9 June Changes to Superannuation Obligations June 9, 2021 By Reef Admin General 0 In its May budget statement, the Federal government announced the resumption of the legislated program to gradually increase the compulsory Superannuation Guarantee rate from 9.5% to 12% by 2025. The resumption of the program will see the compulsory employer superannuation rate increase from the current 9.5% to 10% on 1 July 2021. This means that from 1 July this year, employers will be required to make superannuation contributions on behalf of employees at the rate of 10% of the employee’s “ordinary time earnings”. An employee’s ordinary time earnings upon which superannuation contributions are calculated, includes not only wages and salary but commission and bonus entitlements. Subject to how the employee’s employment contract is constructed, it may be possible to absorb the superannuation increase into existing contractual arrangements. However, it is important that professional advice is sought prior to taking steps for any such absorption. REEF can provide its members with guidance on this complex matter. To assist members communicate the change that the superannuation increase will have on commission entitlements, REEF has prepared two template “MEMOS” that can be issued to an employee affected by the change. One template is applicable to employees on either a debit-credit or target based commission structure. The other relates to commission-only employees. Please login to the REEF PMS to access these templates. Related Federal Rule changes endorsed by Executive Committee On 16 December 2016, the Executive Committee unanimously endorsed a number of Rule changes, which have now been lodged with the Fair Work Commission for its approval. Changes to annual leave provisions now in play In an important decision by the Fair Work Commission, annual leave provisions in modern awards have been varied to provide greater administrative flexibility. The changes apply from the first pay period on or after 29 July 2016. When an agency changes hands Does the transferring employee's service with the old employer count as service with the new employer? Changes to Victorian long service leave Victorian real estate employers should be aware of the new Long Service Leave Act 2018 (Vic). The Act was passed in May and (unless proclaimed to start earlier) will commence operation on 1 November 2018. UPDATE: Changes to award conditions The Fair Work Commission has been examining a number of "common issues" as part of the overall review of all modern awards and has determined a number of changes. What are my employment obligations under the NES? The National Employment Standards are a critical component of the employment safety net for Australian workers. Here we explain the 10 standards. Comments are closed.