes to all readers and thank you for your con­tin­ued sup­port of the As­so­ci­a­tion.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.